Five Startup Killers To Avoid and Strategies for Lowering Your Costs
If you want your new business to succeed, you need to make smart decisions and be strategic. Here we share five business killers that you should avoid if you want your startup to be successful, along with some strategies for lowering your start up costs.
- Too much overhead– Start with the bare necessities and focus on surviving your first year in business. By keeping your business lean in the early stages, you may have a positive cash flow.
- Limited cash flow– The main reason new businesses have to close is because they don’t have enough money. Avoid making significant cash purchases and use other financing options so you can have sufficient cash in your bank.
- Too much planning– Don’t overwhelm yourself with all the little details because there will always be little details.
- Too little planning– While it’s better to start with version one than never start at all, this doesn’t mean you shouldn’t plan at all. You need to have a business plan, including processes and systems in place in order to succeed.
- Not getting involved in the community– If you’re not networking within your community, you’ll be missing out on vital business connections. Your website and social media are great, but you may also need people in your community to establish your credibility when you’re just starting out.
Strategies for Lowering Your Startup Costs
Even if you’re just working with something small and lean, starting a business can be expensive. Below we share some strategies to ease the financial burden that you might face upon entering the world of business ownership:
- Consider buying used equipment, machinery, or vehicles
- Lease instead of buying expensive equipment
- Reduce overhead expenses such as by reducing the size of your workspace
- Hire only who you need– at least at first
- Secure a floating line of credit
- Invest in insurance for financial protection in a number of areas
- Form mutually beneficial partnerships with other business owners
The earliest stage of your business development is going to be the hardest financially. Do you need focused business advice for your startup? Get in touch with us today, or click on the chat and let’s work together to sort out a plan!