Money Sense For New SFI Affiliates

Money Sense for the New SFI Home Business Owner's

The first two years of any new business is the hardest..

What can we do to maximize our chances of success?

Like many aspiring businessperson, you may have decided to leave your job to work from home. You're ready to take the opportunity for liberty, to have unlimited earning potential and chance to live your life the way you want.

One of the biggest obstacles you will face during the first couple years will revolve around cash flow and money management.

In order to give yourself the best opportunity possible of surviving the first two years so you must thrive from that point on, it will be necessary that you have command of the following five areas:

1. Gain control over your spending today

2. Create a personal and business budget

3. Increase your financial IQ

4. Explore sources of capital

5. Think like a successful business owner

First things first

Gain control over your spending today -

Honestly valuate your spending habits and consider where your money is going. Realistically are you living beyond your means and purchasing things you don't really need?

Take control over unessential spending. Before making a purchase, ask yourself if it will impart your building a successful business or take you further away from it.

Create a budget -

Do you know how much money you're bringing in each month and how much is going out? Budgeting doesn't have to be displeasing or challenging and if you don't know where to begin, there are a multitude of helpful resources and articles on the Internet to get you started at no cost.

Successful business owners understand the importance of a budget and follow it faithfully.

If you have no interest or willingness to learn how to budget your money, maybe business ownership is not for you.

Increase your financial IQ -

You don't have to become a financial intellect or investment leader, but you do need to have the basic skills. There are plenty of resources online to help educate you.

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Explore Sources of Capital -

The first year may require significant investment in equipment, education and marketing and there's no guarantee your business will start making money right away.

Unless you have significant savings put aside for the start-up period, you will need to explore alternate sources of capital.

Depending on your product or service, perhaps creating a market analysis would be feasible.

If you borrow money, even if from family or friends, always get agreements in writing and make sure the loans are set up with proper security, terms and conditions and a payment schedule.

Think and act like a business owner -

During your transition from employee to business owner, you will require a change in your thinking. You will quickly discover that trying to get everything for free or at a "deal" may actually hinder your success.

In the business world, you will be required to develop close relationships. If you need something of someone, how will you help him in return? Practice the Law of Reciprocity which means, learn to give and take mutually. In other words, when someone gives you something, give something of equal value back.