Spending is a necessary part of doing business. But deciding where to put your precious capital is not always easy when you’re just starting up and have to deal with the ever-shifting business landscape on top of having little to no business experience.
What exactly are worthwhile ventures that should get a share of your initial capital investments?
Technology makes things easier. No wonder why there’s a product for almost every part of running a business.
Integrating a solid technological backbone to your business operations makes room for efficient work. So invest in a good customer-relationship management tool, reliable communication devices for web conferencing—both for meeting remote clients and employees—secure database systems, a good email-management tool, and a thorough analytics engine.
Don’t go cheap on office hardware and equipment. Durable but expensive is always preferable to cheap and short-lived.
Business is a gamble. Nonetheless, there are ways that you can increase your chances of getting positive returns of investment without stumbling upon costly trial and error. That’s called efficient planning, and an essential part of it is doing the ever-important market research.
What are you selling? Will people buy it? Who is your target market, and what are the most effective marketing methods to convert interest into profitable action? All these can be gleaned by taking a thorough look at your target market data.
You’re pushing your luck if you think setting up the business is all you need to do and clients will just come knocking at your doors to have their problems solved. Even if you don’t have much competition, you still need people to find you. And even then, you still have to convince them that you’re worth their time and hard-earned dollars.
Don’t depend on organic reach. Set up a professional marketing team who can direct people to your business and encourage them to buy.
Being a one-person team may work for you now, but if you want to grow your business, you’d have to get people on board sooner or later.
Hire people with the same passion and heart for growth as you. Running a business is hard in itself, but with the right people, the burden can be shared and tasks can be distributed.
You need to make sure that every member of your team has the skill, right attitude, and initiative required to tackle the challenges of a startup business.
In the digital age, having an online presence is a must for any business regardless of whether you conduct transactions online. There are multiple platforms you can use to achieve this purpose.
You can set up social media accounts, a website, or an official e-commerce store if you’re in the business of selling. Using one of a combination of these platforms will make it easier for potential customers to find you online, build relationships, market your brand, and convert visitors to paying customers.
There’s no such thing as too early when tackling the legal and professional concerns of your business. It’s best to get it out of the way first rather than have small problems spiral into bigger, costlier, and harder-to-handle issues that may cost you your whole business in the future.
These concerns include the more sensitive aspects of your business such as managing payroll and accounting, creating contract terms, understanding liability issues, formulating workplace laws to make sure you do not violate any existing labor laws, and computing tax, among many others.
A lot of small business owners prefer to delay getting business insurance until at a later part of their operations, arguing that they don’t need it unless they’d have to make serious money decisions.
But doing so can be counterproductive. Remember that risk is still a part of your business, and if you come underprepared, the smallest surprises can spell the end of your little venture.
It’s one of those things that you can’t afford to leave to luck. Learn about business insurance here.
In business, money begets money. While there are certainly businesses that you can start with very little capital, sooner or later, you’re still going to have to shell out funds if you hope to grow.
Think of it as necessary fuel for your business. What you invest now, you hope to gain in folds in the future. That’s why it’s so important to spend on the right things. Otherwise, you risk losing, and losing at the start is never a good thing for startups.
The above priorities should be catered to first by virtue of their potential ROIs. If you get them right at the start, you’re in the game.
Published by Lara Buck