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With the country’s economy still in limbo, there aren’t many people out there who are determined to open their own businesses. Add to that the fact that the US government is still deadlocked, and doomed speaks of further economic pain on the horizon as the debt ceiling issue remains unresolved. Who would dig deep into their pockets, or even dare to march to the bank to make a big loan?
Despite the obstacles, there are great business ideas ripe for execution, and backing them, intrepid individuals with sheer willpower, are determined to make it happen. For those few brave souls who still dare to set foot and face obstacles to start a business venture, take some tightening steps to keep costs to a minimum.
However, that doesn’t mean skimping to the point of losing efficacy. It can only be as bad as overspending. Proper fiscal discipline is required to know what to invest. The luxury and unnecessary expenses can wait (or never, preferably) as a lean and determined company aims for profits and rapid growth in its early years.
Prioritize
This cannot be overstated in any endeavor, especially if the purse strings are very tight. The urge to spend a little on trivial things like a cool office, expensive marketing promotions, and other trivia is indeed a temptation that visits every young company, but before even considering all that, the things it takes to run business (and operating it well) must be put at the top of the priority list.
This also applies to hiring your first few employees. In general, it’s a bad idea to hire too many people at the start. Maintaining a slim screw is great for startups, and at the same time, for keeping the organizational structure relatively low (works flat for some, but not in all cases). Don’t hire too many managers and supervisors; this will only make the overhead cost more expensive. Hire people as needed.
Pitch In and Get Involved
This is your company, so roll up your sleeves and get your hands dirty. You have to be open to almost all aspects of the business to really gain knowledge and insight for your future decisions. Whether you like it or not, you have to trust various aspects of the operation to other people, but it’s important to know how it’s done. This will go a long way in keeping you in the loop, as well as preventing potential scams (you know, crap) by the people you hire to do the job.
Some business founders (the good ones, in particular) never lose sight of the interest and determination to get involved in their company’s operations. This kind of attitude should be the highest ideal even among the highest ranks in any company or organization.
Seriously Consider Used and Surplus Items
It should always be an option to acquire used machinery and equipment but still serve as part of an effort to keep initial costs down. Extra care should be exercised in making such purchases, as used equipment has lost some of its functional useful life, and a competent and trusted technical authority should be consulted.
A simple example can be derived from a would-be construction industry contractor who can start with a set of used trucks and other heavy equipment. An experienced and trusted mechanic should be prepared to evaluate equipment purchase possibilities, as well as determine if parts and service options are still available (and economical, for that matter).
The good news is that in today’s digitally connected world, it’s not much trouble finding cheap surplus and used equipment for almost any need and industry. Given the examples above, online sales and auction sites are like Rock & Soil can easily provide companies with inexpensive opportunities to acquire serviceable machines.
I wish all of you startup entrepreneurs all the best, and may your efforts pay off!
