Starting a business to make money is not as easy as rumored, the girl gained 3 valuable lessons, the last thing everyone needs
When Rebecca VanderKooi was in her teens, she decided to venture into a field that at that time no one else her age had done. That’s the startup – establishing a company specializing in organizing events with small horses.
She has been running her business for almost 3 years. Then, due to being too busy with her university courses, she decided to close her business. However, Rebecca shared that she has no regrets about the time when she was very young.
This experience taught her a lot about budgeting and saving. Those lessons have followed her to this day as an adult.
1. Track all your income and expenses
During the course of her business, Rebecca realized the importance of a visual report of sales, expenses, and profits. Since then, she has always kept and classified money-related data in detail and carefully.
When she first started her business, she only considered big expenses like insurance, horse feed, and other big purchases. However, after that, she had many money-related problems when doing business. She is beginning to see the value of categorizing and listing all expenses, no matter how small.
It wasn’t until Rebecca started counting all the small expenses to keep her business running, that she realized she had an inaccurate picture of her income.
This has affected the way the budget is segregated. As an adult, she also tries to keep and take notes clearly in budgeting and tracking personal expenses.
2. Monthly and annual budgeting
As a teen business owner, Rebecca admits she didn’t have much experience when she started. But, as she learned more about what it means to budget, it completely changed the way she looked at finance.
During the first few months, she had a recurring problem of overspending, exceeding her business-specific budget. She then used the money from her personal account to pay for everything. As a result, Rebecca began to realize that she had to direct the cash flow from the business, not make up for it with personal money.
With that in mind, she budgeted to meet her goals. The biggest challenge is that the monthly income from the business depends on the number and type of events the company receives. She also needed to factor in annual business expenses like routine medical check-ups for the horses, hay and insurance.
In the end, Rebecca keeps the budget in line. Save what can be earned in favorable months for large annual expenditures or put it into an emergency fund.
Accordingly, she keeps her monthly expenses at 4.5 million. Rebecca charges 3.5 million for each 1-hour event. So it only takes 2 events per month for her to keep her business running.
3. Always have an emergency fund
When one of her ponies became seriously ill, she needed to take him to the emergency vet. Fortunately, it survived, but her “wallet” was exhausted when she received a medical bill of up to 35 million VND.
At the time, the business was new and not making much money. Rebecca was a teenager at the time, so she didn’t have enough money to make ends meet. She had to use her college funds to pay the bills.
Then Rebecca knew she needed a emergency fund. If the same thing happened again, she could cover that fee without touching other funds.
Photo: synthetic
at Blogtuan.info – Source: Kenh14.Vn – Read the original article here
