Think before you swipe that bank card….
When starting a business there are so many things you think you need or want. You go out and register your company, rent that property, buy that big sign board advertising
“We are open for business”.
Stop! What do you need when you start a business or for that matter grow your business?
Every business is different. Each business has its own legalities, and there are fees for those. Some examples are, The Estate Agency needs to register with the EAAB before trading. Bookkeepers, and accountants need to register with SAIT and an Accounting Body, like ICBA. You can’t get away with those fees.
Ask yourself — Do I need to register as a company? The costs involved are in the thousands. Can I trade as a sole proprietor until my business is strong and on its feet?
To Employ staff or not to Employ
Employees — the costs to keep an employee is high, consider do you need them or not? What value do they or will they bring to your business? What about, instead hire a freelance assistant on a need to basis. There are many people that have taken the opportunity to freelance. They have left the corporate world to be a work from home freelancer or entrepreneur like you. (I don’t miss sitting in traffic for 40 minutes in the morning on the way to work). Pay for what you need, not what you want.
How much is enough stock?
Products. As a startup you are not 100% sure what is going to work, you have done your market research but you still got to market them. So, instead of purchasing in bulk, for that better price. Buy enough at a slighter higher price to test your market, than to sit with dead stock (slow moving stock). Stock that is not only going to cost you the price of the product, but the price to store it. If, you do have slow moving stock, for those growing businesses. Market it with other products as a buy this and get this with it.
Plan to win!
Planning is important. So, plan your startup costs. Plan your stock purchases. If you are a growing business, go back to the drawing board. Have a look at your business plan, and see what works and what doesn’t, and make a new plan. There are many business days in a business life, cost it one day at a time.
These are a few cost savings, for more in depth information, Contact Us
Cherine Mac Pherson at The Bookkeeping Company.