Saving has at all times been a problem for me. Whereas I constantly utilized the pay-yourself-first precept to my funds, I struggled to stay to my finances.
So after I needed to start out a cake-decorating enterprise, I wanted one other technique to cowl my startup prices. I most well-liked to not take out a mortgage due to curiosity fees.
A co-worker advised beginning a sou-sou.
What’s that? you’re questioning. Properly, learn on.
What’s a Sou-Sou?
A sou-sou is an easy financial savings plan.
The West African custom, which can also be widespread within the Caribbean, requires a gaggle of individuals to contribute a set sum of money both weekly, bi-weekly or month-to-month to a gaggle account, with one member liable for accumulating the money.
The group holds a random draw to find out the order during which every particular person will obtain their lump sum cost. Nonetheless, as soon as every particular person receives their money, they nonetheless should contribute till everybody will get paid.
A sou-sou might run for six months or as much as a yr — all of it is determined by how many individuals are in on it. Sou-sous proceed till everybody receives a payout at the very least as soon as.
How I Used a Sou-Sou to Begin a Enterprise
Right here’s how I began a sou-sou to assist me make sufficient cash to get my cake-decorating enterprise off the bottom.
Decide How A lot Money You Must Begin Your Enterprise
I created a list of provides I’d want, then calculated the full price of shopping for them. This helped me ensure that I’d be capable to get began as soon as I acquired my payout.
Subsequent, I shopped round to seek out one of the best costs — then requested distributors a few low cost for getting in bulk. It by no means hurts to ask! It helped me save 20% of the unique price after I ultimately purchased all the pieces.
Discover Money in Your Price range and Earn Further Cash
I wanted to liberate some cash to go towards my sou-sou, so I made a decision to remove one invoice from my month-to-month finances.
I in contrast my cable and web payments to see which was costing me extra, after which canceled my $50 monthly cable service.
To earn further money, I bought muffins at group occasions at a decreased worth.
Think about how you possibly can earn a couple of further {dollars} a month for your online business. Think about this listing of 43 methods to save cash quick.
Type a Group
Everybody in my division had beforehand been concerned in a profitable sou-sou, and since we had been all working towards monetary targets, it was straightforward for the crew to get on board.
A complete of 10 colleagues joined the sou-sou, however you can begin one with any variety of individuals. Ask co-workers, kinfolk and fellow church or gymnasium members if they need in.
Select a Money Collector
We nominated my supervisor as money collector and positioned our cash in a locked field in her workplace. Two individuals needed to be current when cash was deposited or paid out.
Since all of us earned month-to-month salaries, we selected a deadline for everybody to pay up.
My supervisor was additionally within the sou-sou. If the particular person accumulating the money isn’t in on it, they’re typically paid a proportion by every member. If my supervisor hadn’t been a member, she would have acquired 5% of our earnings for managing the sou-sou.
Resolve on a Cheap Contribution
We thought of our last goals and unanimously selected a sensible quantity every particular person would pay.
With 10 members, we determined to every contribute $100 monthly — which means we’d every get a $1,000 payout.
Just a few members had been unable to contribute the complete quantity, so that they joined with one other member to every contribute $50 monthly. When their payout time got here, every particular person acquired $500 — a 50% payout.
I made a decision to double my contributions and pay $200 a month, which means I’d get two $1,000 payouts to assist me fund my enterprise.
Suggest Accountability
We advised every particular person within the group be accountable to a different member to verify they spent their cash on fulfilling their targets.
For instance, I selected an accountability associate who would ensure that I invested my $1,000 in my enterprise.
If I didn’t, I’d should pay my associate 20% of my payout — an enormous quantity we selected to assist encourage me.
How My Sou-Sou Labored Out
Our sou-sou started in January and I acquired my payout in Could. Since I doubled my contributions, I acquired one other payout in November, which I additionally put towards my enterprise.
The group initiative was an enormous a part of my motivation, and everybody agreed that having the help of different members of the sou-sou was essential to our success.
My selection to make use of a sou-sou relatively than take out a mortgage paid off. I didn’t owe the financial institution any cash, and I saved $200 I’d have paid in curiosity fees.
With the help of associates or household, saving cash to start out a enterprise is potential. Making $100 or $200 contributions might not look like a lot, however with time, it may very well be sufficient to get your online business off the bottom or assist increase it with no mortgage.
Editor’s notice: This publish was initially revealed in 2016.
Kerry Mc Donald is a contributor to The PNW. Freelancer Kent McDill contributed to this report.