You’ve made it; you’ve finally started your business. Becoming an entrepreneur is exciting, but it can be overwhelming as well. You are constantly facing different challenges, and dealing with all of them requires patience as well as a detailed strategy.
It takes money to make money. You have doubtlessly heard about this saying, and it is true. Even with a tight budget, you still need to make some investments in your business in its first year. Many entrepreneurs fail to develop a realistic budget and a detailed plan for their business. They end up spending too much too soon and unfortunately, they fail. The mistake they make is that they want everything all at once while their circumstances don’t allow it. You need to know your priorities and plan your investments accordingly.
In order to avoid this, we bring you a few tips on investing during your first year of business.
Hiring an Accountant
Most new business owners are swift to decide against hiring a professional accountant in the beginning because their budget won’t allow it. However, they fail to grasp the importance of doing it. While it represents a major expense for a startup, an experienced accountant can help your business survive. And not only that; they can also help you grow your business, keep track of your money, know what to invest in, etc. In short, they will monitor your cash flow and help you develop a bulletproof strategy for the future.
Clearly, having an accountant in-house brings numerous benefits to your business and studies have shown that. However, if you absolutely can’t afford to employ someone in-house, you can outsource. The most important thing is that you have a professional on your side to help you with all the accounting issues.
Office Safety
In business, you don’t do anything without planning and thoroughly examining the situation. However, you can’t put a price on safety, so that is clearly on the list of investments to make in your first year of business.
Making your office space safe is crucial for you and your employees, which means you need to install fire systems and locks, and reliable fire ducts. A security system that sets off an alarm in case of emergencies is highly recommended. You should also make sure that all your entrances are secure and that you have easy routes to exits in cases of emergencies.
Your Salary
It’s not uncommon for business owners to omit to pay themselves when they first start a business. They are willing to sacrifice their personal income and work hard to get their business up and running. However, this is another thing you should definitely invest in. Bills will be piling up and if you don’t pay yourself, you will find yourself in an uncomfortable position which can further put your entire business in danger.
Equipment/Tools
Needless to say, you can’t open a bakery or shop, for example, without the proper tools. You cannot work without the necessary equipment, that’s certain. That means that investing in the equipment that your business needs is a must. No question about that. However, there are ways to cut your expenses when it comes to this.
If the budget is tight, which it usually is for new business owners, you can consider getting used equipment instead. It will save you a significant amount of money and still get the job done. There’s no reason you can’t get new, fancy equipment later once the money starts pouring in. But in the first year of your business, used equipment in good condition is a great option.
Workspace
Let’s face it, work is where we spend most of our time every single day. That is why it is important to make your workspace comfortable and inviting. That does not mean investing huge amounts of money into decorating it or renting a fancy office. You can do that once your business starts bringing profit. But regardless of how humble your first office is, it is important to have a comfortable chair since you will be sitting in it all day.
You should invest in the essentials when it comes to your workspace and that means getting the right lighting as well as a large table where you can work comfortably.
If your budget allows it, you can make further investments in your workplace because there is a correlation between modern, comfortable office spaces and happy and productive employees.
Getting through the first year of your business is tough. Unfortunately, many entrepreneurs don’t make it to the second year and this is often caused by not investing in the essential things. By failing to realise what the essentials are and by not making a plan. Consider the aforementioned tips when making your business plan and make sure you invest in the right things.
Micael Deane
Michael Deane is one of the editors of Qeedle, a small business magazine. When not blogging (or working), he can usually be spotted on the track, doing his laps, or with his nose deep in the latest John Grisham.