Terry, over at the Frugal Mommy Blog, recently asked me about my opinion on starting a business with today's economic concerns. First, let me say that I love her blog concept. As my husband and friends have always teased me about my "frugalness" - they say I'm cheap, I call it frugal - this blog is right up my alley! I was raised by a single mom for the most part, on a very tight budget, so this is ingrained in my way-of-life. My husband is in the mortgage business, so needless to say, we are in the same position as many families with a little less stability at this time, but that has really given us all that more determination to make this RuffleButts dream a reality.
I guess I am fortunate that I started the business when things were beginning to slow, so my expectations were set from that point on. I am extremely grateful that our business has grown consistently, despite these economic challenges and hope that we continue on this path. The biggest effect that I have seen on the business is the slow-down with many retailers. Although our retailers have been wonderful for the most part, I am finding that overall, retailers are placing smaller orders and are slower to pay. With that said, I believe that if you have a good idea and a strong business plan, you can find success in any economy. Just be realistic in your expectations, do your research, and make frugal business decisions.
Because of my frugal nature, it is always so hard for me to grasp the concept of spending money to make money, but I do completely understand the truth to this statement. I know so many of us start these businesses from home, trying not to spend too much of our family's hard earned money, and in the beginning every bit is a little painful (this was me!). For others, you are so ambitious and ready to do what it takes to make your business a success, you end up spending yourself into a deep hole. In my opinion, good business practices require a middle ground - you must spend, but spend intelligently, and I believe this applies in any economy.