When your business is a small business, it pays to watch every rupee. From conveyance costs to the junk food you are eating off the company rolls a small business entrepreneur stands to gain by not spending. Every drop adds to the ocean and judicious spending or non-spending can make the difference. After all a rupee saved is a rupee earned…Ego Spending- Letterheads, customized stationery and gilt edged visiting cards may make you feel like a big shot entrepreneur but it’s just your ego speaking. Cut the frills and curb the ego spending, when you make it big you can have all the frilly bits you want.
High end website- The expensive website with java flowing like hot morning Nescafe may make clients look but they won’t necessarily buy. It’s the white elephant of Small businesses so chuck that fancy website and go with something cheap but not cheap looking. Put your work out there and keep it simple.
Elephants- Speaking of elephants, remember the old saying “Haathi ke daant dikhaney key aur khane ke aur”. If you too are being pretentious and buying symbols of wealth like a new car, or a fancy office in a high tech building then you must lose the elephants, they do more harm than good. Be who you are and learn to manage. Entertaining the clients and spending lots of money on them is also a “no no”
Hiring- Hire according to what you need and not the latest trends. Make sure that your employees are all on the same page. Indian offices are prone to office politics make sure your new hire is not a useless spend or posterior kisser. It costs more to recruit and train again than making a solid hire that will last.
Branching out- Stick to what you know best. Sometimes when you have good cash flow you will feel like expanding but a good idea does not always translate into a good business idea. Research and experience are essential to making a business idea work and branching out is a needless cost a small business should avoid, unless you have tons of money to spare.