There are few actions you can take with your new business start-up decision making that will benefit you more than cutting down your monthly cash flow. Every dime you can save is another day you have to find success!
It’s always a good idea to save money wherever possible in a startup business endeavor. My advice is if at all possible in the early stages designate a portion of your home as your base of operations. Think seriously about this even if you are well funded as it will take some time to work out the kinks of any new business. Once you are comfortable find the smallest space possible that can suit your needs.
Carefully calculate your storage costs and once again if you can store your initial products somewhere for free you should do that. Office location costs and storage expenses are one of the biggest reasons businesses fail. Operating in a painfully small spot will give your business time to grow.
Best Uses for “virtual” offices.
Virtual offices can provide you with a very inexpensive and often wise option in the early stages of business setup. This method will give you an office address, a meeting place when needed and much more professional more professional “optics” for your business.
Often virtual offices range from $100-$250/month. Pay extra attention to the fee schedule of the company providing the virtual office. These extra fees can include mail collection, mail forwarding, appointment scheduling and much more so make certain you get a list of all the fees before you sign the deal.
One major advantage of virtual offices is once you have procured the address you can change the address of your company from your home to your virtual office. This has many benefits- one of them is you will receive some free advertising because as a business address you can list your location in local listings which can be beneficial if your business can make use of the extra exposure.
Another benefit of virtual offices is clients (and others) can mistake your home address for a physical business they can visit (which is usually quite undesirable). If a client attempts to visit you in a virtual office it is usually located in an actual office building. The front desk will contact you when this happens and you can then make an appointment with the client.
Saving money on location and storage (and your initial labor costs) early on may be more important than many realize… If you DO wind up looking for 3rd party capital the first thing they will analyze is your burn rate. All but a very rare few balance sheets for startup businesses look ugly in the early days but cutting those early expenses can make an investment in your idea look a lot more appetizing than others.
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