Small Business Start Up Help

There must be something happening in the universe. No sooner had I written 2 posts at entry level on small business cashflow than I found this great article written by David Bracken in the UK stressing the importance of not overlooking cash flow management. Now I know I am not a lone wolf howling into the wind. In fact I consider this so important that I have reproduced nearly all of the article below.

Small Business Management – Cashflow

Successful entrepreneurs usually concentrate their efforts on three key areas: vision, people and cash. Much advice and attention is lavished on the exciting work of developing and articulating a vision for the business: the grand strategies for world domination, or on ideas for hiring, managing and motivating a great team. The boring numbers bit about managing cash-flow too often takes a back-seat. However, to succeed in business, you must first avoid failure, and all businesses fail in exactly the same way: they run out of cash.

By having an accurate forecast, you will be able to judge your expenditure carefully, manage your working capital and seek additional funding in good time. [Read more…]

You have a great idea, you have done your homework and are ready to get going. It’s hard, but try & keep the reigns pulled in by keeping in mind low start up costs are going to you benefit you in the long term. If it will help use this as a mantra… do I need to spend this much on this item now, is there a less expensive alternative…It is not an exaggeration, with 50% off business not surviving one year in some parts of the world, this could be the difference between success and failure. What follows are some strategies for keeping low start up costs written by Jacob Cass.

Think About Your Office Space

….it is likely that you will be working out of a home-based office so this may not be a significant issue. Too many new business owners fall into the trap of spending too much money on the trappings of a luxury office. As per Mr. Morris, new business owners should use utilize extra space in their home, even the garage for as long as is feasible. Another possibility is to join a start-up incubator. An incubator is a great option for new entrepreneurs as these spaces typically provide access to a copier, scan, telephone and fax services. Not so incidental is that an incubator also permits you the opportunity to interact with other start-up business owners for support and camaraderie.

Consider Your Options for Computers / Equipment

…… it is is more than likely you will need a computer / laptop with a consistent Internet connection, along with software. The next step is to identify the least expensive option for purchasing these products. One idea for new business owners is to rent and lease a laptop rather than purchase, since this gives you the flexibility to change models as your business grows. Because a computer is essential to your business as a designer, do not shortchange yourself in this one regard. Also, remember there is no magic button.

Use Low-Cost Marketing Strategies

There are several low-cost strategies small business owners may employ to keep marketing costs down, especially with social media. Create a page on Twitter, Facebook and LinkedIn and engage prospects with status updates that pose questions or ask for feedback. Engage with your network. Join discussion groups or start a blog to become recognized as a thought leader in the field. Email can be used to promote special offers. Write an article or series of articles and submit to article directories or as guest postings on the sites of colleagues.

Even thought these tips been written for a freelancer or designer they can be applied to most businesses. Just keep in mind

… do I need to spend this much on this item now, is there a less expensive alternative….

low start up costs are a piece of the puzzle in building a sustainable business.

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Small Business Management – More on Cash flow Management

Small Business – Low Start Up Costs A Piece of the Puzzle