Starting Out in Business

If you’re just starting out in business, one of the most important things you will need to manage are your limited financial resources.  This can be particularly challenging if you’re used to working for a company with a large budget that feels impersonal, whereas, when starting your own business with a much smaller business every dollar you spend feels much more pertinent and one step closer to ending up a precarious cash flow position.

In that vein, we’re going to take a look at some of the best strategies to save money in the early days whilst still optimising productivity.  After all, spending money of itself isn’t a “bad thing”. For instance, it’s better to spend money on social media marketing companies that know what they are doing rather than wasting money on doing social media campaigns yourself that are ill informed and end up not producing any results.

Therefore, it’s not about spending less and doing everything yourself – it’s about optimising the results from the money you do spend.

1.  START OFF WORKING FROM HOME

So many people when starting a business feel the need to go out and get an office, yet, this is a huge expense that often isn’t necessary – when you could just work from home, at your kitchen table or create a home office.  Alternatively, if you feel you “need” to be in an office space in order to focus, you could try hot desking and making using of flexible work spaces.

2.  DON’T HIRE STAFF (JUST YET)

Staff are helpful, and building a team to help you achieve your business objectives can be a very good strategy once things start taking off, as you can’t do everything by yourself – but hiring staff in the very early days is a recipe for disaster.  You’ll likely find yourself overstretched and given that staff tend to require somewhere to be housed, it means you now have two huige fixed costs of salaries and space.

In the early days you need to be as agile as possible, so hold off hiring staff, for a little while.

3.  DO IT YOURSELF

There are certain things within your business that might feel good to outsource, for instance, web design, and of course, going with a specialist web design company makes sense if you have the budget, yet there are plenty of ways you can do it yourself, in the early days in order to get started.

There are many things you can do yourself, from cleaning to basic accountancy and marketing campaigns – okay, you might not be the best at doing these tasks, but in the early days entrepreneur’s are required to wear many hats, out of financial necessity.

4. FOCUS ON VALUE CREATION

The one thing you must focus on is your ability to generate value to your customer; it can feel nice to get pretty business cards, a brand new suit, and a nice car to impress potential customers with… but none of this is necessary, the one thing that is necessary, is creating phenomenal value for your customer.  Focus on that, and the rest will follow.

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