Saving And Surviving When You’re Building A Brand
If you’ve had visions of yourself as a successful entrepreneur, cruising around town in your premium car or the latest Bentley SUV, but the stress and anxiety of a business start-up shatters your illusions on a daily basis, you’re not alone.
There are few things as hard as investing in a business, and the risk you’re taking by going all-in on a venture you have no guarantee will be profitable is often the reason why many people get cold feet. There are a few ways you can maximize your chances of success, though, and while we’re not suggesting you’ll be in the back seat of a chauffeured Bentley Continental GT within a few short months, there’s no reason you shouldn’t be able to be financially stable after starting your own enterprise.
Sticking to a business budget entails more than just counting pennies and hoping for the best though. See tips to cutting company costs below.
The Bigger Picture Of Business Budgets
Make sure you’ve done your homework - is there a need for the service or product you’re offering, and can you successfully market it? It stands to reason that a saturated market will be very hard to break into, so make sure the venture you want to start will actually take off. This means doing research, checking out the target market, and finding out who, what, and where your rivals are. This is also an opportunity to scope out competitor pricing and decide how you will charge in comparison.
Be Organized, Efficient, And Pedantic
Approach your new venture with a logical framework based on your research. Have a business plan that you can stick to, as well as a budget that you have had a professional (or expert) look at and adjust. Stick to this like glue - especially in the first year - so that your business will have the best chance of surviving. This also means doing the most at the least possible expense, and making sure that you keep detailed records of what you spend. This will enable you to track where your money is going, and effectively make changes if something goes wrong.
Prepare Yourself
You must’ve heard people say that being your own boss is hard - and the truth of the matter pertains to knowing that how much you put in is directly proportional to how much you get out, no matter the size of your project. And most start-ups don’t even begin making money in the first few years while they cover the expenses that have gone into getting the business off the ground. This means you will need to make sacrifices, whether that’s in lifestyle, time, or savings; make peace with the fact that you won’t be driving the latest coupe or crossover just yet, and if that means you need to settle for a base model or consider much more humble vehicles that offer better fuel economy and less horsepower, that’s what you have to do. Make sure you are prepared to not take a salary immediately. Ensure you have other income, or that you have enough of a financial buffer to support yourself during this crucial time.
Analyze, Adapt, Approach
Make a habit of constantly checking, evaluating, and scrutinizing all the processes, cash flow, and quality of your service or product. You need to be offering something worth paying for, firstly, and it needs to be sensible - you cannot be spending more on offering a product or service than your get back from your customers. If you’re finding there is a deficit somewhere, ask for help sooner rather than later. There are a number of professionals out there that are willing to offer business coaching or strategic input to help you make a success of your venture. Sticking with a plan that isn’t working won’t get you anywhere - rather review your performance regularly, then get on the right track as soon as you can, so you can reap the business building benefits in the long run.
Cut Company Costs
One of the biggest mistakes new businesses make is not sticking to their budget or being unaware of their numbers. Keep these top tips in mind to minimize excess spending that could mean the difference between business success and failure.
