Anyone knows that starting a business requires a chunky wad of cash. No matter how modest your dreams, you don’t stand a chance without money in the bank. That’s an undeniable and proven point. And, it’s the reason the majority of us never go it alone. Even the people who think they can afford it often end up with failed enterprises and empty bank accounts. The trouble being, of course, that they pile every last cent into their attempts.

But, we’re here to tell you that business should be about building wealth, not emptying your account. Sadly, we can’t work miracles. It is still important to note that you NEED to spend to succeed. But, spending too much too soon can tip the scales towards failure. After all, it could be a while before you start turning a profit. So, you need to keep some money aside. It isn’t always easy, but you should be able to achieve it by keeping the following points in mind.

Start small then build with your savings

Anyone remember the Tortoise and the Hare? The hare runs itself down, while the slow tortoise goes on to win. And, you could easily apply that to starting a business. The people who rush in pile their cash into as many products as possible. Then, they spend anything left on the best marketing campaigns. But, they go bankrupt before customers notice them. You, however, should make like the tortoise and take things slow. Only invest in as many products as you need to get started. And, keep marketing modest. At least then you’ll still be established when customers come calling. And, as your profits start to rise, you can start to increase efforts while maintaining a full bank account.

Consider cheap ways to operate

Another issue with rushing is that you don’t take time to think. A hare-brained entrepreneur will want the commercial space and big team. And, they won’t  rest until they get it. Again, this attitude will soon clear them out. But, with your slower effort, you have time to approach this sensibly. You know, for instance, that commercial space would be too much of a drain at this stage. So, think about alternative ways to grow. Your best bet here would be to turn to companies like IntelligIS, who offer cloud computing which would open remote working possibilities. That way, you can get a team onboard without clearing yourself out.

Get an accountant

Careless spenders also make the mistake of thinking they can deal with accounts in the early days. The trouble being, of course, that this is the hardest period through which to keep track. While profits may be minimal, outgoings will be through the roof. And, trying to take care of that alone is madness. Instead, get an accountant from day one. This may be an extra expense, but it’ll ensure you don’t overspend from the start. And, that’s the only real way to start on the right footing.

Thousands of people are already using TDB to improve their finances. Why not join the community and learn how to get more from your money?
We hate spam. Your email address will not be sold or shared with anyone else.