Everybody wants to start a business. Working five days a week or more for somebody else doesn’t sound too appealing to most. We all have ideas on the perfect business plan. When it is time to put those ideas into activation, you run into the usual roadblocks. You are too busy working, and time is not available, and here is the number one reason, you don’t have the money.
The major reason why many businesses fail is lack of funding. So let’s say you saved up a small bundle of cash, and you received a loan from the bank. You want to manage that money properly, so you do not become a fiduciary statistic.
Hiring the right people
The first & foremost thing you must look into is hiring independent contractors instead of employees. The reason for this is because your workers will get paid for their products and not their time. The worst thing you want is to carry an unproductive worker. When you hire independent contractors, you don’t have to worry about benefits, workers insurance, and the right to minimum wage and overtime.
Another thing you need to consider is purchasing indemnity insurance. On the front end, you will be paying a premium, but it is worth it. When you do business, you want to be covered for all seen and unforeseen circumstances. Even if something happens and it is your fault, you will be covered. This type of insurance is similar to full coverage car insurance. You can total your car, and no matter who caused the accident, you will still be compensated. Doctors also purchase this type of insurance to protect themselves from malpractice lawsuits.
The third thing you can do is outsource your administrative work overseas. There are professionals in countries like India, Thailand, and the Philippines that can handle multiple tasks for a fraction of what you would pay for in the United States. Basic things like answering the phone, data entry, and setting appointments are no problem. The attractive thing is that they can also handle more complicated duties like social media posting and marketing, graphic designing, SEO, and animation.
The fourth thing you can do to maximize your dollar when starting a business is to pay a portion of your employee’s salary with shares in the company. To do this, you have to hire people who see your vision and have faith in the company. The pro of this strategy is that your workers will be motivated to perform well because they do well if the company does well.
The fifth thing you can do if you are in the retail business is to drop ship your products. This one strategy alone can save you a ton of money. Dropshipping means that you do not have to invest in inventory or a location to stock inventory. You connect with a wholesale company and work out an arrangement with them where you create the sales, while they take care of the stock, shipping, and handling. With this type of agreement, you can focus all your energy on marketing.
Finally, the last thing you can do to save money when starting a business is to educate yourself. Strive to find out everything you can about the business you are getting involved in. The more duties you can perform yourself, the more money you can save. Here is a prime example: most musicians want to break into the music business, but only can sing, rap, or write. The musician now has to shell out money for production, visuals such as music videos, social media marketing, and more.
When you are a starving artist, it’s hard to come up with and maintain the funds to keep your project going. Successful musicians not only have vocal talents, but they also can do production, market themselves, and shoot their videos. They also try to stay on top of the business side of the industry.
Knowledge is the most important tool you can have to save money and have a prosperous business.