When it comes to launching a start-up, there’s an awful lot for new business owners to think about. It’s not as easy as a bolt of inspiration and a sudden exciting beginning – rather, there’s an incredible amount of time, planning, and investment required to get you from A to B.
With regards to the latter, you’ll need to spend a significant sum before you make your first sale, which can be a rather daunting prospect. What’s important, therefore, is knowing when and where to invest.
That’s because some purchases can wait until later, whereas others should be in place from the word ‘go’. Here are five of the most important for you to factor into your budgeting.
Before you go any further with your business plan, we’d advise you to cover your back and ensure you’re properly protected. This means taking out an appropriate policy, so business liability insurance costs should be viewed as an essential expense from the outset. The best way to find a policy that’s suited to you is to look for a coverage that can be tailored to your needs, so try to find a provider who understands your industry and has more than one product for you to choose from.
In today’s world, most businesses will need technology to help take them to the top of their game. Ideally, you want to have this in place from the start, but this doesn’t necessarily mean you’ll need to break the bank. Plenty of computer equipment and machinery can be picked up second hand, while there are usually cost-effective alternatives to the most sought-after software on the market. This means that while you will have to spend to get what you need, you shouldn’t be forced to splash your entire budget on tech.
In addition, we’d suggest you invest some funds in developing a website that really knows how to showcase your goods or services. If you’re relatively tech-savvy yourself, there are lots of useful website builders available to help you, such as Wix and Shopify, but if you feel out of your depth, it may be better to enlist the services of a professional. While these won’t come cheap, they will make a big difference to your online persona and should add an air of professionalism to your endeavor.
Once you have the website and the goods, you need to make sure that people know where to find them, so it’s time to invest in proper advertising for your business. To an extent, this can be tailored to your budget, with online marketing in particular offering lots of cost-effective options. Search engine optimization is worth looking into for those who are not already familiar with it, and more traditional forms of offline marketing can be useful too.
For those who don’t plan to launch a solely online enterprise, you’ll also need to invest in suitable premises before you begin. It’s usually best to start by renting, as it’s difficult to assess the longevity of a business in its infancy, so you don’t want to tie yourself into anything more permanent. Remember that location is key, and that easy access, footfall, and the suitability of the wider neighborhood are the three primary factors to assess.
Isn’t it time you started planning your new business venture with these five essential expenses in mind?