Starting up is never simple, and the most hassled part is managing finances as there isn’t too much to begin with. But as an entrepreneur, this is one of the most important skills that you must master. While most expenses are unavoidable, some costs are controllable, and valuable money can be saved. Here are some tips to help you avoid spending too much in the initial stages of your company.
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Don’t buy a fancy office
Of course, you don’t have to settle for a shabby office either. Just the right amount of space to accommodate all your necessary equipment and enough to work comfortably will do. Avoid spending lavishly on an office space. The money can be used for bettering products or services which will appeal to the existing customers and also help you acquire new ones.
Avoid paid subscriptions services
Paid SMS and email subscriptions are only worth the money when you are absolutely sure of the target market. If you are a company which has just launched, you need to firstly define your target market and only then go ahead with these subscriptions. Until then, it is advisable to look for free/really economical alternatives.
Don’t invest in expensive equipment
Production equipment is different from office equipment. Ensure that you have great equipment for production, but you can always compromise on the equipment you use in office for other things. Fancy computers, printers, projectors and other such things are only overhead costs which you might regret in the future.
Outsource or hire interns
Hiring employees on a permanent basis involves paying them salaries. This task could be a problem when your company is still trying to establish itself in the market. Outsource your tasks if your business is not ready, or hire interns. Interns are hungry for experience and will mostly settle for minimal salaries. With a little training, they can prove to be a great asset to your company. Hire permanent employees only when your business is capable paying them.
Avoid lavish parties and frequent business trips
Big office parties and business trips work for big, established companies. While parties are fun, they can take a huge toll on your business finances since you have limited funds to start with. Also, avoid going on regular business trips until absolutely necessary, they will have you a ton of money that you can put to better use for the growth of the business.
Avoid expensive printing costs
Having business cards and business letters sounds a good idea, but this doesn’t mean you have to spend exorbitantly on them. Print only what is necessary, but focus more on satisfying your customers first. As for communication, use emails, voice chats and video chats.
Don’t buy customers
It is a myth that buying email lists and followers will help increase your client database. Even if the followers are legit, the convert rate will be very less. Most of the time, they even turn out to be inauthentic. They cost a lot of money and do you no good.
Learn how to manage your own accounts
Startup owners often think it is best to let accountants manage the company’s finances. This might be a necessity for a big startup but not when you are still small. Teach yourself how to manage your company’s accounts yourself. This way, you can save a considerable amount of your company’s money.
If you are a smart business owner, saving on the front end helps tremendously to focus more on customer service and product quality, which should be your primary focus when you are just starting off. Once your company’s starts earning a profit, slowly start investing in other services.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory)