The cost-of-living crisis has made it harder than ever for startups to get a foothold. Business expert Venture Smarter offers some tips on making your dream company work.
Thinking about starting the new year with a new business? Well, with strategic planning and careful budgeting, you won’t have to break the bank.
Here’s some fundamental advice:
- Before launching a new business, it’s crucial to develop a comprehensive plan. This should include a detailed description of your company model and target market. Identifying your unique selling proposition is important to distinguish your business from competitors.
- A well-crafted plan will help make informed decisions and make it easier to allocate funds to priority areas.
- Utilise your personal and professional networks for support and potential collaborations. Attend local networking events to meet potential clients, partners, and mentors. Consider bartering or exchanging services with other businesses to minimise costs.
- While personal savings can be valuable when starting a business, spend only what is necessary. Use your existing resources efficiently and prioritise your spending on aspects that directly contribute to business growth to avoid unnecessary debt.
- Consider adopting a lean startup approach by starting with a minimum viable product (MVP). This will enable you to test your business concepts with minimal risks and gather feedback from your friends, family, and customers. You can refine your product or service to improve its quality based on their responses.
- A lean approach also makes it easier to minimise costs. You can consider various ways to save money, such as working from home or sharing co-working spaces instead of committing to an office lease. Additionally, you can source cost-effective equipment, furniture, and supplies.
- Do your own marketing and network using social media platforms, content marketing, and emailing campaigns to reach and engage with your audience. You can find free online tools to create your marketing materials. Consider hiring freelancers or part-time contractors instead of full-time employees for specific tasks.
- Build strong relationships with suppliers and negotiate for better deals, discounts, or extended payment terms. Establishing open communication can lead to cost savings and improved financial flexibility.
- Keep learning and acquiring new skills that can benefit your business. For instance, learn basic accounting, marketing, or website management to reduce reliance on external services. Remember that learning is key to running a successful business. If you don’t understand something, consider using many of the free online courses that are available to improve your skills.
- Maintain a frugal mindset throughout and scrutinise every expense. Regularly reassess your spending priorities and allocate resources that contribute to the growth of the business.
Starting a new business requires a clear focus on what truly matters and a willingness to refine your approach as your business evolves and adapts to changing circumstances. With determination and a thrifty mindset, even a budget-focused startup can thrive in a highly competitive business landscape.