Making Your First Financial Decisions When Building a Business
Setting up your own business can seem like a scary idea. The financial risks should it not succeed are at the forefront of every budding entrepreneurs mind. What differentiates those who succeed from those who fail is not failure as such, as it is usually part of any sprouting business venture; rather it is the determination to pick yourself up and dust yourself off should your first forays into the world of business prove, shall we say, less than fruitful.
It is also the ability to think clearly, make rational decisions and, when eventually success should come, staying grounded. All too often small business make a promising start, but then falter as their creator forgets one very crucial fact: Revenue is not always consistent. You might find that you manage to generate some revenue early on, but this does not steadily rise or even remain consistent. Very possibly you will go through times of barely breaking even (if that) after things start out well. Due to this, there are a few things every business owner needs to bear in mind while making financial decisions.
Be economical with your space
Of course your office is a representation of your business and we are not suggesting setting up shop in your parent’s garage. But you also do not need to shell out for a big loft office in the city centre straight away either. Start off with a humble office, or perhaps one of the meeting rooms we wrote about here. For these, you know you will be able to pay the rent for without struggling to begin with, as there is always time to expand and move on to bigger and better offices later on. Your clients will judge you more for your work than your office.
Invest in your online presence
You should think of your online presence much like your office, except take it much more seriously. Your website is the face of your company; it is how you present yourself to the world. It’s likely that potential clients will judge you based largely on your website and make snap decisions within minutes of visiting it. Too hard to navigate? Wrong font? Wrong colours? All reasons a client might decide your business does not align with his or her professional ethos and disregard you as a business partner. Choose a well-rounded webspace option by browsing the range from a provider like 1&1, for example. It’s also worth hiring a graphic designer to make your page a perfect representation of what your business stands for.
Be selective about who you hire
The mantra here is definitely quality above quantity. There are a few important things to consider when making your first hiring decisions and a few key people you will need to get your business up and running. It is worth investing both time and money in these first employees that will help you build your business. Ideally these first critical employees should be well-rounded individuals with a broad skill set who are willing to invest their time as much as you are yours into your new business.
You must also differentiate between which roles must be performed by an employee, and which can be outsourced. Accounting, for example, can be done through consulting arrangements, while having someone work for you who is an expert at marketing and will know exactly how to position your business in the marketplace is absolutely vital.