Saving has constantly been an obstacle for me. While I continuously bid the pay-yourself-first principle to my financial resources, I struggled to stay with my budget plan.
So when I wished to start a cake-decorating company, I required an additional way to cover my startup costs. I favored not to take out lending because of passion costs.
What’s a Sou-Sou?
A sou-sou is a straightforward savings plan.
The West African practice, which is likewise popular in the Caribbean, calls for a team of individuals to contribute a set amount of money either weekly, bi-weekly, or month-to-month to a team account, with one participant responsible for gathering the money.
The group holds a random draw to establish how everyone will receive their lump sum repayment. However, when each person gets their money, they still need to contribute till everyone gets paid.
A sou-sou can compete for six months or approximately a year– everything depends upon the number of individuals are in on it. Sou-sous continue till every person obtains a payout at the very least once.
How I Used a Sou-Sou to Begin a Business
Below’s how I began a sou-sou to assist me in making sufficient money to obtain my cake-decorating service off the ground.
Determine How Much Cash You Need to Begin Your Business
I created a supply of materials I would require after I computed the entire cost of purchasing them. This assisted me in making sure I’d be able to start as soon as I obtained my payout.
Next off, I searched to locate the best rates and then asked vendors about a discount rate for wholesale. It never hurts to ask! It aided me to save 20% of the original price when I ultimately got every little thing.
Find Cash in Your Budget and Get Extra Money
I needed to liberate some money to approach my sou-sou, so I determined to remove one bill from my monthly budget.
I compared my cord and web expenses to see which was costing me much more and, after that, canceled my $50 monthly cable solution.
To earn added money, I offered cakes at area events at a decreased rate.
Consider how you can gain a couple of extra dollars a month for your service. Consider this checklist of 43 methods to conserve cash quickly.
Form a Group
Every person in my division had previously been involved in a successful sou-sou, and since we were all pursuing economic goals, it was straightforward for the team to get on board.
A total of 10 coworkers signed up with the sou-sou, yet you can begin one with various people. Ask associates, family members, and fellow church or gym participants if they desire in.
Choose a Cash Collector
We nominated my supervisor as a cash collection agency and put our money in a locked box in her workplace. Two people needed to exist when cash was deposited or paid.
Given that most of us gained regular monthly incomes, we decided on a deadline for every person to compensate.
My supervisor was also in the sou-sou. If the person accumulating the cash isn’t known, they’re sometimes paid a percent by each participant. If my supervisor hadn’t been a member, she would undoubtedly have obtained 5% of our profits for managing the sou-sou.
Decide on a Reasonable Contribution
We considered our final objectives and unanimously decided on a sensible amount each person would pay.
With 10 participants, we decided to add $100 each month– suggesting we’d each get a $1,000 payment.
A few participants could not add the total, so they accompanied an additional member per contribute $50 per month. When their payment time came, each person received $500– a 50% payout.
I chose to double my payments and pay $200 a month, suggesting I would undoubtedly obtain 2 $1,000 prices to assist my business.
Propose Accountability
We suggested that everyone in the team be liable to an additional participant to ensure they invested their money to fulfill their objectives.
For example, I chose a responsible partner who would undoubtedly see that I invested my $1,000 in my organization.
If I did not, I’d have to pay my partner 20% of my payment– a huge quantity we picked to assist motivate me.
How My Sou-Sou Worked Out
Our sou-sou started in January as well as I obtained my payout in May. Because I doubled my payments, I got one more payout in November, which I likewise put towards my service.
The team effort was a substantial part of my inspiration, as well as every person, agreed that having the support of other participants of the sou-sou was crucial to our success.
My selection to utilize a sou-sou rather than secure a car loan settled. I did not owe the financial institution any cash, as well as I conserved $200 I would undoubtedly have paid in passion charges.
With the help of pals or family members, conserving money to begin service is feasible. Making $100 or $200 contributions might not seem like a lot, yet with time, it could be enough to obtain your service off the ground or help increase it without lending.
