The hardest part about starting a business is getting the initial money together. It’s rare that a small business can exist without some injection of funds in the early days.
After all, you’ve got to spend money to make money! Many entrepreneurs turn to their own savings account. Failing that, they ask family or friends for a loan.
They may even approach the bank about business lending, or secure investment elsewhere. However you find the money, it’s crucial that you spend it wisely.
That limited budget has got to set you up, and lead to your first round of profit. Here are the essential things you need to spend the money on.
Assets and equipment
Most businesses need some sort of equipment, tools or assets to get started. Freelance designers need a computer and their design software. Plumbing startups need their tools and their van.
It’s always best to start your company with the best equipment you can afford. This will be your livelihood remember, so don’t cut corners.
It’s at this stage you should start negotiating with essential suppliers too. Your plumbing startup should reach out to suppliers like CCTY Bearing, and get your hands on those essential components.
Nowadays, every business needs to exist online. That means creating a professional website. Now, it is possible to get online and build your own site.
Platforms like WordPress and Drupal make it relatively easy to create a website using template designs. Personally, we think it’s worth investing in a purpose-built, bespoke site.
It’s unique, professional, and tailored to your company. Speak to a web designer about how you can present yourself online.
In these early days, you need to spend a lot of time, effort, and money on research. If you’re to launch a successful company, you need to know everything about the market around you.
Start with product research. What else is out there competing with your product or service? Put money into prototyping and product design. Make sure it’s unique and compelling.
Research your target audience, and find out exactly how to reach out to them. Research the competition, and find your niche in the market.
Building your presence is one of the hardest things for any new startup. There are hundreds of others out there, fighting to be heard through the noise.
One of the quickest ways to cut through is by spending money on your digital marketing. Using SEO, social media, and emails, you can quickly reach out to the right people.
You can start making an impact in your industry.
Buying lunch for the right people!
Despite all this, it’s people that will open up the right doors for you. Networking is the key to success in any industry, and it’s the best way to connect with clients.
So, put aside a small amount of money to entertain and meet the right people. Target those in your industry that can help you.
Money is always tight in those early days.
It’s vital that you spend it wisely, and make every penny count.