Leaving your job, escaping the rat race and starting up in business for yourself is the dream for many people, and thanks to modern technology it has become a very real possibility for more people than ever.
That said, it is still a risk; it takes planning, determination and more often than not some capital to get it off the ground. But if you don’t have money to throw around, that doesn’t mean that you can’t start up your business whilst minimizing the costs and the risks.
Here are some ways that you can keep costs down by carefully managing your finances and keeping your currency liquid.
Don’t Bother With Stationery
This point is both literal and figurative. Many first time entrepreneurs do actually rush out and waste valuable money on things that make them feel more like a legitimate business; business cards, letter heads etc…
This isn’t always limited to stationary either. But whatever your business, the key is to think carefully about each cost and ask yourself whether you could make do without it. Are business cards truly vital to your customer acquisition plan? Or do you just want them to feel good?
Don’t Bother With Stock
Generally, the more stock you buy the cheaper you get it. This is great for margins, but it’s not a good reason to go out and spend a fortune on stock before you have even made your first sale.
Once you have bought your stock you might find that it doesn’t sell. Fashions can move on and technology changes. What if the exchange rate moves favourably and you miss out on savings? (For more advice on currency risk and the latest exchange rate info, check out this currency converter widget)
The point is that you can’t really be sure about what will happen after you buy your stock anyway, and tying up your finances in mountains of stock is bad for business.
Start off with small stock holdings, but little bits and accept that you might not make as much money right away; figure out what sells and iron out the kinks before you invest even more of your hard earned currency.
Don’t Bother With An Office
An office can generally serve one of two purposes:
It can be a refuge where you can go to avoid the distractions of working from home. In this instance it may well be money well spent if it helps you to be more productive, but when you are first starting up, can you really afford that extra cost? Is it justified, or could you just be more disciplined and keep working in your spare room?
The second use of course is if you need somewhere to bring potential customers, and in this instance maybe your spare room just won’t cut the mustard (this is only like to be an issue if your business model involves a lot of local marketing of course). But think carefully before committing, there might well be virtual office options which are cheaper and will allow you to use a meeting room on the days that you need one.