For many, the idea of cutting corners in business is a very negative one. Yet according to Score, lack of financing is the second most reason that startups fail. It is vital to the success of your business that you are as efficient as possible when starting out, and in the future. The key is to learn where it is okay to cut corners in business startup and where it is not. Let’s take a look at a few examples of where to cut corners in business startup and where not to. These next 2 articles will focus on where to cut corners when starting up a small business, and where not to cut corners. For this first one, let’s look at “the dos.”
Do Scale Back Your Business Idea
While you may have big dreams and plans when It comes to your business, the reality isn’t always a willing participant. You might want to own a huge tech business or start your own restaurant chain, but it is much more practical to start small and build your way up. Score advises that you could find ways to sell your product or idea online, or just start out smaller with it. As your profits and customer base grows, you can grow your business into what you dreamed of.
Do Maintain Another Source of Income
While your business is getting off the ground, it is unlikely that you will be able to put aside very much for your own salary. Remember it is not only important that you keep the business above water, but you also have to keep yourself afloat as well. If you cannot keep your current job while starting a business, at least find some way to bring in your own income, whether it be part-time work, freelancing, or another source.
Do Keep Track of Money Owed to You
This one may seem like a no-brainer, but there are often times that entrepreneurs, new business owners, freelancers, and others can lose track of money that is owed to them. If your income is brought in from several different sources, you might sometimes miss billing someone for services rendered, or put off asking them about why they haven’t paid you. It is important to keep track of what is owed to you and not to be afraid to ask when someone owes you money. An accounting program can help you keep track of all of your ingoing and outgoing cash. If clients taking too long to pay is a problem, consider upfront payments, or at least half up front until trust is established.