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. This and the prior articles focus on where to cut corners when starting up a small business, and where not to cut corners. For this secind one, let’s look at “the don’ts.”
Don’t Skimp on Marketing
You can have the best product in the entire world, but if no one knows about it, you cannot make the sale. As QuickBooks explains, “A successful business of any kind requires a strong marketing plan that identifies its target markets and outlines strategies for reaching them.” Although you might be tempted to cut corners in marketing to save a dollar or two, don’t. It isn’t worth the cost. If you don’t feel that your business can afford to pay for marketing, you might choose social media, emails, and website content to build your brand and do your marketing.
Don’t Use Second-Rate Equipment or Technology
This is a hard one. Office equipment can be costly, and it changes rapidly. The latest and greatest thing today may be obsolete in just a short time. It can be tempting to buy second-rate computers, printers, and other office equipment or use slower cheaper internet. It is important to realize, however, that by trying to cut costs here you could actually end up costing your company more money. Productivity can be seriously slowed down with second-rate equipment and internet. QuickBooks also points out that skipping IT upgrades and cutting corners on a tech budget can put your client’s information at risk, and that can cost you money, clients, and reputation.
Don’t Spend a Fortune on Office Space
Yes, it is important to make a good impression, but there is no need to spend a fortune on commercial space for lease for an office. Many entrepreneurs make this mistake when they decide to make the move from a home office to a commercial office. They will spend too much of their budget on a huge commercial rental space to create an impressive office. On top of the outrageous monthly lease payments, they also pay for utilities, high-speed internet, equipment such as printers and smart TVs, cleaning services, and more. With a shared office space to rent in Wellington, such as those provided by Offix, a startup can enjoy an office space for lease for a fraction of the cost; and all of these additions are included at no extra cost! Private desks, private offices, video conference rooms, meeting rooms, high-speed internet, television, and even cleaning services are included in the lease package. These small offices for lease can be rented by the day, the week, the month, or the year depending on your needs and budget.