3 Money-Saving Tips all New Businesses Need

Money-Saving Tips

 

It can be incredibly expensive to setup your own business, which is why over 75% of startups fail within the first year. There are many obstacles to overcome and many challenges to face, but it ultimately comes down to one thing: money.

The less you have, the less you can do and the sooner you fail. Money isn’t the solution and it isn’t the ticket to success, but while a lot of money won’t guarantee success, no money will guarantee failure.

With that in mind, take a look at these more affordable essentials to get your online business or writing/SEO company off the ground.

1. Get a Shared Office Space

Freelancers are well accustomed to working from home and shouldn’t have an issue if they setup a business that they also run from home. However, this isn’t always easy if you need to hire employees and those employees need to work in the same environment.

Most business can be run remotely these days, but it can make a massive difference having all employees under one roof, and depending on the type of business it may lead to a significant increase in productivity. Of course, what you gain from increased productivity you will lose in high office rent, but that’s where shared office spaces come in.

All known as “co-working spaces” these are basically on-demand offices that can be found in most major cities and offer many of the same services you’ll get in a traditional office, but for a fraction of the price and without any of the contractual commitments.

Take a look at this shared office Santa Monica page to learn more about securing a premium co-working space in a sought-after location.

2. Reinvent the Wheel

One of the biggest mistakes that entrepreneurs make is to assume that they need to do something completely unique, effectively creating a product never seen before. The problem is, if you introduce a new product in a new sector, then you’re also tasked with creating all of the demand. You have to tell prospective customers why it’s great, but you also have to tell them what it is.

This can be a very difficult thing to achieve. It’s much easier, and often more profitable, to tackle a popular and growing industry and to release a product that gets you noticed. If you can take a popular product, fix one of the issues that customers hate and offer it at a price they can appreciate, you have a readymade industry and a ticket to success.

Your goal is not to invent something completely new, but to take whatever everyone else is doing and to do it better. There are many ways you can do this, from making it more accessible to targeting as yet untouched demographics or simply finding a way to offer it for a more affordable price.

3. Focus on a Cheap Start-up

If you’re operating on a limited budget then the last thing you need is a business with expensive or perishable stock. You want something that you can take your time to launch in order to avoid costly mistakes, something that doesn’t require you to spend most of your budget on stock, and something that won’t leave you financially crippled if you’re not a success within a few months.

As an example, let’s imagine that your idea revolves around a ready-to-drink health product. Before you do anything you need regulatory approval, recipes and testing. You then need to source and purchase ingredients, before bringing it all together to create your stock. And because ingredient wholesalers and drinks manufacturers are only interested in large quantities, you need to do everything on a huge scale.

You then need to push your marketing like crazy and hope that everything works out quickly, otherwise those drinks will expire within the year and you’ll have lost everything.

On the flip side, let’s stick with the retail idea but suppose that you’re selling a dried powder mix made from a few basic ingredients. The mark-up will be much higher and the manufacturing will be much easier, so much so that you can make a few hundred products in your own home to begin with.

Those products will keep for a good couple years, and even if they expire you’ve only lost a small quantity. You can take your time, you don’t have to force anything, and very little of your money is going towards stock.

Where you sell is also important. If you’re selling to retailers then you’ll have a smaller margin, a higher risk, and you’ll need more product. If you sell direct to the customer you risk will be minimized, your margins will be maximized, and you will have much more control of your finances.

Leave a Reply

Your email address will not be published. Required fields are marked *