Those who are beginning a new business generally don’t have an unlimited supply of funds. So especially at first, there are some difficult decisions that need to be made with respect to keeping startup spending in check. Where is it essential to spend? Where can you save a few dollars here and there?
There are a few do’s and don’ts that might help you make sound financial decisions. The first and most obvious question is about office space. Should you rent an expensive property in a high-profile section of town for greater exposure and bragging rights, or should you find a more modest piece of real estate?
In almost every case, it’s not necessary for you to find the most expensive property for your business. In fact, in some cases you don’t need an office at all; depending on the products and/or services you offer, you may be able to work from home. Just make sure your employees are comfortable no matter where they are – and just as important, ensure that they have everything they need to do their jobs well.
The next topic? How do you get the word out that your company exists? Do you need a big ad agency handling your account? Should you stick with a smaller, more reasonably priced firm? Should you save money and do it yourself? While it depends on your level of marketing experience, of course, we believe a short-term commitment with a small firm is the best way to go. Why short-term? If you begin to grow rapidly, your needs will be completely different from what they are today. If not, perhaps they’re not doing a very good job, and you may want to take your chances with a different firm,
What can you do to increase your odds of success? You need to focus most of your attention on growing your business. Don’t be timid when it comes to paying for help, letting them do the “grunt work” such as HR issues, billing and the like. Your time is worth more growing your business than it is partaking in these tasks. Look for companies that will provide HR and CFO services … there are lots of them out there, and many of them are quite affordable.
Of course, you can do a lot of simple things, too. For example, shop around for the best prices on business items. These can be large things such as your office furniture, or even smaller things such as supplies. You can save a great deal of money if you don’t mind buying used office furniture, for example.
Here’s another way to save some funds: If your business has a product or service you can use to barter with, do it! Not only are you reducing expenses, you’re also building business relationships.
Finally, get your employees onboard with the idea of saving money. Perhaps they’ll think of something new. Maybe they’ll be a little more thrifty when they’re at the office if you place a special emphasis on cost-cutting.
Ari Page is the CEO of Credit Card Builders. See below for the webinars he is conducting specifically for readers of my newsletter, like you, this Wednesday.