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This week, we are discussing start-ups! In yesterday’s post, we discussed the first things you need to do when launching your wedding business. We provided a handy-dandy checklist for you of 30 items that will help you start out on the right footing. Today, let’s talk money, honey.
Money Matters…
When it comes to financing your start-up, these can be the greatest challenges you’ll face:
- Knowing exactly how much you’ll need to finance your biz
- Knowing what is important to your biz and what is less important
- How much things actually cost
- Investing in a “million dollar look” on “start-up pennies”
- Budgeting for uncertainties
- How your business will be financed
You HAVE to have a BUDGET!
So, I’m pretty much a stickler for having a plan. And, when you are launching your business, you need to give yourself a budget. Chances are you will be financing this venture on your own. So, make your dollars count until you have some income. These are some of the things you need to be budgeting for:
- Licenses
- Marketing design (logo and web design)
- Print collateral (business cards)
- Phone, Email, Fax, Website
We’re going to make this easy on you! We put together a Start-up Budget for those of you just getting started. The free download gives you a very basic guideline of what you should keep in mind when planning your early-stage finances. It also provides some guidance on what general price ranges you can expect to pay. This list is by no means complete, and you’ll have to fill in the blanks yourself. But it should help you get a basic idea of what you should be planning for. You can download the Start-up Budget (in Excel) here:
Sage Wedding Pros – Start-up Budget for the Wedding Industry
Financing Your Start-up
After you build your budget, you’ll have to answer one BIG question: How do you plan on financing your venture? This is a doozy if you’ve already quit your job and don’t have much cash squirreled away. My advice: keep your job until you’ve got some savings to launch your business. Read this post: on How to Quit your Day Job. Save what you can for as long as you can. Do not go into debt to finance your business. Debt is bad. Credit cards are evil. Capitol One is not your friend.
If you want to take on investors, you may start with your friends and family. But do it smart and do it carefully. Have agreements and contracts for every investment decision you make. I love Virgin Loans for this sort of thing. The company that brought you Virgin Air now has a business built around helping facilitate “social loans” – loans that are made between loved ones. Again, keep your relationships first and money second. And – put it in writing!
Baby Steps…
Last but not least: it’s OK to take this slowly. If you have big start-up costs, choose and prioritize. Pick the things that are most critical and work on down. Rome wasn’t built in a day. Neither were any of the leading Fortune 500 companies… or even the awesome ones we see in the wedding industry.
Go on! Budget! Prosper!
psst… did you miss the Start-up Checklist Yesterday? Find the checklist here.
by Michelle Loretta
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