Spend Or Save? Where To Put Your Money When You First Start Up

August 3, 2017 10:09 pm

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Starting out on your own in business comes with a lot of different responsibilities. Not only do you have to have the business idea in the first place, come up with the plans and know how to get started, but you’ve also got to raise the cash to get going too. Whether you’ve saved up your own money to launch the business, or you got an initial investment, you still need to work out just how you’re going to spend it.

In business, there are always things that can warrant your money. But, there are some areas that are more important than others. So, as you start to work out what you need to get your business off of the ground, you should start to allocate some budget to specific things. If you’re not too sure where you should be investing your money when you first start out, you need to think in two different ways, where the money should be spent and where you can look to cut back.

Spend

When it comes to the things that you should be spending your money on, you’re going to want to make sure that they count. These are the things that should have a direct impact on your success, so consider some of these for your investments.

Your Marketing

When it comes to your business making money, you need to be able to market your services or products to draw in your customers. This is definitely something you shouldn’t scrimp on. Although you may not want to spend unlimited amounts of money, there are some key marketing investments that you may wish to make to benefit the start of your business, like paid online activity. Your marketing can often determine the success of your business, so invest wisely.

Sales

Following on from marketing is also the idea of investing in sales. Again, in order to drum up business, your sales process needs to be seamless. Unless you are an experienced salesperson, you’re going to want to get the right person or company to do this for you. To get your sales process right from the outset, you might like to think about outsourcing work to a specialist, or hiring your own salesperson.

Your Website

Next, there’s your website to think about. Regardless as to whether you’re selling a product or a service, or what industry you are in, your website will be important to your success. It’s a great information source and can often generate you sales too. You need to make sure it looks right and sets the tone of business. So make sure you get the right graphic designer in for the job.

Health & Safety

You should also think about the health and safety aspects your business needs to cover off. Again, it doesn’t matter what your business does or what industry you operate in, there are certain things that your business will need to cover off with regards to health and safety, and you need to get them right by law. So, look into health and safety outsourcing solutions that can help you. Unless you’re an expert in what needs to be done, you’re better off leaving it to the professionals.

Training

When it comes to training, you shouldn’t scrimp. If you want to run your business well from the start, you need to make sure that you have every skill you need to make you better at running your business. It’s often the same with your staff. So, be sure to research the right training solutions and invest in the best.

Save

But then there are also the business areas that you should definitely think about cutting back on. Some things will require investment, but there are others that you can save a lot of money on by doing them yourself, including the areas below.

Your Finance

At first, your business finance may sound complicated. But it doesn’t have to be. Most of the time, as long as you’re tracking what you make and what you spend, and you have a paper trail for all of it, you should be fine. For this, you can get free accounting software and track it all yourself. This can save on expensive financial fees to start off with.

Your Admin

You should also aim to do the same with any administrative tasks that you have. Again, to start with, you can often feel like you have too much to deal with. You can have a lot of paperwork, forms to fill in, emails to send and errands to run. But, if you spend money on this now, you have to take it from a more valuable pot. So when you first start out, make sure to take on these tasks yourself.

Office Space

You may feel like you have to have a designated office space if you’re going to be seen as a reputable business, but that doesn’t have to be the case. There are so many home office designs that not only look professional but can help you to boost your productivity too. So save money on rent to start with and build your own office at home.

Employees

Don’t feel the pressure to hire people right away. You will know when you are ready to hire your first employee, but it isn’t something that you have to feel like you need to do right from the start. If you can handle the workload yourself at first, then hold off on the cost of another salary for now.

Your Technology

When it comes to your technology, you also may feel pressured here too. But don’t. At some point, you may need to have the latest gadgets and devices and leading software packages. But remember that right now you’re a struggling startup. You want to be focusing on channelling your investment into areas that are going to bring in more income, not cost you money. So, your old laptop and printer that you’ve had for years will be fine for now.

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