If you’re looking to start a business, you might be wondering what costs are entailed. It’s no secret that new businesses need more investment than those that have been around for some time, but the rewards can actually be greater. You may think that it’s a risky decision starting a company right now rather than staying with your current career, but if you have a dream and an excellent business plan, when is the right time?
There’s no way of hiding from the fact that to get your business up and running, you’ll need to make some investments. Let’s take a look at some of those investments now so you know how you can save a few pennies along the way.
Hiring people
If your business requires people with specialised skills, you’ll need to hire specialised people; this will cost you money. This could include a skilled sales team, software developers, engineering services, or even accountants. It might seem like a costly way to kick things off, but if you want to leave a lasting impression once your business hits the public it’s essential.
Wherever possible, hire those that share your dream and love for your business idea. They are more likely to stick with you if things are tough to begin with, because they are just as keen to see this idea work. If paying wages for specialised people might be an issue, consider offering equity in your business in return for reduced wages, as this might be just the incentive they need to hop on board.
Equipment and furniture
You’ll need to buy equipment and furniture, it’s pretty much unavoidable. Even if you’re choosing to build your business as a completely remote company, your team will need laptops and other equipment or programs to make the magic happen.
If you are working within an office environment consider building desks and using second hand office chairs to begin with. Again with shelving and display units, see if anyone you know is willing to help you build them rather than buying new. Some wood and paint with a bit of elbow grease is going to cost much less than a set of brand new units.
Office space
If your business is unable to be a remote working business, then you’ll need an office space. Renting large spaces can be expensive, and if you only need a small office then it’s not worth the cost. Consider looking for coworking spaces. This is where you share the space with other small companies or those without facilities at home looking to work or complete schoolwork. It’s a great way to build your business from the ground up without spending an arm and leg in the first year.
As you can see, there are always ways to save on your start up business costs if you look hard enough. The key is deciding which investments are worth holding up on. Hire specialised people, build your own furniture, and consider a coworking space to save money to begin with. Remember, you have to spend money to make money, so be wise with your investments!
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