You’ll be undertaking something of a balancing act when creating your own business. Whether the funds involved are your own savings, you’ve been granted a bank loan or your capital comes from investors and shareholders, it’s up to you to make sure that a sensible amount goes to each vital area. But, of course, you only have a finite amount to work with – and no one wants to feel as if they’re cutting corners.
So, what steps can you take to ensure you always stay within your budget?
It’s important to distribute funds across your business in a sensible manner. You should prepare for this before you even apply for loans or investments, as the in-depth research you do should directly inform your budget. Study every area of your business and try to find precise quotes or educated estimates from manufacturers and service providers.
If you know anyone else who runs a business, ask for their advice. They may even be happy to show you their own original budget breakdown.
Once you have a clear idea about the costs involved in starting up individual elements of your company, you need to ring fence a specific amount of capital for each and stick to that arrangement. For example, make sure you don’t borrow from your marketing pot when building your finance department.
Think About Now and Later
Which expenses are vital, and which can be safely deferred? For example, if you’re thinking of launching a range of products, could you maybe start by developing and marketing one or two and saving the rest to be released once you’ve been going for a little while and understand the market a little better?
The same goes for your staff. Will you need a full team on the payroll from the off? Before you have a full complement of clients on your books, perhaps it’s better to take on freelancers and part-time employees. For example, there are many highly skilled SEO specialists available who can apply their skills and techniques on a freelance basis.
When you search for freelancers, you’ll need to be sure that they have the skills and industry know-how that you require. For example, your SEO specialist must be adept at intent SEO – an approach that focuses on directing relevant traffic, not just high volumes, to specific sites to achieve conversions.
Make sure you’re spending money only on what you need. Say, for example, that you’re looking into insurance for your business. Sometimes, the cover that is offered includes optional extras that cost more, and you’ll need to actively opt out of them to avoid the additional expense.
If you want these special features, that’s great – keep them. However, be sure to look through all offerings in detail for anything you don’t require that adds to the cost of the product. In doing this for every purchase, you could save quite a lot over time. Additionally, try not to be tempted by flashy new products and technologies that promise to boost your company’s productivity, sales or efficiency.
Is there hard evidence that implementing this thing will truly make a difference to you? Focus on the necessities first, then use any leftover funds for the bells and whistles.