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6 Strategies for Your Business to SaveMoney

Small startups with big ambitions seem to spring up in droves every year, with many delving

into the entrepreneurial world with often unrealistic expectations.

While it’s empowering to have a forward-thinking focus from the get-go, staying enthusiastic

and financially afloat during your endeavour’s first year is just as important for success.

Cost reduction throughout the initial startup periods of any business is crucial, with many

small business owners taking out loans they can't afford or just simply overspending.

Let’s look at a few common pitfalls and our six cash-saving strategies designed to ensure

you don’t wind up being added to those already-discouraging statistics.


Make Yourself Accountable for Your Financial Goals


Putting together a financial plan seems like it should be every business owner’s first step,

however, such a task can quickly become overwhelming if they have little to no experience.

Setting out clear and realistic financial goals during your first year in business is imperative,

placing emphasis on the balance between a challenge and a complication. Attempting to

overachieve too soon can be detrimental, meaning prioritisation is the key to moving

between the stepping stones.

Undertaking a self-assessment of where your business is, where you’d like it to be and what

has to be done to get there reestablishes accountability (and even motivation), towards

financial success.

You should be calculating the following at the very minimum as a fail-safe strategy when

setting up a new business:

● How much the business needs to survive during the first year?

● Sales projections

● Set up costs

● If you exceed sales projections, what’s next?


Establish a Network


Your professional network is your lifeline to so many customers, clients, potential partners,

industry information and more. Saving money by offering your products or services to other

businesses you connect with is a pretty common practice among the startup community.

Oftentimes you’ll be able to find a valuable industry connection or at least someone who can

point you in the right direction just by attending networking events and sprucing your

business.

These people can also prove to be a wealth of information, as they can provide you with a

more accurate picture regarding what it actually takes financially to succeed within the same

or similar fields.

Using social media to join groups and attend events to meet people is likely your best bet

early on. It’s all about utilising multiple sources of information, learning from others’

experiences and getting a full, realistic grasp of what to expect along your journey before

aimlessly spending big dollars.


Adopt Freebies


You’d be surprised by what you can find for free in terms of apps and tools. Software and

SaaS platforms can run you a fortune and if you can incorporate something into your game

plan for little to zero dollars, then why not?

While hiring professionals and other employees are likely one of your goals down the track,

free apps, online tools and courses should help get your finances on the front foot in the

beginning.

The initial stages are loaded with trial and error, so it’s important to mitigate financial risk.

This way, if things don't quite work out at this point, at least you haven't eaten too far into

your budget.

Look for apps that can create things virtually for free like logo design and be sure to make

use of those free trials too!


Understand that Market Research is an Investment


Got a big idea you’re just urging to share with the world? Unfortunately, skipping the market

research step and heading straight into production just doesn’t work.

An immense amount of time, money, effort and resources may be wasted if you jump right

ahead into trying to sell something with a limited associated market.

Invest some cash into research and development, ensuring your product is meeting demand

and expectations before thinking about sales and profits. Product validation is a crucial part

of any new product’s or service’s success, so knowing how to price them is also super

important.


Don’t Overspend on Advertising


The reality of online and social media advertising can be discouraging for fresh startups,

especially when your wallet’s a little on the thin side to start with.

Throwing more and more money at online ad space in an attempt to secure a wider

customer reach usually isn't the answer in the beginning.

A general rule of thumb is to spend no more than 10% of your total budget on marketing and

advertising in the first twelve months of operation - keeping it around 5% is even better!

Here’s where your efforts should be focused in the short term:

● Upgrading your website and improving its SEO rankings to drive organic web traffic

● Grow and overhaul your e-Newsletter game by offering discounts or freebies

● Rewarding loyalty to retaining recurring customers as part of a long-term strategy


Get Tax-Savvy or Hire a Pro


Tax obligations can be more or less complex depending on the operational nature of your

business and understanding them also allows you to save some money as well. There are

many ways small business owners can reduce their taxable income within their legal rights,

and hiring a tax expert for your first return could make all the difference.


In addition to learning more about Australian business tax obligations, it’s critical to also

ensure you’ve got an emergency or “rainy day” fund at the ready at all times. As seen above,

the main reasons small businesses and startups fail within the first twelve months of

introduction are simply poor financial management and an underestimation of what it actually

costs to set up, operate and maintain a new business.


Having a bookkeeping professional by your side throughout your journey can mean the

difference between knowing where to reduce costs and overspending to the point of total

financial failure!

Contact Ironbark Industries Bookkeeping today to discuss our bookkeeping services, your

specific requirements, or any other financial management enquiries.






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