Foundations

The best business tip I ever got was from my father as he set up his first business. He hammered home the point; when you are starting a business you should watch every single dollar spent. Too many people spend every bit of money they acquire before the business even opens. If you open your doors penniless you have no room for failure, everything must work. The reality is that you will likely need a financial cushion. As I began my first business I really began to saw what he meant.

Sometimes, once you open your doors, you realize that your marketing campaign was all wrong. If you’re broke how are you going to dish out the cash to remedy this mistake? Sometimes you’ll find that your inventory is not quite right… that’s not a cheap fix. Now when I’m starting a business I question every purchase, do I need this $12 stapler right now? Not really I have three at home that I never use as it is. Is a commercial size copy machine really practical for my business? I think the twenty or so copies I make a year can all be done from my desktop 3 in 1. Remember, even the small purchases add up over time.  

Of course sometimes stingy can be bad. If your tight pockets have led to renting inadequate space (with a five year lease) this will ultimately reflect poorly on you and that much needed loyal client base will turn on you. Basic rule of thumb; if making a purchase is the only way to get customers then get it, if you can pass… do. Once you start making a little money you can start investing a little more. 

You always want to portray a professional appearance but you may be surprised how professional you can seem on a shoestring budget.