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Starting a Small Business after College Graduation

Starting a Small Business after College Graduation

Imagine this scenario: You’ve just graduated from college. You are given two options: (a) work at a well-known company, or (b) start your own business. Which would you choose?

Many new college graduates would most probably play it safe and choose option (a). Increasing numbers, though, would rather take the risk and go the entrepreneurial route to start up their own businesses.

Donna Fenn, author of Upstarts, a book about the Generation Y start-up phenomenon, says graduates are “starting businesses in droves.” This is due to a number of reasons, among which are the inspiring success stories of Internet entrepreneurs like Steve Jobs and Bill Gates; the founders of Facebook Inc.; and the founders of the photo-sharing app Instagram.

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Aside from these, graduates are also aware of regular downsizing and layoffs, meaning lack of job security at large companies.

Starting your small business

Nowadays, with advancements in technology, especially the Internet, it really doesn’t take much to start your own company. Most entrepreneur-wannabes just need a few laptop computers, a reliable Internet connection, and start-up capital.

Speaking of start-up capital, it is getting relatively easier for aspiring small business owners to get investors. CB Insights, a New York firm that monitors start-up funding, reports that investors made 1,749 seed investments, generally worth no more than $1.5 million each, in early-stage companies in 2012.

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Aside from investors, graduates can also get the capital they need by applying for a business loan. However, this may prove to be challenging if one has a poor credit score.

Fortunately, there are some things you can do to manage a bad credit rating.

First, determine the “damage” that needs to be “repaired” – check your credit score and think about what you can do to turn it around, if indeed it is in the bad credit range.

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More often than not, a person obtains a poor credit score when he or she does not manage his or her credit properly. Sometimes, though, this may not be the only reason. If you are a victim of credit scams, this can lead to bad credit as well. This is why it is important to perform regular credit checks, and to protect one’s identity as much as possible.

Managing your business credit

Once you have your small business set up, make sure that you manage your business credit as you would your personal credit. Here are a few tips:

  • Find out if you already have a business credit file.
    If you are a small business owner, determine whether or not you have a business credit file with D&B, which is the world’s leading source of commercial information and insight on businesses. If you discover that you already have a business credit file, go over it thoroughly so that you know what information it contains. If needed, make changes so that people looking at your business credit (e.g. financial institutions and suppliers) have the correct information.
  • Establish your business credit history.
    Small business owners usually use their personal credit and financial resources when they’re just starting out. However, they must establish a separate credit history for their business. This can be done by placing expenses, like a business phone line, under their business name, or opening a commercial bank account and using it to pay business-related bills.
  • Always pay your bills on time, and in the full amount as much as possible.
    One of the easiest ways to manage business credit scores well and build a good payment history is to pay your bills on time. As much as possible, pay every bill in the exact amount on or before its due date. Also, be sure to use your lines of credit carefully.
  • Keep your business credit file updated through regular monitoring.
    Monitor your business credit so that you may know if there are any changes in your credit ratings, as these may affect your relationships with customers, financial institutions and suppliers. Always make sure that your credit file is updated and accurate, and shows any changes like location, number of employees and revenue. These all have an effect on your credit rating.
  • Monitor your customers’ and merchants’ credit.
    Performing credit checks will give you an idea of the credit standing of your customers. This will in turn help you decide how much credit, and on what terms, you should extend to them.

Advantages of business credit management

Small business owners will find that managing their business credit proactively can help guarantee positive cash flow, which is, of course, something every business owner desires.

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This is because they can:

  • Obtain more financing at better terms.
    Small businesses that have good credit will be able to get financing when they need it. Conversely, businesses with poor credit ratings may be charged higher credit card and loan interest rates.
  • Get the supplies they need at the best possible terms.
    Suppliers usually evaluate the credit of small businesses before deciding on how much credit to extend to them. Having good business credit means you can get the supplies you need at the terms you can afford, which means you free up more money for other business needs.
  • Make wiser credit decisions on their customers.
    If business owners know the credit of customers, they can give better terms to credit-worthy customers. They can also avoid dealing with customers who don’t pay on time. Both of these can help improve cash flow.
  • Protect themselves against business identity theft.
    Business owners who actively manage their business credit file help ensure that false or fraudulent information is not in the file. They will always be aware of any inaccuracies and missing data so that they can address these immediately.

Starting a small business, especially if one is still a fresh graduate, may seem challenging. But once you are armed with all the knowledge, tools and resources you need, the journey will not seem so tough anymore. So go ahead and launch that business, and reach for your dreams.

Do you have any useful tips to share with new graduates on how to set up a business? Please feel free to share them in the comments section below. If you find this post useful or know others that could use some tips, go ahead and share it with your friends.

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Published on January 17, 2020

How to Eat Healthy on a Budget (The Definitive Guide)

How to Eat Healthy on a Budget (The Definitive Guide)

Have you ever looked at health gurus and wondered how on earth they can afford all that health food? Or maybe you’ve tried multiple times to start eating healthy only to find the $600 monthly budget overwhelming?

If you’re anything like me, you know exactly what I’m talking about! I absolutely understand the sinking feeling of looking back over a grocery budget and finding you went way over what you intended. And besides that, it can be hard to justify buying a tiny $5 bag of carrot chips while a $1 mound of potato chips is sitting right next door.

My husband and I recently ran into that struggle. We got married this past year and soon found ourselves trying to balance 12 hour work-days with keeping our relationship strong and trying to keep our personal businesses afloat. Granted, our budget was the one thing that took a hit! After we started tracking our spending, we were shocked to see we were spending over $1000 a month just on food! A little planning cleared that right up.

So, how to eat healthy on a budget?

Here’re the top tips I learned that helped us shave over $600 monthly off of our food budget so we could reinvest that in the areas that really mattered to us![1]

1. Meal Plan

You’ve probably heard the saying “Fail to Plan, Plan to Fail” right? Well, this saying couldn’t be any more true than in the area of healthy budgeting! The fact is, most healthy foods don’t actually cost that much… the pre-made time saving ones do!

If you go about creating a healthy meal plan within your budget, you could easily cut costs down to around the same price you are paying for junk food.

Meal planning is as simple as working in foods you already have in your fridge/freezer, adding in several meals with simple ingredients and seasonal veggies, and breaking it down into a shopping list.

Often, finding a few meals to make in big batches will save you the most money in the long run, which leads me to my next point.

2. Cook in Bulk

Not only will cooking in bulk save you a whole lot of time, it will save you a whole lot of money too! Believe it or not, if you find meals to make with similar ingredients, you can easily save more money than when you were eating unhealthy.

Don’t believe me? Just look at a $4 frozen pasta dinner. Now, sub that with a veggie pasta dinner. 5 zuchinni ($3), Pasta sauce ($2.50), and chicken ($5) could last you a full 5 meals which adds up to a whopping total of just over $1 per meal!

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That’s not even digging in to all the money you will save from fast-food. Trust me, a little $10 spent here and there add up! You’ll be saving a whopping amount from all the meal prep you will do!

3. Cook all Your Meals in One Day

The science behind this is 2-fold.

Number one, if you have lots of meals to grab and go, you will be far less likely to binge on pricier food when you get hungry. Let’s be real, you’re not going to spend 1 hour cooking when hub-n’-grub is at your bekon-call!

Number 2, meal prepping ahead of time will help you stick to your meal plan better when you’re not in the mood. Let’s face it, we’re all going to have days when protein and veggies doesn’t exactly sound appealing. But, if you have a full meal that’s quick to grab in the fridge, it will be easier for you to fill up on the good stuff rather than spending money on what you don’t really need.

4. Cut Back on Snacks and Specialty Items

I can almost hear you from across the screen. “But, I thought snacks were good for me!” Here’s the deal: Snacks are expensive! And healthy snacks, oh my goodness, say goodbye to your paycheck!

Look, I’m definitely not saying that healthy snacks are bad. Quite frankly, I would much rather you chow down on Halo Top than a triple-butterfinger-fudge sundae. It’s just that… healthy snacks are why eating healthy gets a bad rap for being expensive.

Look at it this way: You could either buy a week’s worth of groceries full of chicken, fish, beans, veggies, and fruits for $30. Or, you can spend that $30 on six snacks that will leave you hungry for more.

What’s more, the ingredients for gluten-free baked goods, sugar free substitutes, or protein powders alone will add up to you eating a full week’s budget in one sitting. By all means, if you want to work some yummy items into your budget, do it! But don’t confuse that extra monthly $300 of delicacies as a necessity. Your body and budget will thank you!

5. Satisfy Yourself with Your Favorite Subs

We all have an emotional tie to food. Maybe pasta reminds you of home! Or maybe a fresh-baked pizza is what gives you a feeling of comfort. Whatever you favorite food, find a way to work it into your budget in the best way.

We’re only human, and depriving ourselves of what we love will never end well. More often than not actually, it ends in take-out or a pricey-premade substitute.

Instead of finding yourself in this situation, find a way to make your favorite foods fit your budget. Zuchinni noodle pasta might just give you that feeling of home without breaking the bank. Or maybe you could google a healthy pizza alternative you would like that you could make at home. Often, something similar to your craving will be enough to give you a sense of satisfaction.

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Or, just buy your cheat meal and save it for a special day. That’s okay too!

6. Stick to the Cheaper Proteins

Okay, I know we all love steak. Unfortunately, buying pre-cooked or expensive cuts of meat are one of the easiest ways to drain a budget.

Instead of purchasing those, try buying frozen chicken or eggs. A 5 lb bag of frozen chicken can be as cheap as $5, and you can buy a whole weeks worth of eggs for just over $1. You could even try going vegetarian for a few meals if you really want to cut down on costs!

7. Buy Frozen Fruits and Veggies

I know, we all love our fresh fruits and veggies! However, sometimes frozen might be the way to go if you’re looking to cut costs!

Fruits and veggies are easiest to ship when frozen, making them a much cheaper option. Contrary to popular belief, scientists have actually found that frozen might be better for you too![2]

The reason is, frozen produce is picked at its prime and shipped immediately. Fresh fruit tends to be picked much earlier so it will ripen while being shipped. Not only does this make it less nutrient dense, but sometimes the fruits are actually pumped with artificial flavors to make up for the lack of real nutrients.

While I’m all for fresh fruits and veggies, don’t feel guilty if you opt for frozen foods due to a budget.

8. Bump up the Calories with Rice and Beans

The problem some people find when trying to eat healthy is that it can be hard to get the amount of calories you need without relying on expensive “specialty” items. Instead of stocking up on pricey gluten-free breads and pasta, I say stick to simple rice and beans as the bulk of your meals.

Brown Rice is very cheap and easy to use as a base for bowls and dishes. Likewise, beans can add a bit of fiber making you feel full and satisfied without having to spend a lot of money.

If you are trying to cut on body fat, use extra veggies as the bulk of your meal and add in rice and beans as a filler.

9. Try Acai Bowls

Acai Bowls can be a really cheap and satisfying meal as long as you do it right.

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You can find cheap fruits at most stores or just freeze your fresh fruits before it goes bad.

Making your own granola can save you a lot of money as well. The total cost for this delicious meal should only add up to a few dollars compared to triple that price if you were to buy one pre-made.

10. Make Your Own Meal Kits

Do you like your meals freshly cooked? Sending meal kits to your doorstep is an easy way to drain your budget. Instead, try making your meal kit at home! Not only is it fun, you will easily get a delicious taste.

Simply find a few simple meal cards or print some out and fill a ziplock with the ingredients for each specific day. Don’t know what recipe to make? Another option is to order one month of meal kits and recycle the recipe into ingredients for the upcoming months with ingredients you picked up from the store.

11. Don’t Drink Your Calories

A few dollars spent here and there can really add up! Just as with specialty items, healthy drinks can be a blackhole for you. An energy drink and kombucha and coffee each day could easily have you spending and extra $300 each month!

I you really need a special drink fix, try making your favorites at home. Bring a coffee in, make kombucha, or even try making lemonade with stevia or a healthy soda. You’ll be surprised w hat a big difference such a small change can make on your budget!

12. Buy Cheap Online

Just like anything else, it pays to be prepared. Buying foods from online retailers can be a really affordable way to save money as long as you’re prepared.

Plan ahead for those more expensive specialty items you can’t live without. It will save you tons of money compared to having to buy food from a specialty store.

13. Don’t Fret about the Clean Fifteen

One of the huge things that can mess with a person’s budget is eating organic. For the record, I am 110% all for eating organic whenever you can. However, for some people, it can be hard to make organic food fit into a budget.

Instead of scratching healthy eating for a smaller budget, try to buy meat and the dirty dozen organic, and don’t go crazy about the rest. The clean fifteen are the fifteen safest foods to buy that aren’t organic! Meanwhile, the dirty dozen is the most worthwhile avoiding. According to Produce Retailer, these are the dirty dozens:[3]

  1. Strawberries
  2. Spinach
  3. Kale
  4. Nectarines
  5. Apples
  6. Grapes
  7. Peaches
  8. Cherries
  9. Pears
  10. Tomatoes
  11. Celery
  12. Potatoes

14. Pay Attention to Storage

Keeping the food you have is just as important as how much food is in the first place. Try to stay on top of how much produce you can actually use before it goes bad. It might not be a bad idea to pencil an extra shopping trip in the middle of the week to keep food fresh.

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Investing in good food storage containers could go a long way in saving you in the long run as well.

15. Freeze Food Before it Goes Bad

Instead of getting mad at yourself at the end of the week for all the wilted produce you need to throw out, try freezing it before you get to that point.

Most frozen veggies will taste delicious in stir fries and soups. You can freeze fruits to make sorbet or smoothies. Frozen greens can be chopped up and tossed into just about anything for a nutrient boost!

16. Consider Ditching Most Supplements and Powders

I have nothing against superfood powders and supplements. However, if your budget is tight, it can be hard to fit supplements and powders in.

Instead of adding in powders, add extra nutrients to you food. Add lots of greens and veggies to all your meals to meet your nutrient needs. If you need a specific supplement, you can find great deals online as well!

17. Use Budget App

There are so many great apps you can download for free. One of my current favorite is HoneyDue because you can track your budget easily with your spouse. There are many options available, just find the one that you’re most likely to use. The ones that download your spendings automatically are often the easiest and will give you a more accurate number.

My husband and I use the same app, but have a separate budget for each of our weekly food plan and for our additional snacks. Keeping things separate can often be helpful to know exactly where your money is going. Plus, it can help hold you accountable if you have a significant other you are sharing money with.

18. Use What you Have

Most people have unused protein powders lying around in their cabinets. Instead of letting that go to waste, work them into your meal plan. Protein powders can make amazing doughnuts, pastries, or pancakes!

19. Enjoy the Process!

Finding ways to enjoy your new lifestyle will be helpful in sticking to it long term. Find fun in seeing how much you can save each month. Make a competition with someone to see who can stick to the lowest budget and create something fun to do for the winner with some of the money saved! Blast some music in the kitchen while cooking your new recipes.

Budgeting and health doesn’t have to be a drag. Make it fun and you’ll enjoy your new lifestyle long-term!

Featured photo credit: kevin laminto via unsplash.com

Reference

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