The first year can be a truly tumultuous time for any small business.
As such, it should come as no surprise that many fledgling enterprises have very limited resources to work with during this period. So, any small business owner looking to stay afloat past their first year would do well to conserve resources until such time as their enterprise has taken off.
While this may strike certain business owners as an uphill battle, saving money during your first year is a much simpler undertaking than you may think.
Avoid Renting Office Space That’s Well Outside of Your Budget
It’s easy to see why so many first-time business owners adopt a “go big or go home” approach to selecting office space. After all, renting an office that contains an abundance of space or is located in an expensive area can serve as an indicator of confidence and success.
However, in the absence of an established customer base, such office space can quickly bleed your finances dry.
So, when seeking out suitable office space, make sure to carefully consider how much space your business truly requires. While the desire to rent a lavish office space is perfectly understandable, this generally isn’t the best move for businesses that have yet to establish or are working with very limited resources.
Just remember that you don’t have to be married to your first office space and that if you have a successful first year, relocating to a more accommodating space may be a viable option. Arizona-based entrepreneurs on the hunt for Tempe office space would be wise to keep things sensible.
Don’t Waste Money on Ineffective Forms of Marketing
Before even opening your doors, you should have a solid marketing plan in place. This entails identifying your business’s target customer base and the most effective ways to reach said base.
For example, if you’re hoping to catch the attention of a young, tech-savvy demographic, you’d do well to focus your promotional efforts – and resources – on digital marketing.
Social media platforms, search engine optimization (SEO), and pay-per-click advertising are just a few of the promotional tools businesses utilize when targeting younger demos.
On the flip side, if you’re going after an older demographic, your marketing dollars may be better spent on ad spots on local television and radio outlets, as well as ad space in local newspapers and assorted print publications.
If you have little to no experience promoting a business, you may find working with a knowledgeable marketing company to be well worth your while. Seasoned experts will help you identify promotional avenues that are uniquely suited to the type of business you wish to open and play an instrumental role in crafting and implementing effective marketing strategies.
Work With Contractors
Hiring too many full-time team members right out of the gate can place a huge strain on your finances, particularly if certain roles don’t necessarily warrant full-time hires. So, if there are any services your business requires on an as-needed basis, consider working with contractors.
This will ensure that you’re able to receive these services without having to pay full-time salaries for work that doesn’t warrant a full-time commitment.
Working with contractors can also be a great way to find new team members. For example, if a contractor consistently goes above and beyond the call of duty, you may want to consider bringing them aboard full-time somewhere down the line.
The more business you get, the more often you’re likely to require certain services, so if there’s ever a need to expand a contract role into a full-time opportunity, don’t forget contractors who have made important contributions to your business. As an added bonus, rewarding high-performing contractors can serve to motivate other contractors with whom your business regularly works.
The success – or lack thereof – of a small business experience in its first year stands to make or break its long-term solvency. Additionally, business owners who are looking for effective ways to make this crucial period less stressful should consider conserving resources.
While it’s true that one must often spend money to make money, it’s important to avoid taking this line of thought too far. Fortunately, with the pointers outlined above, fledgling small business owners can avoid overspending during their first year and beyond.