When people think of startups, they instinctively think of a cheap business that barely scrapes by and tries to save money on everything possible. A startup might hire only a few employees, they might use cheap advertising services, or they could even have a DIY approach to everything from search engine optimisation to digital promotion.
However, being a startup doesn’t mean you have to be cheap. In fact, many people confuse the term cheap with the term frugal. Frugality is all about gaining value. This means stretching your pennies and it doesn’t mean spending the lowest or nothing on a service. Being cheap, on the other hand, means you always go for the lowest cost option. For a business, this means paying for the cheapest web hosting, paying for the cheapest outsourced services and buying the lowest quality materials for a product.
You don’t need to be cheap to run a startup. What you need instead is value. You need to have an eye for quality and you need to know how to stretch your money.
Don’t be afraid of using professional services
If you want people to take you seriously then you need to use professional services. A great starting point is to hire a lawyer. Startup owners think that because they aren’t very well known and haven’t attracted much attention, they can afford to skimp on essentials that larger businesses use. Lawyers are known for their ability to help you fight legal battles, but they’re also essential for giving advice. For instance, if you’re currently managing your own finances and doing your own bookkeeping, then you may need an attorney to help with small business tax issues. Tax is a major concern for all startups and without a dedicated financial advisor, you’ll have trouble managing your tax payments and expenses.
Plan for continuity
A startup can be seen as an innocent business trying to make it big. However, that doesn’t mean hackers, fraudsters and other malicious individuals won’t target you. The more vulnerable your business is, the more likely you’ll become the target of an internet scandal or hacking attempt. In addition, small businesses often feel like they’re shielded from the problems of a larger business and as a result, fail to plan for continuity. However, when you have a good idea and a business that’s flourishing, you need to protect your investment.
Data security is a major component of any business that needs to be taken into account when you are setting up your computer systems and network. If you don’t take internet security safely then you may just end up as a victim of an internet hacking attempt. Furthermore, if we continue with the idea that startups are cheap, then your cheap hardware, refurbished computers or flaky network connection could corrupt essential business data and make your company unable to function. A great way to prevent this is to use cloud storage services to backup your data.
To summarise, there are times when you can be cheap and times when you need to spend money, but if it’s between paying extra for a more reliable service and paying minimum price for something second-hand or used, then always go for the more expensive option. It’s a business you’re planning, so treat it like the investment it should be.