Before going into details about ways to stay within your budget, it’s crucial that you actually have a properly figured-out budget to start with. Put aside some time to create a realistic budget that details the funds you have available (both in ready money and business loans), any incomings at this point, and your known outgoings. Once you’ve got your budget in place, it’s time to start thinking about ways to stay within it; or to even shave enough off your expenses to be able to start a contingency fund. Here are some tips, tricks, and hacks to keep your new concern in the black and thriving during its early days so that it’s perfectly positioned for a prosperous future.
Keep Your Day Job
This is one that most people aren’t keen on hearing, but not jacking in your day job until your start-up is fully up and running and turning over a profit is important. An initial surge in sales could convince you to hand in your notice early but bear in mind that this could be a temporary spike. It’s better to be safe than sorry and only leave your job when you know your business can support you.
1 Keep Your Day Job2 Build Your Own Website3 Make the Most Of Free Online Solutions4 Barter Rather than Buy5 Hire for the Hours You Need6 Use Free Marketing Methods7 Keep Watching the Cash Flow
The beauty of an online business is that you’re likely to have the opportunity to run it around your day job, so take advantage of this situation to keep the cash coming in.
Build Your Own Website
It’s easier and cheaper than ever before to build your own business website, which means you can save the considerable expense of a professional website designer to get your business live and trading. Choose your builder with care to get the package that’ll best suit you and give you and your business the features you need – for more details, read here. Most builders allow you to easily add eCommerce elements to your site, so you can start selling straight away.
Make the Most Of Free Online Solutions
If you want to use scheduling or project management software as part of your online start-up, have a look for options that offer free or trial periods to save some cash. It also may be worth choosing the free, standard package of, for example, a CRM platform to see if this is sufficient. While you’ll usually pay more to access premium software features, it may be the case that, in the early stages of your business, you don’t need these advanced tools. You can always upgrade to a paid option at a later date.
Barter Rather than Buy
Barter exchanges are now really popular among new businesses and start-ups and are a great way to conserve cash. They work by allowing you to trade your product or service for those offered by the other party – so no payment is involved. It’s vital to have any barter agreement fully documented and get all agreements and offers in writing. As well as protecting both parties, you’ll also need to detail these transactions for business tax purposes.
Hire for the Hours You Need
Paying unnecessary staff wages can eat a huge hole in your start-up’s budget. Think carefully before making any hire to ensure that this additional person is really required and will add value to your business. If you do decide to recruit, try hiring on a part-time basis initially, rather than taking on a full-time employee and find there’s not enough to occupy their time for a whole day. You could also consider using a freelancer – the advantage of this option is that you’ll just pay for the days and hours you need help.
Use Free Marketing Methods
Marketing can be expensive – but it doesn’t always need to be. Think of all the free marketing opportunities open for you to promote your online start-up. Social media is one of the most effective free marketing tools there is; the key is to provide regular, engaging content and incorporate as much user-generated content as possible to create a buzz around your business. Consider setting up a YouTube account and uploading some relevant ‘how to’ guides or hosting a webinar to meet and engage with potential new clients and business peers. This is a great chance to network as well as promote your new venture.
Keep Watching the Cash Flow
And to round up: keeping a close eye on your start-up’s cash flow is crucial. This will help you to stay on top of your income and expenses and act as an important early warning if your budget starts approaching its upper limits. You may wish to use a banking app or free accounting software for this process; the benefits of getting on board with tech to help in this regard is that you can generate reports with just a couple of clicks that’ll give you the information you need on your start-up’s financial status.
