Part 12 ~ Acey Gaspard’s Guide to Starting a Small Business – Made Simple
Jerry was in the startup phase of his very own business. He went all out and set up an office many business owners would only dream of. He had a top-of-the-line computer system and a desk fit for a Fortune 500 CEO. The money Jerry spent on advertising and getting ready for the grand opening was enormous.
Everything was looking perfect for him, and he was on cloud nine planning, organizing, and getting ready to live his dream. Unfortunately, that day never came.
You see, Jerry purchased so much of “only the best” before the appropriate time that he didn’t have enough cash left to run the business and no means of borrowing additional funds. Jerry was forced to shut down before even opened his doors to the public. He only got a small taste of his dream. Will this happen to you?
Go Easy During the Startup Phase
Starting a business involves many issues, and you don’t see a lot of them until you’re faced with them. Some costs can be put off until a better time. Some expenses you won’t be able to put off at all.
Here’s One Way to Look at Starting a Business:
When a business is in the startup stages, it keeps going until it runs out of money to operate. So the more money you have, the longer you have to succeed and build stability.
The quicker you go through cash, the more the pressure is on. With more pressure comes more mistakes, and the mistakes get more dangerous.
Make life easy, and go easy on the cash. If you purchase everything you want in the startup phase of your business, remember that you may not own it for very long.
Another Good Reason to Wait
During the startup phase, you’re aware of where your money is going and make your purchases with only price in mind (“How much can I get with the money I have?”) rather than the best solution. When your business is more stable, you tend to look toward the best solution instead of just what you can afford..
You Can Cut Costs to a Bare Minimum, but Only Where Applicable
For example, if you’ve opened a new hairdressing salon, you may cut down on the cost of computers, and office furniture, but it would be a huge mistake to cut down on the chairs, hairdryers, or utensils used for the clients. That’s not cutting your expenses, but reducing the chance to succeed. You must appear to be top-of-the-line when it comes to items used or viewed by your customers. They have to feel at ease when they’re doing business with you. They have to feel they’re getting the best service available to them.
It’s easy to get moving at full speed and purchase nice furniture, top-of-the-line equipment, a beautiful office, etc.
I’ve done it. I’m the type who likes everything to be top-notch from the beginning. But you know what? It’s not worth it.
It’s too much of a headache. It’s better to spend the money in the right places, and luxury is not the right place. The better stuff can wait. Got the urge to spend money? Then purchase your business’s stability, purchase your freedom, and spend wisely!
Action Steps to Avoid Spending Money During Startup Mode
- Make a list of “wants” and “needs” for your business, but don’t just stop there. Prioritize the items on your “needs” list to ensure that the money you spend really goes to issues or areas that really need it.
Important Points to Avoid Spending Money During Startup Mode
- Spending money is always easy, but moderation is essential when it comes to setting up your own business!
- Don’t spend on items or areas that do not immediately affect clients.
- Keep in mind that spending money on the best and most expensive items takes money out of your business’s operating wallet.