A new business is something fresh and exciting, filled with possibilities and potential. But it can also be a handful, especially if it’s your first time starting a business. That’s why it’s necessary whenever someone starts their journey into business and entrepreneurship. They come equipped with skills. These skills are wide and varied, but among the most important is knowing how to make a smart financial strategy.
Many first-time business owners tend to fall into complacency, thinking that they have the finances and planning of their new business down. But it’s also easy to overlook even the most basic of expenses. It doesn’t include purchasing supplies and delegating funds for marketing; it also includes everything in between, like upkeep, maintenance, and upgrades. Below are some ideas to keep in mind when plotting out the finances of your business.
Sustainability Is Key
There is this underlying assumption that you should only purchase the most expensive products for your business to ensure quality. Naturally, a high price doesn’t always mean it’s of high quality. Instead of looking at it from this perspective, look at it from a sustainability standpoint.
Having sustainable resource means you won’t generate more waste, or you’ll save up in the long run. Put like this. It seems vague. Here’s an example: instead of buying the latest and most expensive tablet for your point-of-sale machine, consider buying last year’s flagship tablet. Flagship tablets from a year ago are still powerful and can do more than what you need. It’s the little things like this that make something sustainable. Apply this mentality and belief on your purchases, especially for hardware—the thousands you save can be put on other improvements for your business.
Don’t Be Afraid to Treat Your Staff
A pizza party or eating out is a common way for businesses and their employees to celebrate. It’s a good way to bond and socialize with your staff in a relaxed environment. It’s these opportunities that you can strengthen your relationship and be on the same page.
Making the initiative to cover the cost of a celebration after a job well done is a great way to show your gratitude. Giving them the recognition that they deserve is important in keeping a united company. Including celebrations in your budget plans is also planning positively as you are creating a plan under the assumption that your team will succeed. This motivates your staff and primes you for more success as you take matters like this very seriously.
Invest in Your Image
The company earns not just from its products but also from its image. You need to make a strong first impression that your clients will remember you when your services are needed. This means allotting budget to making your business look and operate more professionally.
This includes maintaining a clean and orderly office and even uniforms or clothing allowance for your staff. Even you, as the business owner, are subject to the power of the image. Invest in your image, as you own the business, and you’re the company’s prime representative. Use professional teeth whitening kits; make sure your clothes are ironed and your hair well-kept. A striking first impression is one that lasts, and this is the best way to turn all those leads into customers.
Include Repairs and Upkeep in Your Budget Plan
Things that are bound to go wrong will eventually go wrong, but you shouldn’t just sit idly by and do nothing. Include upkeep and repairs in your budget plan to circumvent any potential emergencies. You don’t want your computers breaking in the middle of a vital project, don’t you?
Alternatively, you can include a monthly ‘checkup’ in your workflow to get ahead of things. It can be as simple as a cursory check every week to make sure things are in order, to something as deep and intensive as a monthly checking of your hardware. Including an emergency fund in your budget in case of hardware failure will make sure that your company won’t be frozen in place in the event of breakage, and you can continue.
Don’t Cheap Out on Marketing
For startups, marketing isn’t as much of a focus as maintaining business operations is. However, completely neglecting marketing will make you reliant on your current (and oftentimes, small) pool of clients. This is the opposite of expansion, something that every business strives for.
Instead, put a considerable budget on marketing. And be smart with how you market, as marketing to a general audience is only a waste of money. You’re casting your net too wide and end up catching none- instead, try marketing to focus markets. This way, you get more out of the money you set aside for advertising.