Starting your own business takes time, resources, and, of course, money. The first step to owning your own business is choosing what type of business you’d like to be in. Here I outline some valuable tips for staying out of debt as you launch your own business using Chalk Couture as an example.
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How to stay out of debt
Choose a company you’re passionate about
You’ll want to choose one that has products you believe in and you are excited or passionate about. You don’t want to get into a company just because you’re sister’s best friend’s daughter said this would be easy. Nothing comes easy when owning your own business, but you also don’t want to be stuck with a bunch of products you don’t know what to do with. If you love the products and you’re excited about sharing them, it will be much easier to share them with others, resulting in better sales.
I chose to join Chalk Couture for a few reasons, first, I loved all of the cute sayings and the multitude of things you could create from them, second, I already had a relationship with my sponsor and I knew she’d be a good leader, third, I knew people within my inner circle would love creating this way too, it’s so easy!
Choose a company with low start-up costs.
Chalk Couture makes it easy to start your own business. One of the greatest benefits of starting your own business with Chalk Couture is the low start up costs. In the U.S. you can start your own business for just $99. In Canada, you have two option – (option 1 $19) and (option 2 $129). Plus they offer designers 40% off on their products.
Find out more about starting your own Chalk Couture business here.
Avoid using a credit card to buy your kit
Use “cash” to purchase your kit. Pay for your start kit with your debit card. If you don’t have the cash to purchase the starter kit, consider cutting out an expense like your daily coffee habit, reduce how often you go out to eat to save money. Consider selling some unwanted items, or take some old clothes to a consignment shop.
If you absolutely must use a credit card, make a payment for the same amount of your starter kit before the next billing cycle .
Open a separate bank account for your business
It is best to keep your business money separate from your personal money. Trust me, you will thank me at tax time.
Avoid over-purchasing products
One of the benefits to starting a Chalk Couture business is getting XX% off one of your first orders. Now, it’s very tempting to go buy #allthethings, but do yourself a favor and don’t over-do it. Your checkbook will be thanking me later.
You’ll also want to avoid loading up on surfaces at your local craft store. Buying your surfaces directly from Chalk Couture not only ensures easy and smooth application without any additional prepping of the surface, but you also earn PV or personal volume and designer dollars for every $200 you spend in a calendar month (double check this information)
Collect pre-orders and payment up front
Garner some excitement from friends and family by hosting a demo event in your home. They will be so excited about how easy it is to create a project with Chalk Couture, they will want to create their own. Have a few pre-packaged (? – right term) bundles/projects to offer and take pre-orders.
What about sales goals?
Many companies have minimum sales goals you have to reach in a certain time period to stay active. Ideally, you’ll have enough customer sales to meet this goal. If you fall short and are actively working your business, I recommend having the funds set aside in another account to make up the difference of your minimum sales goal. However, I don’t recommend keeping your business afloat purely through making your own purchases.
Want to go to your company’s annual convention? Start budgeting and saving now. Research how much the ticket, travel, and hotel will cost. Don’t forget to add in food, special attire, mani/pedi, sightseeing and spending money.
Here are some tips to make your efforts pay off:
Pay yourself first. Owning your own business is hard work and you should be paid for it! Set a dollar amount or percentage and give yourself a salary for a job well done.
Make your money work for you. Start a retirement savings account and put 15% of your profits into it. I recommend doing this each time you get paid. Once it’s there, don’t touch it!
Feel like your efforts aren’t recognized and you aren’t getting support at home? Treat your spouse or family to a rare treat. Let them know this was possible because of your Chalk Couture business.
Like these tips?
Comment below with your favorite or add your own.