Regardless of the stage of your young venture, positive cash flow is always critical and cash can be very tight; especially in a pre-seed venture. Most of your money will need to be allocated for operative and administrative purchases and expenditures (e.g. insurance, interest payments on bank loan, etc.), which results in the need to plan your spending very precisely. This post is a list of tips where on how to focus on your expenses to keep the most in your pockets, for you to have successful start into your venture.
Trust suppliers that offer trials to their product
When setting up shop you will need to install the right tools that will help your business to function and open. Some examples are a bookkeeping, online storage, web hosting, etc. There are tons of suppliers for each of your needs, some offer multiple solutions, others integration amongst products. One thing you should look out for is the option for a trial and an upgrade feature. Start with a smaller version that you can upgrade over time.
Watch Sales and Hot Deals
Try avoiding buying list price on any item you need to purchase. Agreed, it is very convenient to purchase items online with a single click, but with a little bit of research you will most likely find deals on almost any item. Every dollar counts in a small company.
Seek out multiple quotes for amenities and services
Even the smallest of start-ups will rack up decent amenities bills (especially if your business involves manufacturing). It thus makes sense to do your research when it comes to electricity, internet and insurance providers. Aim to receive several quotes and different opinion on your needs. Companies try to you on things you may not need.
Here’s a tip that does double-duty both for the environment and your business budget: save on power! Start by giving your label-maker a work out by printing off some simple instructions to remind your employees to turn off lights and computers after leaving for the day.
Employ an intern or student assistant
Internship schemes or student assistant assignment present an ideal opportunity for start-up owners to get an extra pair of hands on board with no expense to the business, and free positions will be snapped up like hotcakes by university students and grads.
and you can keep up a continuous stream of enthusiastic young workers into the future.
Engage cheap marketingYouTube
Facebook, Instagram and are all free platforms which – if cleverly – can reach millions. The best news for you is that they’re totally free, so get your digitally-literate interns on the job, and watch your business’ reputation grow.
CAPEX vs. OPEX
Buying upfront vs leasing over time is a not-t-forget business expense. Yes, a monthly payment of a few dollars that meets the budget sounds like a very attractive opportunity, compared to a higher price tag when flat out buying. While this subscription model works well for some items, considering a purchase upfront for other items will save you in the long run. Check your options!