There is an old saying that goes something like this: “you have to spend money to make money.” I talk to people nearly every day that are in the situation of trying to make some extra money or start/grow a business and in doing so, they believe they have to “invest” a lot of money in equipment, advertising, etc. to make it work. This is often a bad idea that leads to unnecessary stress, debt, higher risk of failure and possibly even bankruptcy. So before you go out and buy a new computer to build that website or a new camera to start your photography business, I want to give some thoughts on ways you can truly make something from nothing and how you can grow your income without risking so much. Since you’re here, I’ll use Humorous Homemaking for my examples. By the way, most of what I’ll write applies to small personal businesses, but if you’re thinking of trying to make a little money from any endeavor, these principles will apply.
- Start small, but dream big. If you have been with us since the beginning, you know we only started the site as a response to people who kept telling us we needed to share Stacy’s couponing and homemaking skills with the world. It cost me a weekend of website coding and a total of $10.99 to purchase a website domain. We already had a cheap hosting account through bluehost because of the other websites I manage, so if we’d bought that it would have been another $6.95 per month. In other words, to start Humorous Homemaking, we invested a weekend and the cost of a moderately-priced restaurant entree.
- Don’t forget simple math. Revenue – expenses = profit. That’s the simple formula for every business to remember. Just like in your personal budget, if you want to make more money, don’t just look at increasing revenue. “A penny saved is a penny earned” applies here. While you need revenue to make money, you must minimize expenses to maximize profit. Don’t forget the math for personal and business finance is really that simple.
- Don’t try to be fancy. When we started, Stacy was using an old laptop that I had been issued for grad school (cost $0; part of tuition). We were able to borrow a better laptop for a while (cost $0), then we bought a used netbook (cost $150, sold for $150), and now we’re using a nice laptop we saved up and bought refurbished for $450. So our total investment in equipment has been $450 over the course of the 2.5 years we’ve been doing this. Not bad. We could have gone out and bought the nicest thing we could find, financed it and even claimed it as a business expense. But why bother? Is the end result any better?
- Be realistic. Every business should set goals, dream big and expect to win. But being unrealistic in goal-setting is a killer. Most of the time this results in someone jumping the gun and spending money before it comes in, expecting there to be profits to enjoy. Just like the old saying goes, “don’t count your chickens before they hatch.” I’d like to add to that, “don’t expect eggs unless you’ve got hens.” You must set a reasonable set of goals and execute on them. Grow over time and allow the spikes to naturally occur. We’ve had days where traffic was huge and others where it was pathetic. We’ve had days where ads generated a ton of money and others where they made nothing. We smiled on the good days and smiled on the bad ones, knowing we are on a long-term path of realistic, steady growth.
- Be grateful. The story of Job and his attitude toward everything crappy that happened to him is a great example. There will be good days and bad days in everything. Don’t forget Job’s words when everything was stripped from him (literally). He said, “The LORD gave and the LORD has taken away; may the name of the LORD be praised” (Job 1:21 NIV). When profits are up and things look great, praise God. When people hate everything you do and call you bad names, praise God. As long as He is receiving honor for your efforts, you can always be grateful in whatever happens. Remember, we are called to “give thanks in all circumstances, for this is God’s will…” (I Thessalonians 5:18).
Want more? Check out some previous posts on this very topic right here on Humorous Homemaking!
- 4 Ways to Creative Income
- How to Make Money Doing What You Know (series) – Part 1
- How to Make Money Doing What You Know (series) – Part 2
- How to Make Money Doing What You Know (series) – Part 3
- How to Make Money Doing What You Know (series) – Part 4
- Swagbucks – a Great (and easy) Way to Earn Some Extra Cash
Thanks for this. I’m also trying to do something from nothing and needed some reminders of the basics. Trying to be the tortoise in what seems to be an all-hare race can be grueling, but being in the hole would be worse!
And like the story goes….the tortoise always wins. 😉
What a well thought out article. I have a couple of questions for you. How did you and Stacy learn to do this? Do you design and setup websites for other companies? My husband’s company was looking for someone to do this. They have a website but it could use some improvement.
Thank you!
We’re both mostly self taught on things – we like to read and learn. 🙂 Yes, Barry does websites for lots of local businesses.
Thumbs up! Great advice. I whole-hearted agree. My hubby and I have decided that we will NOT go into debt for any new business venture. If God wants us to do it, then He will provide the means to do it without debt. If He calls us to do something then He absolutely has the resources to give us to do it.
Three of my favorite verses having to do with finance, resources and simple living are the following: 1 Tim 6:8 “But if we have food and clothing, we will be content with that.”
Eph 3:16 NLT “I pray that from his glorious, unlimited resources he will empower you with inner strength through his Spirit.” IOW, He has unlimited resources at His disposal to give to us as we live out His will for us and to accomplish that which He calls us to do.
And, of course, Jesus said in Matthew 6 “19 “Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal. 20 But store up for yourselves treasures in heaven, where moths and vermin do not destroy, and where thieves do not break in and steal. 21 For where your treasure is, there your heart will be also…31 So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ 32 For the pagans run after all these things, and your heavenly Father knows that you need them. 33 But seek first his kingdom and his righteousness, and all these things will be given to you as well.”
I have such peace because I know how much God loves me. I am like the Proverbs 31 woman who “laughs at the days to come” because the Lord is my Shield, my Protector and my life. Whom shall I fear?! I overflow with gratefulness.
Great verses!
Ah this inspires me. One of the things that recently stopped me from blogging more (halting some real growth) is our laptop’s keyboard does not work (well at least 5 buttons do not). We have a plug in one, but it is super annoying to use for various reasons.
Yeah…at one point the one I was using for free had to always be plugged up – but I found a nice comfy spot on the couch that was near an outlet. 😉