Starting a new business is super exciting and equally daunting. Having a business plan, goals and strategy in place is paramount. It’s easy to get caught up in the hype and whirlwind and can sometimes be difficult to identify where to spend your money. With so many “gurus” out there claiming they can help you make lots of money.
I’ve started an array of business that have all been successful but I’ve made mistakes too. From those mistakes, I’m able to write this post today. I’ve learned from my mistakes and now a lot savvier when I start-up.
Everything is relative and dependant on budget, but most principles remain.
Here’s my basic top tips on being money savvy as a business start-up.
1. Set a budget, create a plan and draw up a spend strategy for all areas. Ensure this is all in your business plan.
2. Digital Advertising is the only way forward. Create a strategy around your target audience as not all are appropriate. For example, some people do not have time to sit through a webinar or some may not want to opt in emails to get the product or service you are offering. Really think about where your target audience will embrace your brand the most. Understanding your market is the most important factor.
3. Choose the right digital application. From Facebook ads, social media marketing, PR, blogger outreach etc. All businesses are different and will need a different approach. If you have budget for all, then, amazing. But if you don’t, then you need to consider just one or two and focus on putting a decent budget into the ones that will give you the most effective outcome. Facebook ads are a good starting point for most as you can set budgets as low as $5 per day. I can’t stress how important Social media is for business. It’s the perfect way to engage with your audience organically when done the right way and increase brand awareness – a powerful tool especially when you hire a social media manager.
4. Keep over heads as low as possible. It’s likely you won’t be paying yourself for a while unless your start up budget allows it.
5. Keep cash flow healthy and reinvest back into your business. Increase advertising budget where possible. Many businesses drop their ad spend so those that can ride the wave and slightly increase will benefit.
6. Don’t buy unnecessary items. Keep it logical and practical until you start making a profit to reinvest in other equipment or expansion.
7. When investing in equipment, then research and aim for best buys and always choose quality rather than cheap and cheerful. Buying cheap is a false economy.
8. Open a dedicated business bank account / ideally have two. One for incoming and one for spend. Set an allowance to transfer money from incoming to spend that covers all overheads.
9. Invest in where your strengths don’t lie. If you are a sole trader or part of a small team, outsource where you don’t have the abilities. Freelance accountants, designers, social media management etc.
Of course, there are many other ways, but I found these to be the most valuable and I hope you do too.