Starting you own business is not an easy prospect. One of the vital aspects that’s often hard to master is to know the steps to maintain a successful startup. In the initial phase, people who decide to have their own startup are energized and determined to make the big splash in the market with their venture. That is easier said than done because initially one faces a lot of constraints and one of the most common but key issue is having low budget to pursue your big dreams.
However, one of the top causes of failure in a startup, is not the low budget but lack of consistency and quality. So even if you are tight on your finances you can still make sure that your startup makes the impact you dreamt of by following the guidelines given below.
1- Every dollar counts
Every penny you invest to build your startup should grow your business further even if it is on an infinitesimal level. Budget for every category should be allocated according to the weightage of each category in the business. For instance, in order to promote your startup take advantage of social media and word of mouth. Spending a big chunk of the budget to avail marketing services in the initial phase may not be a sensible decision. So, invest your hard earned money wisely and after a thorough research.
You don’t want to run out of cash and be unable to make payments. So, having a close eye on each and every dollar will help you determine if you can meet your goals and then plan accordingly for future as well.
2- Times of little or no salary
Every startup takes some time to settle in market and become successful. Initially, the business may not be yielding as much as you planned and despite of paying your employees you may be the one being paid the least, but with patience and dedication you can pass this phase as well. Remember, good things take time.
You cannot expect to earn billions and live a luxurious life when you have started your business with a tight budget. Start by reducing your personal expenses and give 100% of your resources and energy for climbing the steps towards success at a greater pace. One more technique that you can adopt is to avoid outsourcing tasks to different services if you can do it by yourself or can learn to do after a little effort. At the end of the day, it will save you money as well as add a skill to your resume.
3- Reduce Expenses
Now the point arises of how the expense can be reduced. Start by revaluating your expenditure on the workspace. You can reduce the costs by working from home if possible and only investing in an office when you really need to have your entire team together to function properly. Outsource your work to freelancers rather than high end professionals, if needed.
Moreover, instead of buying the equipment/vehicles/office or anything which will cost you a lot, try acquiring them on lease. This way your cost of doing business will grow only as your income grows and your budget can be saved to spend in times of need as well.
Lastly, you can implement reducing the expenses by learning the art of negotiation. Many of the times people cost you more than the reasonable price and only with this tact you can obtain something at good price.
4- Increase Efficiency
No doubt dedication and commitment make you reach your goals, but efficiency makes you reach there fast. It is very important that you utilize the money as well as the time efficiently. There are tons of tasks at the office which are time consuming, use effective tools to manage those tasks.
Using effective HR applications will help you keep a track of your employees. Marketing tools will assist you in promoting your brand without the need to invest a big chunk of money for it.
Nowadays, there are tons of applications which can keep you and your team members connected (in case you are working from different stations). There are also tools available which help you manage the database of your customers very effectively without the need of getting it done on expensive rates. Lastly, majority of these tools available are easy to use helping you work efficiently towards your goal.
5- 80/20 Rule of Sales
According to this rule 80 percent of your sales are generated from 20 percent of your customers but also that 80 percent of sales is possible due to the efficient 20 percent of your sales force. Understanding this rule helps you design your business strategies more effectively.
For every business that significant 20% of your customers is different, identify it and then plan to bring the customers similar to those 20% on board. The rule can be applied to your workforce as well, the 20% which brings you maximum revenue should be observed and people having same characteristics should be recruited, when needed. Moreover the rest of 80% can also be trained to work like those 20%.
6- Have an Emergency Funding Plan
Even after well thought plans and strategies there are times when the business faces uncertain crisis. It can be anything from natural disaster to an unstable economy. For situation like these there must always be some sort of Emergency Funding Plan. This plan my only be possible if you predict the worst thing that could happen to your business and the amount required to resolve that crisis, then start saving money according your business type.
Saving in high profit times or investing in assets which can be liquidated faster in your bad days are two of the strategies to save money.
Bottom line is to work devotedly in achieving your goals with persistence and investing your money wisely after a thorough research.