Most small businesses start life on a short budget. Even with investment, or grants and loans, things can be a struggle. Even those businesses with very low start-up costs can struggle to make much money for the first few months or even years, and even a sole trader with no start-up costs needs to pay themselves.
This often means that in those early days we try to cut costs wherever we can. Instead of hiring staff, we take on whatever we can for ourselves or call in favors from our friends and family. Instead of hiring an office, we work out of our home garage or lounge. You might even find yourself turning the thermostat down a few degrees to make the pennies stretch that little bit further.
This can be a good thing. Starting out like this means that you have to work. It means that in time you become an expert in all areas of your business and that you are always willing to commit long hours. Starting on a budget and struggling means that you appreciate the small successes, and if you’ve got a small team, it can bring you much closer and help you to work in harmony. Finding ways to save money will also make you resourceful and frugal, it will teach you more about finances, and mean that you are unlikely ever to waste money in the future.
But, while it’s true that there are some fantastic places to save money in your small business, it’s also true that there are places where you shouldn’t make too many cuts, where you need to spend money to make money, and even where you need to spend to ensure your business stays open.
Backup
There are different kinds of backup for your business. You can backup files and documents to the cloud or an external hard drive. You can look at Generators for Sale so that you know that you’ve always got a backup power source. You can also backup your website. Whatever backups your business needs to make sure it’s safe and protected, are worth spending some time and money on.
Legal Requirements
The legal requirements for your business will depend on what it is and who you serve. Some, like registering as self-employed and registering your business, don’t usually cost money. But, others like the right licensing to play music in your restaurant or a food hygiene certificate do. But, you can’t skimp here. Not having the licensing that you need could see your business being closed down.
Insurance
The kinds of insurance that you need, again, depends on what you do and who you serve, but you will almost certainly need some, and you shouldn’t risk being without it. If you interact with the public, even if only at trade shows or when receiving deliveries, you need liability insurance, you might also need small business insurance.
Marketing
You don’t have to spend money on marketing; nowadays there is a lot that you can do yourself. But, if you can assign it some of your budget, it’s never a waste of money. Marketing is your way to increase your audience and sales. It’s always worth spending what you can afford.
