4 Start-Up Costs You Shouldn't Cut Corners On


Managing your finances properly is vital in any business, especially when you are first starting out. You’ll only have a limited amount of start-up capital and if you blow it all in the first few months then you are going to fold pretty quickly. So, you need to cut spending as much as possible, however, that doesn’t mean getting rid of anything that costs money. You need to strike a good balance between cost cutting and making sure your business will actually make a profit. There are certain things that you need to have if you are ever going to get anywhere, and they are going to cost money. If you get rid of these vital costs, you’ll never get off the ground, but what are they?

Registering The Business There are a couple of ways to register a business and some of them come with fees. Certain businesses also require licenses to operate legally. While it might be tempting to save a bit of cash by foregoing this process, the cost is likely to be a lot higher if you get caught operating illegally. If you don’t sort this out from the word go, it will be difficult to get registered later on without raising suspicion. 

Cyber-Security 

Cyber crime is on the rise and it can be devastating for companies if they leave themselves open to attack. It can be expensive, but you need IT support to help protect you against these kinds of attacks. They could affect you in a lot of different ways. They might take money directly from your bank, but they could also steal information about your customers. This massive breach of trust between you and your customers is going to damage your sales in a massive way. People are not going to be willing to deal with you again if they feel that it puts them at risk. Attackers could also crash your website which may lose you a lot of sales if you primarily sell your goods online. 

Website 

Most people already know about this one, but if you are trying to cut costs by not building a website, you should reconsider. Most customers find a business by searching online these days, even if they have been turned onto it by some other form of advertising. If they can’t find you online then they won’t bother finding you at all, after all, your competitors are just a click away. If you are worried about the cost of a website, there are ways that you can save money on it. Getting a professional company to build it for you is always best, but it isn’t always affordable. When you are setting up initially on  a budget, you could try building one yourself using a simple online tool. The site won’t be as good as a professional one and the functionality is limited but it’s a good stop-gap until you can afford to spend the money on a proper one. You could also think of it as an MVP, a Minimum Viable Product, for the time being.

Insurance 

Insurance is one of those costs that doesn’t see a return. From your point of view, it just seems like you’re paying out money every month for something that you are never going to use. Everybody says that until something does go wrong and they are saved from shelling out a lot of money. It isn’t worth the risk, so get some insurance.





I hope you enjoyed this article about startup expenses that you shouldn't cut out just to save a few bucks in the beginning.

Interested in more articles about business budgeting?

Read My Posts:

- 4 Tips To Save Money On IT Costs

- Financial Planning Strategies For New Startups

Published by Michael J Schiemer
Owner of Bootstrap Business
Money - Marketing - Motivation
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Mike Schiemer Builds Better Business

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