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Starting a Business? Things to Watch Out For to Keep Your Pennies Going Far

Starting a businessStarting a new business is always a risky venture, or so it can seem in the early days!  Keeping an eye on your incoming and outgoing costs is a sure-fire way to ensure that you are making wise decisions financially and that you won’t run aground after only a few months in operation.  Whilst it might seem quite daunting to begin with, there are a number of ways you can keep a tight rein on things whilst watching your little business grow into your dream company.

Financial Planning

Planning is key to keeping your company afloat.  Draw up regular reports (You can find templates to help with your financial reports online). Reports can help to show how your money is being spent and the money you are receiving in.  The best way to keep up to date on your financial situation is by reviewing it on a regular basis.  Don’t be afraid to plan for the future either, it’s a great way of focussing the income you do have and will give you a long term goal for how any income can be spent.  Budgets are important in all areas of life, even more so in the business world so make sure you draw one up and stick to it.

If finances aren’t your strong suit then invest in the services of someone who can help you to set realistic goals for how your business will grow and develop financially.  Don’t attempt to struggle your way through, if you don’t know exactly what you are doing then you run the risk of making mistakes which could prove costly.  If you need help then admitting it in the early stages can set you in good stead for the future.  It is generally recommended to hire an accountant to help you with this – this article shows you the possibilities.

Thing Big, Start Small

Okay, so sitting in a brand new office, surrounded by all the latest technology might sound like your dream space but in the early days it could be entirely unpractical and unnecessary.  If your business operates without the needs for clients to visit then having a flash office is likely to be an expense you can’t afford.  If you do need to have space for client meetings then consider shared office spaces, these offer small businesses access to conference rooms and facilities without having to bear all the costs.  Keep in mind that one day you would like the brand new office space, but build up to it slowly.  It will be better in the long term! You may also consider working virtually – this article shows you the advantages of working virtually.

Equipment Needs

It is likely that you will want to invest in computer and phone equipment.  Research different phone contracts to make sure you are getting the best value and make sure that any contract you take out works for your company’s needs.  Contact experts from sites like Mobi-data.co.uk for help on getting good coverage throughout the UK. Likewise, you may find that a laptop makes a smarter investment than a desktop computer, so consider exactly how your company will operate and buy equipment accordingly.

Take Your Time

Above all, appreciate that most businesses don’t just explode overnight.  It takes time and investment to grow a successful business so try not to become frustrated if you feel like your business isn’t expanding at the rate you had hoped.  Don’t be tempted to make foolish investments with your money to try and get one step ahead of the game.  If you make careful and wise decisions then you will reap the benefit of those decisions in the future.

This post was submitted by a guest author. 

Image: Freedigitalphotos.net/Krishnan

About Kim Parr

Kim Parr is a private practice optometrist, freelance writer, and personal financial blogger. You can follow her journey to 20/20 financial vision at Eyes on the Dollar.

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