You had an idea for a business and you ran with it. Good for you. Now the fun begins. Building a business from scratch is no easy feat, which is why not too many people are making the attempt. Making smart financial decisions is crucial throughout the life of your business, but takes on particular importance in the early stages. Here are just a few tips to get you started.
Bartering services with other business people can be a great way to save money, forge beneficial professional connections and get new clients. Reach out to other business owners you may know who may have a need for what you are offering in exchange for them giving you the service you seek.
If they are fellow budding entrepreneurs, they would probably be happy to do an exchange. For example, you may offer free consulting in exchange for having a website built.
Keep Spending to a Minimum
Bootstrapping is a common term in entrepreneur circles and with good reason. Funds are limited, and you have to be smart about where your money is going. You will be doing lots of things yourself at first. It is important to carefully consider whether a purchase is absolutely crucial right now. For example, you may be just fine working out of your house for now, so is there really a need to lease office space? Is there equipment you want to buy but know you really don’t need right now?
Take advantage of free software that will get the job done rather than shelling out cash for more premium versions you really don’t need. There are lots of free versions of tools you may use. For example, you can download this professional estimate for free.
You also want to consider spending habits in your personal life. The less money you need to live the less pressure you will feel. The less pressure you feel, the smarter the decisions you will make regarding your business. What can be cut down? What can be eliminated? Do you need to make a more detailed budget?
Spend Where It’s Warranted
While minimizing spending is a primary concern, this doesn’t translate to spend as little as possible at all costs. There will be times when spending money on something is warranted, and the smart move for your business. The investment is worth it, both in the short and long term.
Don’t skimp on things that can hurt your profitability. While you may not need the glossiest of websites to start, it is probably a good idea to invest in a designer who can give you something that looks professional, rather than going with the most basic of themes.
Don’t just go with the company that is providing the lowest bid for a service. If you are looking for a writer to produce content for your website, don’t just automatically outsource to India because someone will only charge five dollars, and be willing to settle for mediocre product.
Be smart about it.