Many small business starting out, find out early that wasting time and money will only hurt them. To be successful in your small business you need to be smart with your money. It is important to spend it on what will make your business successful. Small business owners need to understand what makes their customers happy, not what makes them happy. Here are ten common ways most small business owners waste their money:
1. Stop Wasting Money on Fancy Letterhead and Custom Logos
Having these icons for your small business will make you feel good but they don’t necessarily bring in the cash. When starting out in small business, rely on simple template packages that many word processors include. You can use them to make your own business cards, letterhead, and invoices with little overhead expense.
2. Stop Wasting Money on an Impressive Address
If your business is not required to have a fancy office, why pay for one? Using a spare room, the kitchen table or out in the garage will save you lots of rent money.
3. Nobody Needs a Company Car
When starting out in small business, you don’t need the latest luxury car. The car that gets you around town is just fine. A new car is just a waste of money. Remember to log your business travel so that you can deduct the mileage.
4. Watch Your Costs on Websites, Brochures, Signs and Advertising
Small business startups need to watch their money and these items can be bottomless holes. When first starting, take advantage of simple websites, brochures, signage, and advertising. When your business grows, you can spend more on these items.
5. Small Business Consultants Can Cost You Money
Many small business consultants will never be worth the money. Small business startups can be run with common sense. With the infinite resources available to the small business owner, consultants are a waste of money.
6. Don’t Be Someone Else’s Experiment
Many new business owners look to other small business owners for a way to get started. Beware that you may end up as their venture capitol as they try to start their business. Look for the established vendors to help you start your small business.
7. Test Market Your Ideas Before Spending Your Money
Just because you have a great idea and your friends all agree with you that does not mean it will be a success. When it is your own money on the line, test market your business first.
8. Learn to Research Thoroughly
Identify who your customers are. Chances are they are not like you, and you are not like them. Research on what they watch, eat, read, and play with and then design your business to appeal to them directly.
9. Never Underestimate the Competition
A small business needs to understand their competition whether it is direct or indirect. You need to know if there is a place for your small business within this competition. If not you maybe working very hard when you should have been rethinking your position.
10. It is Not Your Product or Service That Sells
Your product or service will not sell itself. A great marketing strategy will always trounce a great product. (Snuggies?) A great small business owner will always be successful if they are always looking for ways to get their product or services into the hands of their customers.