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The Secrets of Starting A Profitable Home Business

If you've ever wanted to save to start a home business, then you're reading the right article. That's because you're about to discover my easy 3-step method for saving to start a profitable home business.

And the good news is that this method works even if you do not make a lot of money.

Read on...

Step 1: Set up a separate savings account.

Many people who're new to saving don't realize that they need to do this step before they can start saving for an emergency fund (long-term). And that's why a lot of people who try to start a business end up failing - they're simply missing this crucial step

So, the first thing you need to do is set up a separate savings account from your checking account. You don't want to be tempted to withdraw from your savings so by setting up a separate savings account, in a separate bank from your checking account, you are less likely to spend your savings.

You'll find that this part of the process goes much more smoothly if you apply these tips and tricks:

  • Set up an online savings account.

  • Limit your withdrawals by destroying and bank cards and checks.

  • Via online banking or electronic funds transfers you can schedule an automatic savings of as little as $5/week or $20/month.

Once you've set up an online savings account with auto savings, then you can move on to the next step.

Step 2: Create a monthly budget of your expenses.

The next thing you need to do is print out your last 3 months bank statements to review your spending habits and monthly household expenses.

When I first started planning to quit my job and start my own business, I made a lot of mistakes. And now that I've helped others do it, I see a lot of people have a tendency to make the same mistakes. So let me share with you the top 3 mistakes and how to avoid them:

  • Mistake 1: Spend above their means, you can avoid this by creating a budget of your monthly household expenses and staying within your budget for expenses.

  • Mistake 2: Fail to plan for emergencies, you can avoid making this mistake by saving 3-6 months of household expenses for when profit is low.

  • Mistake 3: Accumulate too much bad debt, such as; credit cards, auto loans, pay day loans, etc. This is avoidable by remembering to not make Mistake 1 and keeping your debt to income (DTI) ratio between 20% - 30%, and 50% at the highest.

Step 3: Maintain a healthy debt-to-income (DTI) ratio.

At this step you're likely to notice that most people would start feeling discouraged if they have a lot of debt. So what you need to do is, print out a copy of your credit report from Credit Karma and see where your credit rating stands.

I still remember the first time I was doing this step and trying to build my credit score. I made so many mistakes without knowing what I was doing. Without knowing the steps you can take to repair your credit without having to spend a lot of money upfront, I would immediately make a payment. For fear that if I didn't at that moment, my score would never be good enough to be approved for personal loans, let alone business credit. I would get endless calls from bill collectors asking for payments and yes it improved my score by a little but a lot of the debt could've been disputed, negotiated payment terms, or paid for less than owed.

If you apply these tips and tricks, this step will be much easier to navigate:

  • You should NEVER agree to the payment terms unless you are sure that they company can prove that you in fact owe the debt.

  • Do NOT answer calls from collection agencies and do NOT state any information about yourself if the debt was sold to a collection agency.

  • If you decide to skip the disputing process and agree to make a payment, you can negotiate the payment terms to pay for less than owed.

  • You should dispute your debt with all three collection agencies yourself, as well as each collection agency.

And there you have it - a simple 3-step method for saving to start a profitable home business. Now that you know how to save money for your business, there's just one thing left for you to do: take action.

So get to it, and soon you will enjoy the perks of owning a profitable home business.

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