What’s should you avoid spending money on as a start-up?

When you’re just starting out a new business it’s always an exciting time. For some people, being their own boss is the absolute dream. Running the roost, deciding your own hours, where the business wants to go, it’s ethics and values all fall under the responsibility of ownership.

Although there are plenty of pro’s, it’s easy for owners to get carried away and spend money on things that aren’t necessary, or things that won’t help push a business forward. Some of the costs involved in a start-up are essentials and have to be covered, but it can be easy to get carried away and put money into areas of the business that don’t need it yet.

There’s nothing quite like a shiny, modern office, or branded t-shirts that have your logo on. But early doors, are these the best way to be spending money?

Too many staff – too soon

Although hiring a workforce can be a stressful experience, it should also be a fun one. Finding the right people to help you take your business forward will always be a challenge, but if you find the people who are as qualified and as passionate as you, with the right ethics, it will be key. There could be a temptation to hire lots of people to help take the business off from the ground, likewise if you rely on seasonal work you could have fluxes of needing more staff, but when these slow down, you could end up with lots of staff on large salaries.

Although taking on part-time or subcontracted staff may not seem like a long-term plan, it can help you assess the business’s needs as your moving forward. The right amount of staff at the right times will save you plenty of cash in the long run.

Going overboard on the marketing

Marketing is a key part of starting and growing a business. Getting the right message to the right kind of people should not be underappreciated and it’s crucial when it come to getting a business kick started. Even though marketing a business correctly is critical, going over the top can not only put people off, but it can also be a hit to the bank account and put you into debts.

Overindulgence in marketing can be exactly the same when it comes to branding your own equipment, is it an essential cost you have to make within the first few months of your business? Creating the right kind of promotional material is essential and although a business should have a clear message, it should be promoted through the right channels.

Expensive business expenses

The same can be said for your business expenses account. Meeting clients, taking them out and building strong relationships is key, but there’s no need to go overboard, try too had to impress them and put huge amounts of debt on your business account. Fancy meals and drinks can only go so far, with the same said about the necessity for a company car.

A shiny new office

In the current climate, this is arguably the biggest way to waste money for a start-up. The coronavirus pandemic has taught us that people can work from home just as efficiently as they can from the office. Although it’s important to get people together and have a strong team morale, is the most glamorous and expensive office completely necessary?

There are the benefits of having a nice place to show off to clients and for posting on social media, but it is an investment you truly need so early on in a business’s life?

In Summary

New business adventures are both exciting and scary. Brilliant ideas, big plans but without the right strategic plan in place, things simply won’t work. The right kind of research into all aspects of the business is critical, marketing, staff and your premises. It’s also extremely important to consider how you want to structure your business, and how much your personal and business finances should intertwine.

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