TIPS: How To Manage Life Expenses To Invest Into Business
As part of our Business and Life Tips category, we have Zimbabweans who offer tips for life and business.
In the article, 30-year-old banker and agribusiness entrepreneur, Rugare Chakauya shares his tips for managing life expenses so as to invest in starting and growing a small business. This way, one doesn’t have to wait for someone else to inject capital for business ideas to come to life
Outside his regular job as a loans officer at a local bank in Chiredzi, Chakauya farms road runners. He also has a clothes retailing business.
Chakauya shares below:
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How can I start my Business with Life expenses?
This question is limiting most of the young potential entrepreneurs to venture into projects.
1. Live within your means.
Never spend what you don’t have. Most people spend money that they don’t have by borrowing and they assume that they will eventually get more money from somewhere else to cover the debt. Unchecked, this behavior only perpetuates a debt cycle that is difficult to break over time.
2. Avoid buying vegetables for consumption. Grow them!
Grow your own vegetables. If you visit my home you will see the tomatoes I grow on my own in a small bed. I also grow shallots, covo, tsunga (mustard greens) etc. Why? Because most households purchase vegetables on a daily basis, however these repetitive and seemingly insignificant costs when added up can actually amount to big monies over time.
3. Always buy basics in bulk.
Or you run the risk of overspending on non-essentials with every trip to the supermarket which can ultimately lead to an erosion of potential savings or capital. Here are some items that you should aim to buy from wholesalers at most once a month: sugar, salt, cooking oil, washing powder, tea leaves, mealie meal, rice and soap.
4. Rent a house you can afford!
Find and live in a decent place you can afford and use the remainder of your money to invest in business opportunities if this is your goal. Defer moving to your dream till after your business has gained enough traction to sustain itself and your needs separately.
For a simpler illustration of potential rental savings, one only has to consider the expense in annual instead of monthly terms. Say you are paying rent of US$250 a month, this adds up to US$3,000 in one year and up to US$15,000 at the end of 5 years.
5. School fees considerations
Every parent agrees on the importance of quality education for their children. However, this must be achieved in a sustainable manner by sending children off to schools which the family affords.
After all in addition to the requisite primary and secondary school tuition or boarding fees payments are other associated costs for uniforms, extra-curriculum activities, school trips etc. Furthermore there is need for parents to make conscious efforts to save towards each child’s university education.
6. Do not take or spend sales money.
One of the common causes of start-up collapse is failure by the entrepreneur to recognize that revenue is not profit and using this money to cover non-business related expenses.
7. Save or invest any windfalls that come your way
Whatever the source, think of any extra funds that come your way as a once-off golden opportunity for savings or investment – because it usually is.
8. Do not carry extra cash to places where the risk of overspending is a possibility
Sometimes you clearly know how much you want to spend at a particular place or over a certain period of time, but then you carry extra money just in case you might need it. Truth be told chances are very high that you will eventually ‘need it’ and just end up spending it. Not everyone is disciplined enough to stop themselves from using cash that has been set aside. It is rather prudent to leave extra money in a place you cannot access easily.
9. Just do it
Everyone has a justifiable reason to either go into business or not. It must be acknowledged that in life or business risks are unavoidable but must be carefully weighed against the presented opportunity in order to arrive at the best possible course of action. Closely related to this is the crippling habit of giving undue attention to fears of failure which can stifle innovation. Just as risks are inevitable and can be mitigated, failure in one form or another is an inescapable tutor that can teach us better ways of doing things if we so choose.
Rugare Chakauya is a Banker. He writes in his capacity as an Agro Entrepreneur. For your valuable feedback and comments related to this article, Rugare can be contacted at rugarechakauya@gmail.com or WhatsApp +263778813113.
