Some people have a great idea for a business – and the enthusiasm to bring it to life – yet it exists only in their mind. Why is this? It could be because, much as they would like to set up their own company, the attached costs mean it’s just not something they can think about realistically. However, the issue is rarely how much money you have; it’s what you do with the money that’s important. It’s more than possible to get your business underway even with a small amount of money, providing you’re keeping your costs under control. We take a look at how you can do this below.
Have a Realistic Understanding of the Costs
Everyone thinking about starting up a company needs to complete their business plan. Amongst other things, this will provide a breakdown of costs – you’ll have everything that you’ll need to spend in the initial stages listed right there, which means you’ll face no nasty surprises later on down the line. Once you’ve got the numbers all figured out, you’ll have to work hard to make sure that you’re keeping to the budget. If you take the advice we offer below, then you’ll have the ability to make significant savings; so, if anything, you might just be able to come in at under budget.
Find Out What Others Do
If this is your first time setting up a business, then it’s unlikely that you’re going to have all of your costs figured out perfectly. Nobody gets everything right the first time around! Business, after all, is a learning game. However, you can keep your costs sensible by piggybacking on the knowledge of other, more experienced businesses. You won’t be able to find out exactly how many pennies other companies spend, but you should be able to discover where they’re spending their money. For example, if a similar business spends, say, 15% on marketing, and you’re spending 35%, then you’ll know that your marketing budget is overblown.
There’s going to be a lot of things that you need to buy when you’re getting a new venture underway, but that doesn’t mean that you’ll need to buy everything all in one go. For many things, you’ll be able to pay in installments. Instead of parting with one lump sum, you’ll divide the payments over the course of, say, a year. You may have to pay slightly more for this option, but if it frees up money in the early days of your business, then it might be worth pursuing. It’s worth remembering, however, that this might not be the best course of action in the long term. Once you’re established, it’s usually worth making one payment and getting it over and done with.
Having said that, there will be incidences, even in the early days, when it’s worth paying for things all in one go. This is especially true when it comes to your workplace supplies. You can usually make significant savings by buying your supplies in bulk. If you know you’re going to be using them all, then it’s worthwhile buying them all at once if you have the space to store them, that is.
Working from Home
Of all the biggest wastes of money new entrepreneurs make, it’s renting office space before they need it. Even a co-working space might be overdoing it, though there are advantages to working in these types of places. No, to begin, start in your home. If you have a spare room, then all you’ll need is a desk, computer, and a printer, and you’ll be able to do the bulk of your work. Though be aware that there can be drawbacks to working in your home; for example, it can be difficult to switch on and be productive, and then even more difficult to switch off at the end of the day. Take steps to get your “work head” on and then to relax, though, and you should avoid this problem.
The Office Essentials
Even when you’re working from home, it’s easy to fall into the old trap of getting ahead of yourself and kitting your office out unnecessarily well. And to be specific, this usually means the computer that you’ll be working from. Sure, no-one wants to work on a slow piece of junk, but equally, most people have no need for the high-end options offered by Apple and so on. So be sensible with your computer, and even consider going second-hand. You can always scale up when you can afford it, but you’ll feel a little silly if you outlay a lot of cash for a computer that you don’t need.