Starting a new business can be a costly experience, and even in this modern age of virtual offices and remote working there are some costs that just can’t be avoided. Nevertheless, some new business owners fall into the trap of spending money unnecessarily and being forced to stint of the genuine essentials – this can be a fatal mistake in those fragile opening months of business.
Having a budget and sticking to it is one thing, but using that budget as smartly as possible is where you can really make a difference. Here are some ideas.
Without a business plan, you will be blundering in the dark and making purchase decisions based on gut feeling and guesswork. That’s never going to be a good strategy, so spending time and a little money on some good advice is an investment that will pay dividends. Carry out market research, or get a recommended expert to do it for you. That way, you will enter your first trading day knowing what your customers want and how much they expect to pay for it. This is the first step towards stealing a march on the competition and getting off to a flying start.
Assess the supplier network
There are some things your business can’t manage without, and top of the list will be basic IT equipment. The very thought is enough to strike fear into any new business owner, but there are numerous ways to reduce costs.
Think about different ways of procuring what you need, including purchasing outright, leasing or renting. Also look into the tax implications associated with each. Then there is the question of which supplier to choose. Your local business equipment supply company might be the one that all the other local businesses use, but is there a more cost effective way? Take a look at the online marketplace on the Probrand website, for example. You will probably find you can get the same things with the same warranties for a fraction of the price.
Be flexible in your budgeting
Your accountant, your business associates, even your mother will tell you that it is essential to have a budget. Nevertheless, many new startups fail to follow this advice, using the convenient excuse that there is so much uncertainty in those opening weeks and months that it is impractical to do so.
When you really think about it, however, surely this is a reason to be all the more conscious of your budgetary constraints, not to ignore them entirely. The trick is to have that budget constantly in the front of your mind, but to be flexible about how you are going to allocate funds over the first few months of operation.
The 21st century brings more options than ever for new businesses, and better choice means more ways to save money. Keep an open mind and view every business need from all the angles. That way, you stand the best chance of staying on budget and giving your new business the opportunity to succeed.