In this first part of this series, I covered the importance of minimalism in personal finance. But what about when it comes to a micro business? Can a business really embrace a minimalist attitude to succeed? You definitely can.

Minimalism in Micropreneurship
Do you want to start your own business? Many individuals dream of working for themselves and being able to get out and make a start as an entrepreneur. But quite often a lot of people have the same reason for not making a start: "I don't have the money".

The reality is that starting your own business does not cost all that much. Websites can be set up at very affordable prices, clients can be reached using guerrilla marketing tactics, and services can be provided easily and efficiently. It all comes down to an awareness fact.

Step one: The minimalist computer
Software and computer accessories can be a big expense to setting up your business (especially if you don't have your own prior). I have a BenQ Joybook which is about a year old, which I bought because I had a mate who could get me it for $300 less than retail. You can setup a computer really cheaply by doing the following:

• Buy an ultra-portable laptop: These are beneficial as you are likely to be in more than one location and will want to work on the road. These laptops are affordable, have a long battery life and have most of the essentials (except a CD drive). If you need anything on top of the essentials, consider buying a cheap desktop to use at home with them in it.
  
• Install free antivirus: Why pay when you can get anti-virus for free? I am using a spare license a friend had, but there are a number of free anti-virus programs available online for free. Trent Hamm from the simple dollar uses clamwin for anti-virus, and AVG anti-virus is what I have seen used the most.
  
• Use free email accounts: Gmail is by far the best way to go here. If you haven't used it before, start a Gmail account today and try it out. You will never look back!
• Use free office software: OpenOffice.org software can be downloaded for free and takes up no space on a computer. This software works reasonably well. Another alternative is to use Google Docs, which is very basic but can get simple processing jobs done (nothing too fancy). For a calendar I use Google Calendar. All of Google's tools are now available with an offline mode, which allows you to do work on them while away from the Internet.
• Free Operating System: If you are restoring an older computer and don't have the money for Windows, you can get a free copy of Linux and burn it onto CD. I personally use windows for now.
• Media players: Windows media player is free with Windows but you can always use iTunes or Winamp as an alternative should you choose to.
  
• Better browsing: Although this is not related to cost getting Mozilla Firefox or Google Chrome is a much more efficient browsing experience than Internet Explorer in my opinion. Try them and make your own decision.
• Sell old items on eBay: Setting up an eBay and Paypal account is cheap, and you can sell old equipment (if you have it) to cover costs. It may also come in use later on as another income stream for a micropreneur.

Setting up your own website is vital to long-term business success. Even as a micropreneur, having an online presence outside of facebook and twitter begins to help you establish a place online where you clients and customers can make contact with you.

Websites can be setup with a minimalist style. Depending on your requirements, you can setup with minimalist overheads while still looking professional.

You can setup a website on www.blogger.com (such as this site) or using a www.wordpress.org platform (allows easier use of static pages for a site). Wordpress.org sites require site hosting, which initially will cost you about ten dollars a month. Also you will most likely want to purchase your own domain name, which is about another ten-fifteen dollars a year. After this you can essentially find a nice professional template online and add a few features. Before you know it, you have a website!

Once you get setup there are a few things you will want to do with your website:

• Make it the primary point of contact for people to reach you through (and include links to other sites you are involved in such as Twitter and LinkedIn).
• Setup any revenue streams possible. Initially the easiest way for most people to do this is Adsense (although it doesn't make much in my opinion). Any income that can help offset site expenses (such as domain name, web hosting) is a good start, and can possibly be increased to provide a portion of your income. Brian Lee from Genius Types covers some potential streams (from a blog) that got him to a stage where he was making close to $1,000 a month. Check out some of the potential streams here.
• Do a little site tweaking: Before announcing your site maybe take a little time to get some content up, get the layout to a point where you are comfortable, get some revenue streams, etc. I didn't do this but wish I had, as it might have helped improve my traffic much earlier on.

Step three: The minimalist office setup
Having a minimalist office is the next step. I personally have a laptop along with the following items (your setup may be different depending on your needs):

• A laptop backpack/bag: I use the Targus 15.4
  
  as my portable office. As I am constantly in different locations (due to travel for work, etc.) I like to keep my office portable. Having a bag allows me to effectively store all my items in one palace when on the move. As an additional bonus, both of the bags I use have a water resistant bottom, preventing my electrical goods from getting damaged.
• An external hard-drive: This was a recent addition for my office. I usually just use a flash drive, but am now in the process of uploading my songs to my computer to reduce space at home. This mainly acts as information backup.
• A Parker pen: A gift from my 21st birthday. Much more minimalist style than taking fifteen pens that don't work along with me.
• My notepads: Currently I carry two but am likely going to scale back to one. I use a Moleskine and an equivalent (one small and one large). These small one is for ideas and actions and for recording my working hours, whereas the larger one is for meetings, etc.
• One small book: I am currently reading How to be Rich by J. Paul Getty. It is a small book and I usually carry a personal finance book to read if I have the room.
• Mobile phone: Unlike most of my business associates, I don't use a phone with email capabilities at this point in time. Until I manage to get a better grip on my regular checking of email, I don't want to put myself in a situation where I can never escape it. My phone is just a cheap Nokia that I got for $150 over a year ago with $30 credit (it still retails for $99). I also try to avoid plans where possible so I can stick to limits I am comfortable with, and can discontinue my phone at any time should I require.

One other thing that might be of value is an Internet connection on a wireless card. I currently use Internet at home, but it would make a nice addition (however I would recommend purchasing later from business profits).

Step four: minimalist marketing
Businesses are built one customer at a time. Every business and every website start with one customer/client/subscriber, etc. but you can increase this number with some low-cost, effective marketing strategies. Some of the many minimalist (and affordable) ways of marketing are:

• Printing up business cards, and handing them out at various networking events.
• Creating your own networking events, either via meetup.com or with friends who are like-minded.
• Advertising on websites, blogs, etc. in the area of your target market.
• Running your own blog on your website (or making your website a blog).
• Offering something free in exchange as a call to action (ie: register to receive a free e-book).
• Giving first, asking for assistance second.
• Creating a flier you can attach to emails.
• Providing services to businesses for free in exchange for promotion and branding on their site or at their events, etc.
• Providing legitimate testimonials from previous customers who have experience positive results from your products/services.
• Developing sales copy that requires a call to action and using tactics such as scarcity/bonus/scarcity to achieve results (see an example here).
• Promote yourself among friends, family and any other networks you are involved with. If you are not promoting yourself, someone else will steal the limelight.
  
• Word of mouth advertising and marketing can make or break your business. Rather than trying to make your customer happy pleasantly surprise them instead with something over and above their expectations.
• Print ads: Classified ads, yellow pages, etc. are still used by huge amounts of people and still get results. They can cost a little if you have no money, but are a great way to start.

They key to minimalism as a micropreneur is to get the most bang for your buck, without making your system to complex to operate. Experiment and find what works for you, then put your effort and energy behind it.

Minimalism has benefits both in personal finance and micropreneurship (among many other areas). In part two I will cover minimalism for micropreneurship. Part one is focused on minimalism and personal finance.

Why minimalism for personal finance
Spending less than you earn is really the main way to improve your financial situation. By desiring less and being content with minimums, you can greatly improve your financial position. Please note, being content with the minimum does not mean being a miser, it simply means eliminating unnecessary wants and desires.

Quite often, I find myself wandering through shopping malls. While occasionally I will spend money on new clothes and/or lunch, I rarely purchase anything else. Gone are the days when I used to buy new playstation games every month and buy various pieces of junk. I have been able to carve my expenses (although still have a long way to go to perfection), and I am seeing the benefits of doing so.

Minimalism in action
How do you spend your time? Do you gain enjoyment and satisfaction from the little things in life? Enjoying life does not have to be complex.

My brother currently finds a lot of satisfaction on a Saturday by walking down to the local market in his area and buying himself three jams donuts. He is 35 years old and still gets satisfaction out of doing something that gives him some fresh air while allowing him to see and experience something he enjoys being a part of (local markets).

I personally began to embrace a more minimalist lifestyle (in some areas, not all) after finding Leo Babauta's blog Zen Habits. After spending a bit of time on zen habits, I cleaned up the clutter in my working environment and my bedroom, resulting in a much more visually appealing and satisfying lifestyle choice. To top it off, I am going to sell the old stuff that was in my room that I no longer use. This will help me begin to make some extra money (and a good way to start another potential micro business for some people).

By having less 'stuff' you will be able to begin to put the money you save on purchases elsewhere. Depending on what your goals are, this money could go towards debt repayment, and emergency fund or starting a micro business.

A side benefit
Another side benefit I have found from reducing the amount of stuff I buy is that I no longer buy to keep pace with the social norm. I buy things because I really want them, not because I think they will make me feel more accepted or appreciated by someone. This allows me to make more meaningful purchases which make me feel great about myself.

But I don't want to give up my stuff
You don't have to do things the same way I do when it comes to minimalism. The important thing is that you find what works for you. The best way to do this is to take the following steps:

1. Determine your goals: Figure out what it is you are planning to accomplish with reducing the expenses and unnecessary output in your life.

2. Review your current situation: Are you spending lots of money going out partying, or buying games/clothes/makeup that is not really necessary? I personally review my finances and notice I spend a lot of my income on food. I think I could probably save another $1,000 this year if I cut back my food purchases throughout the working week.

3. Find contradictions: If your personal situation is not in alignment with your goals then you need to take corrective action. I found this when it came to my health; I wanted to keep fit and look good. To maintain this level of health I needed to stop smoking, which not only prevents me from damaging my body, but allows me to save more money.

4. Monitor regularly: Finances are a funny thing. Once you begin to build up money in your savings account and investments, your confidence skyrockets. The problem is that your ability to buy bigger items increases too... as does your desire to have them. Also you might begin to slip up on smaller spending. Ensuring you monitor your progress and take corrective action along the way is important to continue momentum.

5. Share the love: Use some of the money and time you save with a minimalist attitude to begin spending time with your friends and family. Being able to show them the benefits of a different lifestyle along with the ways they can follow in your footsteps is a great way to help them get ahead. Lead by example.

In my next post I will share with you ways of embracing minimalism in micropreneurship, which is a great way to help reduce the time to profitability in new ventures.

Essentially RSS allows you subscribe to your favourite sites (such as this one). This subscription provides you with the latest updates from the site (also known as a 'site feed').

You can choose to subscribe via email or RSS. I personally use and recommend RSS readers. This is because RSS readers provide access to the content without having updates goto your email address.

You can set up an RSS reader that allows you to view the content of several of your favourite sites. Clicking the RSS button generally takes you to a page where you can choose the type of reader you would like to subscribe with, and how you would like to subscribe (try the one in this article for an example).

Benefits of an RSS reader
What are some of the benefits of using RSS reader over email? Although this might vary depending on your personal situation, I have found RSS to be beneficial to me for the following reasons:

1. Allows me the ability to go to one single place to read my favourite blogs, rather than going to multiple sites.
2. Provides me the ability to find information more quickly and easily, which I can then apply to my personal circumstances as needed.
3. Assists me to batch my reading of similar material, rather than reading it as soon as it comes in (I can leave it for as long as I like and come back to find what I have missed).
4. Reduces the number of emails I receive.
5. Increases my productivity and output (since I am no longer distracted in my email, allowing me to produce maximum results in minimum time)

to Moore Thought.

If RSS does not suit you, you can still follow updates via email or by visiting the site often. If it does work for you, then congratulations! You have now found another beneficial tool to assist you in filtering the information available to you.

Try using an RSS reader if you have not previously and comment on experience. If you have used an RSS reader before, then consider commenting on your experience with RSS, and if it has been useful for you personally.

Attitude and discipline have are vital to long term success. If you have been struggling and are looking for a quick-fix, then business is not for you. While there are strategies to help you temporarily get out of a bad financial position, long term changes need to be applied.

Starting a business to get out of your financial problems is not the best decision for most people. If you are struggling financially, I would probably recommend as a quick-fix two things:

1. Find a way to increase your active income (through employment).
2. Decrease your expenditure.

The more research I do into personal finance and entrepreneurship the more it becomes blatantly obvious to me that there is only one way for people to begin to become financially independent. The answer is simple yet not pleasantly received: Spend less than you earn!

Essentially, the way to do this is to do one of the following (increase income, cut expenses). The gap in between the two is what I call a savings buffer.

The Savings Buffer

Increasing savings begins to build your personal wealth. This savings buffer is primarily used for three things:

1. Building an emergency fund.
2. Paying down and eliminating debt.
3. Investing in assets that produce cash flow (shorter term) or cash growth (longer term).

Essentially by doing these three your begin to build a cash buffer, which is in between the two lines as follows:

Failure in beginning to build a savings buffer using these three techniques generally cause people to end up:

1. Using debt to fund emergencies.
2. Increasing debt levels.
3. Forgetting investments and losing income.

Their situation ends up looking like follows, in which the gap between the lines must be funded by debt to survive:

If you are in this situation, you can begin to follow the three steps to building the savings buffer to begin to take control of your situation. It isn't a quick term fix, but it does make a difference.

1. Building an emergency fund.
I have previously discussed emergency fund and how to make a start saving for one. I have yet to cover the mindset in great detail of having one however (maybe a future post). It certainly helps having money set aside for emergencies such as a car breaking down, etc. These prevent you from getting into further debt (whether you are or are not in debt currently).

The other major benefit however is the confidence that comes with an emergency fund. I hear people state with pride (myself included) how much they have saved and accomplished. Rather than whining about expenses, building an emergency fund seems to help restore confidence and allows people to feel renewed. I have many friends broke (or deeply in debt) and feeling depressed. As soon as they have their first $1,000 in the bank they are a new person.

Start towards building an emergency fund today! Begin to feel the confidence that comes along with having some cash in the bank for times of need and want.

2. Paying down and eliminating debt.
In the perfect situation, everyone would avoid debt and invest their money. However, it seems that most of us in the western world end up in debt financially at some point in time.

Student loans, car loans, home loans, credit cards are all ways that we begin to build up a mountain of debt. Unloading takes time but begins to free up more of your income, allowing you to further increase the gap in between your earnings and your expenses.

While a lot of people talk about good debt and bad debt, on a personal financial level there is no such thing! All debt is bad debt on a personal level. Take C.A.R.E. and begin to diligently eliminate your debt.

3. Investing in assets that produce cash flow and cash growth.
Notice I have put this third on the list. Without having an emergency fund at some level and being in control of your personal finances and your debt, I would not recommend a high level of sophisticated investing. However the basics are still needed:

1. Superannuation: If you are focusing on managing your superannuation contributions, then this is a good place to start.
2. Index and managed funds: If you want to give a little more focus on your investing, then consider gaining advice from a financial planner about index and managed funds for longer term investing, but make sure you make your own decisions.
3. Self Investment: Often overlooked, self investment is probably one of the best investments you can make on a basic personal financial level. Having a tertiary education of some sort is a great start. Reading new and thought provoking books, taking new classes, wearing quality clothes and presenting yourself professional all assist in improving both your confidence and your ability to earn more. Exercise is another great way of self investment.
   

With these three basics sorted on a financial level you can begin to look at other investments:

Cash flow investing:
Increasing your income slightly from various streams is a good way to begin to improve your financial independence. At a micropreneurship level, this might be consulting in your spare time, selling instead of buying on eBay, blogging on a topic you are passionate about, giving music lessons, writing a book, etc.

Anything that you can do that brings in extra income and has potential to expand is a great place to start, but get the fundamentals in order first. This is the micro to small scale end of the cash flow investing, and can be a great way to boost cash flow potential shorter term (it can be later increased by expanding potential of the business).

Bigger cash flow investments include investing in real estate that make a positive cash flow (paying more rent to you than you pay in expenses and repayments), Developing a micro business that takes minimal time commitment (think products over services where possible) and share portions that pay regular dividends.

Cash Growth Investing:
This is where big money is made. Cash growth is not focused on making small amounts of cash on a regular period, but rather on developing something that could be sold for a big, fat, one time cash payment.

You do not have to be the richest person in the world for cash growth investing. Some of the ways cash growth investing is done on a smaller level include:

1. Developing a business to sell (making cash from the sale of a share holding).
2. Developing housing and selling (rather than renting).
3. Renovations.

There are more too. Cash growth investing is a good way to make a lot of cash, but I personally think cash flow is more important initially, to ensure your financial security. A lot of entrepreneurs I meet and work with tend to have income from one main business, and then invest in property or other businesses for additional cash flow and cash growth.

The issue with cash growth is it is a one-time payment. If a one-time payment is high it can be great. However, if you cannot manage your money well then regular cash flow is more important. You can go into an infinite level of detail on which is better, but for now start with cash flow for security, then build big cash paydays.

The important thing to note is that without being in a solid financial position on a personal level, there is no point increasing your level of complexity and financial strain by entering business and investing. Start small, work diligently on your personal finances, then begin building businesses and investing to improve your situation.

Like all aspects of habit creation, making a start and gaining the initial momentum is the hardest aspect to starting a savings account. The first $1,000 is the hardest, but it gets easier with every saving deposited. Starting with ten dollars today puts you that little bit closer to developing a strong financial base capable of supporting you in future times of need.

Here is a list of 33 ways to find the money to begin saving for building your emergency fund. You don't necessarily have to implement all of these, and some may contradict each other slightly. However, just implementing a few of these steps should get you started on your emergency fund:

1. Don't order the suggested upsize on a meal, or the combo suggestive sell: With the average person buying take away 3 times a week. Savings: up to $7.50 a week or $390 a year.
   
2. Buy a smaller pre-paid phone credit charge: Rather than buying $50 dollars of pre-paid credit a month, opt for a $30 or $40 dollar plan. Find out what alternative ways you can contact your friends for less (ie: facebook, IM, etc.). Savings: $10-20 a month.
3. Take a drink with you: I always see the suggestions to brown bag lunch to work and rarely do it myself. I do however take a bottle of water from home rather than buying a drink when I can. This saves me a lot over a year (as I buy a lot of bottled water), but we will assume one bottle a day five days a week for most people. Savings: $10-$15.
4. Negotiate a discount on your banking fees: Australian students can waive their monthly fees by showing a student ID at their bank. For others this may take a bit of work. Ramit Sethi from iwillteachyoutoberich.com discusses strategies for doing this over at his blog. Savings: $5 per month.
5. Ask for a discount: This is something I forget to do, but it does work some of the time. I once saved $30 on a $160 laptop bag because I asked for a discount. Savings: $10 per month.
6. Sell your old items: I have a friend who recently bought a new car (his old one is still off the road and needs some work). I suggested he sells this car and pockets the cash. You might have smaller items around your house you could sell, or give away to charity. Savings: $0+.
7. Setup an automatic transfer from your pay: This is how savings became known as paying yourself first. You are paying money to another account which you own (like any other bill). I personally put $50 a fortnight across ($100 per month) automatically, then more manually. It is up to you how much you put in automatically, and ultimately depends on your discipline.
8. Buy smaller bottles of soft drink around the house: I have seen countless 2 litre bottles of Coke go flat before they are completed. Buy smaller bottles instead, which won't go flat, are consumed for a cheaper price. Savings: $12 a month.
9. Exercise daily: Even a small walk around the office block at lunchtime can make a difference. Improving your ability to exercise will result in decreased health expenses, such as doctors appointments, unpaid sick days, pills and other medication and loss of productive work completed: Savings: $15 a month.
10. Eliminate or control a vice: I quit smoking (see how here) and only really drink alcohol about once or twice a year. I still have a great time with my friends without a hangover the next morning, which allows me to get up and go to work. If you can't give up a vice, consider cutting back or other purchase options. My friends are creative and tend to buy cigarettes by the carton (rather than by the packet) which saves them about $20 a week. They also buy bigger bottles of alcohol rather than pre-mixed cans. Savings: $30 a week or $120 a month.
11. Buy petrol in bulk: Why pay ridiculous prices depending on the day of the week? Buy petrol on the cheapest day in your area and fill the tank up. If you don't have the money, begin by filling up as much as you can. Over time, you can pocket the difference (which can be more than 10c per litre.). Savings: $25 per month.
12. Reduce your car insurance expenses: This is one I still need to do myself. Some insurance companies will offer you a discount if you undertake a defensive driving course. Also, consider changing to a lower insurance option. Savings: $30-60 first year, increasing each year.
13. Become a micropreneur: You don't even have to start a micro business to do this one. One of my friends Dylan recently bought a computer for $200 from his mum's work. Six were available. Looking back he said he could have bought all six and sold five for $100 profit each. Could you do something like this? Savings: $2,500 per year.
14. Negotiate some expenses to be paid by work: I did this last week. I wanted to head over to Tasmania to see my relatives, and had to head over there to help with an event also. As a result, I managed to arrange my transport to and from Tasmania (based on the days I stayed there) at my employer's expense. A win-win situation for all parties. Savings: $150 per trip.
    
15. Use Public Transport: I use a lot in fuel when I drive around, but public transport is much cheaper. I can also use the time to write posts for this blog or to do some study or work, which means I get more done, increasing my income. Savings: $1,500 per year.
16. Set Goals: Having ambition is healthy. Obsession is not. Instead of worrying about results and outcomes, set goals and objectives to complete tasks so you no longer worry. Savings: time and stress (which can be allocated to earning more).
17. Cancel your gym membership: If you rarely go to the gym, an alternative may be to do gym at home. Cancel your membership and buy the basic equipment (some dumbbells and a bench press) if you really need to. You can use the equipment whenever you feel like it, and it can be sold when you don't want to gym anymore to recover some of the costs. Savings: $30 a month.
18. Buy during the sales: I just bought two brand new jumpers from Target two weeks ago at $5 each (both reduced from $40) because the new season clothing was coming. Savings: $100 a year.
19. Buy quality clothing: When possible I try to follow the motto 'pay twice as much, buy half as many' for clothing and related. Sometimes I will buy clothes when I can save (see above) but I generally buy clothes for quality rather than cost. This allows me to keep my wardrobe longer, as the fashion takes longer to go out of season on higher cost items and also the items last longer. Savings: $300 a year.
20. Buy movie tickets in bulk: I go to the movies a lot and really enjoy seeing a flick with a few mates. Buying tickets in bulk can save you a few dollars per ticket, adding up over the year. Savings: $3 per month.
21. Enjoy places without cost: When you have a day off, go to a park, the local market or the beach instead of going to the mall and spending. Take a cricket set, a football or some food to have a picnic and make a day out of it.
22. Network: Meet new people and overall have fun. It might not save you money, but you will have new opportunities, experiences and gain new friendships, while also conquering the ability to step outside of your comfort zone.
23. Buy second hand games: Although I don't play games anymore, this used to be a huge expense for me. Of all the second hand games I have purchased, I have never had one with problems. Savings: $15 per month.
24. Have a movie night: Get friends around to your place rather than going out. Save money on company, drinks and travel. Savings: $30 per week.
25. Invite people over for dinner: Same as above but for dinner. Savings: $15 per week.
26. Hold yourself accountable: There are many ways you can do this. Start a blog and post your results, track spending on paper or on the computer, begin to set budgets and put them on your fridge. Once you have monitored for a time, eliminate wasted and unnecessary expenses: Savings: $10 per week.
27. Review your loans: Some people have loans that have HUGE interest rates. Many of my friends with unsteady employment have car loans (between $10k-20k) with 20-30% interest per annum. This is ridiculous. See if there are other options to change across to where you will pay a lower interest fee. Savings: $1,500 a year.
28. Car pool: A lot of people do this already. I have had feedback from people I have mentioned this to before along the lines of 'My friends don't live near me, they live closer to the destination than I do.' Simple solution. You are the driver. Accept it, and charge them petrol money, door fee and soft drink purchases to make up for it. Savings: $30 per week.
29. Buy a voucher book: Active people will easily recover their money for the cost and more. Savings: $50 a year (minimum).
30. Buy online: Not just items on eBay. Music, movies, office equipment, clothing and more can be purchased online cheaper than in a retail store. You can apparently order Domino's Pizza while playing World of Warcraft if you don't want to stop playing games to purchase online. Savings: Unknown
    
31. Haggle for extras: This is especially true when buying a computer. Some companies don't make much money on the computer itself, so there is little room to budge on price. Extras sold with the computer however might be more flexible of price. This applies to a number of different purchases however (ie: cars, suits, etc.). Savings: $100 a year.
32. Make it competitive: I like to compete, and have a few friends that compete with me. We all started with nothing in savings and are competing to see has more savings and more businesses up and running. Currently we about equal with results. Competing may give you the motivation you need to achieve goals you would otherwise not make a sacrifice to accomplish.
    
33. Accept their offer: If someone offers to buy you something, swallow your pride. If they genuinely want to pay they are offering to save you money. Be humble and accept it (then let your savings reap the benefits).