The passion you have for having your own business can very easily be crushed by the realisation of how much money it will take to make the dream a reality. Our list of tips is for all entrepreneurs who want to increase their chances of succeeding in business. Something as simple as commercial sheds or changing your marketing strategy could help you free up the cash you need to keep going.
Use Alternative Office Solutions
One of the biggest expenses for any company is buying, renting and maintaining a business premises. But there are multiple solutions that will cost you less than using traditional commercial spaces and they will work sufficiently until you have the cashflow to buy your own store or office.
Work from Home
You only have to look at the origin stories of Apple and Amazon to know that many successful business leaders started small, at home. They utilised residential properties optimally until they gained enough momentum to move to a more appropriate location.
So, clearly there’s no need to spend money on fancy offices from the start. Also, these days so many people work from home, so most likely no investor or client will find it out of the ordinary for a brand to operate from a residential address.
Use the Garage
While a home office is more than enough for certain businesses like consulting or an online store, you may need more space if you’re manufacturing and selling products from home. This is where your garage can come in handy. Parking the car outside is worth it if it helps you save on a few months’ rent while you scale the business.
Get a Shed or Container
While a guest room and garage come in handy, you may prefer having your business separate from the day-to-day activities of the household. It also helps you maintain life-work-balance if you can close the door on your computer and papers at the end of the day.
Entrepreneurs who do have some capital can convert custom sheds or metal storage containers into dynamic offices, simply by adding features like skylights, glass doors and roof ventilation. They can also be ideal for product storage when you add roller doors for easy access.
Such structures are durable enough for Australia’s extreme weather conditions, so you’re not putting your company at risk by storing documents or products inside.
Source Secondhand Items
From an office printer to equipment you need to manufacture products, don’t think you always need the latest and greatest! You’ll find there are quality secondhand items on sale if you do some proper research. As long as they’re still in good condition, using them won’t hurt your business idea and you’ll have cash left over to spend on other important items.
Create a Flexible Team
If your business plan does involve employing other people from the start, consider those who will be comfortable with flexibility in terms of payment and workload. For example, use freelancers or only offer part-time employment. It protects you from having to pay full salaries until you’ve grown the business.
Because these individuals usually want to secure long-term work, they’ll still aim to impress by delivering optimal work quality and productivity.
Take Time to Negotiate Terms with Vendors
If suppliers form an important part of your business, don’t settle for the first offer you get. Ask for quotes from multiple vendors and then either pick the most reasonable or use the information to obtain better terms. Just by asking about a bulk order discount or having a month longer to pay accounts can save money and help manage cashflow.
Start with Affordable Marketing Resources
You’ll be tempted to use the best marketing campaign to get the word out about your brand, but dynamic advertising is possible without breaking the bank. Smart digital marketing such as updating your website and sharing often on social media can do a lot to establish your presence in the industry. Once you have the cash, outsource to a marketing company.
Smart Outsourcing is Money Well Spent
While you can wait before employing a full-time marketer, certain roles are wise to outsource to the experts from the start. For example, if you’re not a trained accountant you’ll do well to outsource bookkeeping, so you have regular updates on cashflow, to make smart financial decisions instead of overspending.
These professionals can also help you obtain tax benefits that you may miss out on if you submit returns yourself.
Keep Minimal Inventory on Hand
To compete with established brands, you may want a large amount of stock on hand, but this requires expenses in terms of manufacturing, purchases and storage. Rather practice lean inventory management while you grow, which will also prevent your capital being tied up in products you have no guarantee of selling soon.
Last Words
For entrepreneurs, every decision will have an impact and it can seem quite overwhelming. Use these guidelines to help make informed decisions and sidestep common mistakes others have made.
Lastly, good luck on this journey!
