Tips To Save Money in Your First Year of Business
Opening your own business is often a learn-as-you-go process that usually forces you to think in a new way.
1. Startup Business Tips
The more smart decisions you make early on, the better chance your company has for success.
Don’t allow excuses stop you
Countless people dream of becoming entrepreneurs, but they never do because they let fear of failure getting in the way. From money to time to responsibilities, the excuses are endless. Worrying about the risks is normal as being your own boss is scary but you need to seek solutions to what is troubling you and not let the fear paralyze you.
Don’t ignore the power of advice
You need to be a sponge and learn along the way from peers, business experts and veteran business owners. Smart entrepreneurs learn from the mistakes other business owners have made.
Start with the purpose
Your offering needs to solve a problem and fill a hole in a certain niche. Understanding why your business should exist will help you create a brand and market your company.
Account for the costs
You will need to factor in every business expense necessary to launch and operate. Then, take whatever you think that dollar amount is and quadruple it as unexpected costs will be around very corner so it’s better to be over prepared than short on funds.
2. Surviving Your First Year In Business
Few small businesses make much profit their first year as the saying goes: it takes money to make money.
Learn how to sell
One challenge many business owners face is that they don’t know how to sell. It can be intimidating to share your business with the world, especially when you’re new at it. All you have to do is fake it ‘till you make it. If you really want business success, you can’t afford to be shy.
Prepare for a rainy day
Ask yourself in advance- what happens if the business fails? Having a rainy fund will help you sleep at night as the promise of money is never as good as cash in your bank account.
Don’t get too excited about profits
Do not forget that you will need to pay quarterly taxes to the federal government and your state on any profits you make.
3. Cutting Business Costs
While most entrepreneurs focus on increasing sales, lowering expenses is just as important when trying to both achieve and maintain profitability.
Be a smart shopper
One great way to save is to shop and compare electric providers in your area to find a competitive rate. You need to remember that everything is negotiable, and you have the right to shop around for essential services.
Use passive energy saving measures
Replace single pane with double pane windows as they do a much better job at insulating your premises. If that’s too much of an investment for you, get light-blocking curtains to minimize passive heating on warm days and open them wide during cold days to maximize passive heating. Make sure you fix drafts and that your office is well sealed.
Eliminate phantom loads
In a white-collar office, personal computers workstations result in massive phantom loads so make sure they are unplugged when not in use.
Embrace home offices
Telecommuting has tremendous cost-cutting potential bringing you lower electricity and water usage along with a lower rent as you won’t be needing that much space.
Buy gently used equipment
Second-hand office equipment, glassware, cutlery and storage equipment that is in good condition will cost you far less while performing just the same.
Takeaway – Think of your new business venture like driving a car. Let your passion hit the gas pedal and your mind control the steering wheel. That way, knowledge gives you the confidence about the direction you’re headed, and the passion will sustain the momentum you need to get to your destination. Passion will move you forward, but knowledge will point you in the right direction so balance is key.
