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When I decided to start my coaching business, I was older and wiser, and grateful I made many of my mistakes at an earlier age. I learned from them and knew not to repeat them.
I started small. I had a computer, an old, but reliable printer, a 15-year old calculator and desk, and a comfy office chair.
All I needed was a quality phone capable of handling multiple lines and a headset.
For first twelve months of my business, these items were more than sufficient.
As my business grew and profits increased enough to support additional spending, I upgraded my computer and printer and made improvements in my office.
When starting your new home-based business, understand that your first year can be financially demanding.
Until you have a steady, reliable source of income, it is wise to avoid excessive spending and unnecessary purchases.
Be honest with yourself when making purchases for your business.
Yes, you need a good quality printer with fax/copy and scanning capabilities, but do you need one that is designed for high volume, large scale copying?
If you're not in copying business, a lower volume, lower priced multi-media product will more than serve you.
When starting your business, sit down and determine what you absolutely need to get things going and what costs will be.
What will your monthly operating expenses be? For example:
-internet access -bank charges -phone/fax lines -auto responder and shopping cart (if online business), -printer cartridges/office supplies -advertising, etc.
Then determine when you expect to start bringing in sales. How much will you need to earn every month to cover your operating expenses?
Not until your basic monthly expenses are covered and a surplus of funds is created should you begin to purchase nice-to haves.
Be frugal during your first year as a home-based business owner. Monitor and understand where your money is coming from and where it is going.
Keep a watchful eye, maintain strict control and pace your spending according to your profits.
By creating structure and remaining vigilant in your spending, you will build a solid foundation for your business.
Build a strong foundation, be financially responsible on an ongoing basis and sky will be limit!
Laurie Hayes is a Life Strategy/Small Business Coach and founder of Where the Heart Is Life Coaching.
Laurie specializes in assisting home-based business owners who face the challenges that come with working from home. She is the author of numerous articles and a bi-weekly newsletter, "The Heart of Living."
To subscribe to her free newsletter and learn more about coaching, visit www.wheretheheartis-lifecoaching.com