Three Ways to Scale Your Business on a Budget
October 12, 2020 by Alexis Babiarz
There are many benefits to self-funding your startup. Using your own cash means you’re not beholden to investors, so you don’t have to worry about an exit strategy. It means you can run your business the way you want, without having to heed outside demands or constant ‘suggestions.’ But it’s a strategy that’s not without its challenges.
Going it solo financially requires you to have readily available cash to run the business. So you will need to be adept at budgeting so you don’t run out of money.
Below, we give you our top five tips for growing your business on a budget.
Pinch Those Pennies
The first lesson of budgeting is to spend only what you need and to avoid frivolous purchases. That’s particularly important when you’re the only bank.
- Before buying anything for your business, ask yourself a few questions, such as:
- What effect will this purchase have on my business?
- Is buying it essential to the growth of my company? Look for free options wherever possible.
- Furnishing your home office? Before buying a desk, chair or bookshelves, check with neighbors, local friends, and acquaintances to see if they’re giving away any of the items on your list.
- Need a new computer? Go refurbished rather than brand-new, and do your homework on the best type of computer for you. You don’t want to pay for bells and whistles you don’t need, after all. Then, deal hunt and compare prices among websites.
Finally, when faced with the choice between basic and premium anything, go with the basic (provided, that is, that a gratis version is unavailable).
Put Profits First
A startup is a lot of work but resist the urge to hire immediately in order to offload some of that burden. Instead, focus on bringing in revenue before trying to build up a staff. That will keep you focused on your customers, the people who will determine whether you succeed.
“One of the problems with raising money is it teaches you bad habits from the start,” Jason Fried, co-founder of software company Basecamp, told the New York Times. “If you’re an entrepreneur and you have a bunch of money in the bank, you get good at spending money.” Those funded with only their own cash, on the other hand, “get really good at … making money,” Fried said. “And that’s a much better habit for a business to work on early on, to survive on their own rather than be dependent on money people.”
Go Unorthodox on Office Space
One of the biggest cash outlays for every business is rent. Given the current (and probable future) landscape for much of the knowledge workforce, this spend is no longer tenable. But rather than try to run your new business from your home, with its many distractions, consider coworking. Flexible, affordable, and amenity-rich, top coworking spots will give you a range of work-space options, from lockable, private offices to communal quiet-work areas — while saving you a bundle.
Looking for professional coworking space in and around the nation’s capital? Metro Offices, the leader in flexible and temporary workspace in DC, has you covered. Browse our nine locations today.
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