Starting a new business is a thrilling prospect, but the leading reason so many fledgling businesses fail is due to financial losses. If you are starting a new business, you might want to seriously consider this fact and prepare for the initial two to three year period where you probably won’t see much of a profit. They say that forewarned is forearmed and, as such, you really can make a go of a new business if you understand the key ways to keep costs manageable during those early days.
Many entrepreneurs are so excited over the prospect of starting a new business that they jump in head first. They are so sure they have found their niche in the market and have identified a need which isn’t being met that they invest heavily in such things as rented office space. One key bit of advice is to start small. If at all possible, why not set up your office at home? Don’t order things like office supplies in bulk because that is money which could be invested elsewhere. Buy and rent only what you need and you will free working capital for those unexpected expenses that always pop up.
Another key piece of advice is in terms of hiring people for jobs which can easily be outsourced. If you find that you have more work than you can manage alone, why not hire a virtual assistant online who can do everything from correspondence to setting appointments? So much is resting on your shoulders that you find you can’t possibly get it all done timely. A virtual assistant is much more cost effective than hiring a salaried employee and can handle literally all the very same tasks you’d expect from an office manager. Virtual assistants don’t require benefits packages, which is another huge way of cutting costs for your startup. You can find out what virtual assistant services may be suited to you at Mushroom.
Buy or Lease Only What You Need
This may sound like a simple thing, but if you consider all the finance charges you accrue, you’d see that you are paying more than necessary. Cut financial charges wherever possible by purchasing or leasing only what you absolutely need. In other words, don’t project what you ‘may’ need next month if it means taking a loan or buying with a line of credit. Those finance charges can quickly eat into any profits you may have realised, and that can lead to disaster if left unchecked. Making those repayments can be difficult enough, but if you bought or leased based on projections rather than current needs, you could quickly get in over your head.
There will be time enough for that flashy office later when your company is on solid ground. For the time being, it is imperative for your startup that you minimise expenses at the very beginning. However, don’t take on more than you can handle. Personal assistants are the most cost-effective way to get tasks done, freeing you for other, more pressing jobs. The key bit of advice when starting out is to start small and dream big.