When you start a small business, generally, you are full of energy and willing to put in the hours to make it work, but do not have a lot of money to spend on the venture. What’s more, even if you have a budget, you should be very careful about how you spend it, in order for your business to take off without being burdened by unnecessary expenses.
There are many ways to get started with your new business without breaking the banks. First of all, many ideas barely require any capital. If you are starting to sell your services for example, you should mostly need a laptop and an online presence. Creating a website to showcase your offer to the world should be one of your very first steps when you decide to go in business. There are many sites that will offer free templates based on the kind of business you are starting, and will get you self hosted for under a hundred dollars per year. You need your customers to be able to find you, even though they don’t know you exist yet. Your website should have a contact number and email on each page, and sum up all the information you would like to find if you were looking for a similar business. Restaurant? we need a menu, pricing, and opening hours. Counseling practice? We need your area of expertise, and a calendar to book your slots online.
You should make it as easy as possible for people to hire you. So the next logical step is to have a way for people to pay for your services in just a few clicks. Using the same website providers, you can usually integrate an easy payment platform for a little premium. Some of them will even be free, and charge you based on the revenue you get. No income, no fees.
The next thing that is really worth spending money on when you start your small business is accounting services. You want to make sure you are doing everything by the book, and if you don’t understand accounting, you should leave that to a professional. Think about it. Who wants to spend hours trying to figure out all the intricate tax laws, when for a few hundred dollars, an accountant will file your return and allow you to sleep soundly at night? Just by showing you all the tax deductions you probably hadn’t thought about claiming, the tax professional should pay for itself.
When you made your business plan, you probably thought about all the expenses you would have before your business becomes profitable. Whether you are using your own funds or small business loans, you want to spend as little money as possible, while having an impact on the growth of your small business. Do you need a huge office? Maybe a coworking space will do, and then you can rent a meeting room if and when you need to meet with your clients. Or you could go to them at the beginning, which might be received as a sign you really care!
Yes, you do need to spend money to make money most of the time. But by being very conscious about the best use for your starting capital, you will leave more breathing room in your budget for unexpected expenses. These will happen for sure, and can break your business! It is wise to allocate part of your seed money to unplanned spending, as well as spending as little as possible where it doesn’t really make a difference.