The Survival Guide for the Broke Entrepreneur
Dear Alexandria,
Your balance fell below $25 on…
I’m pretty sure Bank of America sent me this notification at least 20 times in 2013 (Sorry, Bank of America). Unfortunately, I’m not the only entrepreneur this has happened to and many of us don’t know what our options are to help us move forward when we’re in this predicament. I was inspired to write this guide because I was one of those people seeking solutions for surviving my “brokeness” and found some unique solutions during my experience and with the help of some amazing entrepreneurs. This guide is meant to help you navigate your options based on a collection of experiences. This is an evolving guide so feel free to share your tips in the comments or tweet me at @alexbatdorf and I’d be happy to include it.
This is dedicated to you broke entrepreneur!
Manage Your Money
I would say a widely shared struggle amongst entrepreneurs in the early stages of their companies is lack of funds in both their business and personal lives. Here are some unique ways you’re able to make and save a couple of bucks.
Airbnb. This is an awesome way to make cash fast and a good chunk of it. Airbnb enables you to rent out a room or an entire apartment for a day to a week to a month. You get to set your prices and compare it against other renters in your area that use the service.
Loans. A lot of us out there are faced with the L word after college. If you’re like me and became an entrepreneur who could no longer afford the payments, you have the option of deferring. This just means postponing the payments until you think you’ll be able to start paying on them again. Although, beware that there is usually an interest associated with this option.
Assistance. If you’re at a breaking point, don’t be ashamed to get government assistance.
Getting Around
Entrepreneurs are always on the go and transportation expenses can pile up. Here are transportation solutions for you to consider.
Bike Sharing. Companies like Divvy are providing this awesome service where you can rent a bike to get around the city for pretty cheap. This is also the healthiest form of transportation since you’re getting a nice workout in the process. Make sure to check out the bike sharing options in your area.
Car Sharing. There are services like UberX, Lyft, Zimride, Sidecar, etc. where you can have someone in your area take you to your desired destination. If you have a car, you can also utilize this service to make money in between meetings.
Parking. If you have a car and get stuck driving and need a convenient parking spot at a discount, use Spothero.
Rental Cars. If you need transportation for a longer period of time, you can use services like Zipcar or if you’re travelling to another city to close a business deal and need transportation, use RelayRides. These aren’t your cheapest option so find people you’re able to split the costs with like business partners or friends.
Public Transportation. If all else fails, use good ole’ public transportation. It may take a bit longer depending on where you live and the length of your commute but trains and buses can be great places to reflect or get work done if you can get a seat.
Business Resources
As entrepreneurs, we typically don’t have access to resources in the early stages that are available to larger companies to help accelerate growth. These are great resources to help keep growing.
Free Classes. As an entrepreneur, everyday you’re learning something new but if you want to become more advanced in a certain skill, there are plenty of free classes you can find on websites like Dabble, General Assembly, or Udemy. If the classes aren’t free, they are usually reasonably priced and consider it an investment.
Free Networking Events. I try to go to at least one networking event per week. Not only does it inspire me to keep pushing ahead by meeting amazing individuals that are also fighting the good fight but it’s a great way to let people know about your business. I typically look through BuiltIn, Eventbrite, and Meetup to find events that are of interest to me.
Hire Someone. Going the DIY route can only work for so long but there is a point as an entrepreneur when you’re stretched way too thin to the point that you’re interfering with the growth of your company. If you’re at this point, it’s time to delegate tasks. You can either barter for service in exchange for something you can provide or outsource. If you have a trusted and inexpensive resource for outsourcing, please share in the comments.
Keep up on the times. Now more than ever it’s easy and free to stay knowledgeable about what’s happening in your industry. You can subscribe to publications, blogs, Google alerts, follow your favorite influencers on Twitter, etc.
Winin’ & Dinin’
In your budget make sure to include a section on eating. It’s easy to succumb to poor eating habits like not eating at all but your body needs fuel. A happy hour here and there can do you good too.
Grocery Shopping. Going out all of the time is one of the easiest ways to blow through cash quick. Instead, make sure that you go grocery shopping and cook most of your meals. Also, save money by using coupons. Some of my favorite places to shop are fresh produce markets like Stanley’s, Trader Joe’s, or Aldi (which sells a ton of cheap gluten-free products).
Going Out. There are many websites out there dedicated to helping us broke folk find cheap to free eats and drinks. My personal favorites are Broke Hipster or Metromix.
BYOB. My friends and I like to get together at least once a week, which can get pricey especially when you add on the booze. There are tons of amazingly cheap restaurants through the websites above that well with a nice cheap wine because they do exist at places like Walgreen’s, CVS, or my favorite, Joe’s Wine Cellar (who also offers weekly wine tastings)
Treat Yourself.
There were many times when I was barely making ends meet but even when it got really tough, I treated myself to something nice here and there as a warrior reward.
Haircuts. Don’t underestimate student school’s like Paul Mitchell or Aveda, many may be students but already have a ton of experience. You can score a haircut between $10-$15.
Shopping. I’m an avid thrifter and thrift all around the country. You can score anything from high end clothing to appliances to furniture at a thrift store in good condition. You can also donate to get a tax write off at thrift stores like Goodwill. Find the best thrift stores in your area on Yelp. If you’re in Chicagoland I recommend the following: Goodwill, Unique Thrift, Salvation Army, The Ark, Village Discount, and Brown Elephant.
Media Consumption. With a ton of services being available on the Internet for free, why pay for it? Downgrade your music accounts like Pandora and Spotify. Also, ask family or a close friend if you can use their Netflix or Hulu account on occasion to get your fix.
Go the f**k to sleep. It’s easy to miss out on sleep when you allow yourself to. I fall victim to this whenever I’m under a ton of stress but it’s important to turn your mind off so it can reactivate and don’t make yourself feel bad for it. Remember, your company can’t run at an optimal level when you’re not at your optimal level.
Relationships
I’m not going to put any bullets in for this one because I feel like it’s pretty universal. Don’t keep your loved ones at a distance because you don’t think they’ll understand or you don’t want to burden them with what you’re going through. You need as much support as possible during this time so let them in and let them help you if they offer.
There you have it, broke entrepreneur. There are so many solutions out there for you and this doesn’t even begin to cover all of your options. If you have anything to add from your own experience, please share the wealth in the comments below.
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