If you’re putting together plans to start a business, then you’re probably discovering that it certainly isn’t cheap! Even if you’re renting a space and have a lot of helpful contacts in your industry, there’s going to be a lot to pay for before you start turning a profit. Despite the cold facts, maximising your capital is very important in the early days of any business. To help you out, here’s some advice for keeping your start-up costs low.
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First of all, try to stay as flexible as possible with what you’re planning to invest in. When you first sat down and started setting out a business plan, you probably had a very clear image of what you wanted your business to be like. Full time staff, incredibly affluent investors, and maybe your own private office dominated by a lavish oak desk. I hate to break it to you, but you probably won’t have all of that straight away! It may not feel great, but if you want your business to be successful you’ll have to make some sacrifices. If you wanted the most prestigious CNC machines on the market, try looking for cheaper alternatives. If you wanted your own office, consider the possibility of renting a shared space. If you were planning to have a full-time graphic designer, try looking for a less established freelancer. Any compromise, no matter how small, can make a big difference in the long run.
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If you already knew you weren’t going to over-spend, make sure you don’t lean too much the other way and scrimp on your start-up costs. While it can be a smart move to look for inexpensive options, the one thing you should never do is get taken in by “free” solutions. When it comes to business tools, anything free is almost guaranteed to be of poor quality. Accounting software, web design and marketing should all be invested in. Remember that you can always ask for discounts with a lot of B2B services. These companies understand that you’re a new business owner, and they know that if they offer a discount you’ll want to work with them later. Of course, if you have the skills and expertise to avoid paying for something then do it by all means. Just make sure you’re not spreading yourself too thin and neglecting more important things.
Finally, get into the habit of constant evaluation. Despite the name, start-up costs don’t just affect you in the start-up period. As your business grows, you’ll hit new challenges, and the need to save money will always be a constant. The best way to meet this need is to keep going back to your budget, and revising every little thing that could make your capital go further. Talk it all over with your accountant, or seek out advice from other small business owners if you can. You might have the most innovative product or service of the century, but if you don’t keep a keen eye on your numbers you’re certain to go under!
This article was provided by ellie jo