Nothing is more important to the burgeoning startup as money. Passion, drive, and commitment might help you to success, but without a healthy balance in the bank, they won’t take you anywhere. It’s surprising, then, that so many startups are guilty of overspending.
It’s not much of a surprise. Part of the problem with startups is their image. You want to appear professional, so think that spending big on your image will help you look more experienced, and better overall.
However, when every cent counts, it’s important to have a firm grip on your cash flow. In this guide, we’re going to take a look at some of the biggest examples of where your startup is wasting money – and offering some alternatives.
You form a company, and want to act like the boss – it’s understandable. But is it necessary? Hiring employees is one of your biggest expenses. Not only do you have to pay staff a wage – even through quiet periods – but you also have contributions and benefits to consider. There’s training, too, and even the hiring process costs you in time and money. Instead, consider outsourcing to third parties. You only pay them a flat rate for the work they do, and you will find they get the job done far more efficiently.
We get it – your startup wants to be in the best location, with incredible surroundings. Join the club. But the truth is that these types of groovy, amazing workspaces all come at a cost you can ill afford. You are far better off starting out in your mom’s garage and ensuring you have a steady flow of customers before renting an office. Again, it’s just an unnecessary cost that will put you under a lot of pressure to get results.
Brand new furniture
Assuming you do rent an office, how are you going to fill it? Sure, you want the best for your business – and might be prepared to pay for it. But, according to arnoldsofficefurniture.com, new office furniture has high depreciation. So, spending large amounts of money on new tables and chairs might be unnecessary – and could even be senseless. Always look around for better bargains, and don’t feel like you have to spend a fortune.
We all want row after row of the latest Apple Macs in our offices. But can you honestly say they are necessary? It’s nice to have something to work towards, of course. However, you should never buy anything that is expensive without knowing for sure it will be worth it. Only spend money on what you need – nothing more.
According to inc.com, your focus as a startup should be on your customers. It is critical that you put everything into making them feel that their needs are being met. So, while it is nice to spend money on a flash new logo and lots of promotional products, all it does is make you feel special. But does it make your customer feel special? After all, it’s your clients that are contributing to your revenue and growth. You should focus on them entirely when you are just starting out.