Thursday, November 2, 2017

Don't Get Ripped Off When You Start Your Business

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Starting a business is hard work. It will swallow up all of your time and cost you a few hours you didn’t know you had. This means you’re tired but excited. And you’re vulnerable to get ripped off. Making bad decisions at this early point could lead to disaster and failure before you ever get going. Here are just a few ways you can lose your cash and reap nothing from your new company:

Going in too big too soon

Sure, we all want to make a great impression. But if you’re not comfortable with being the little guy, all shiny and new, you might be about to make a big mistake. Pretending to be bigger than you are could be expensive. You might choose to take on formal premises before you’ve seen your first sale. Perhaps you’re registering as a formal company structure before you have the cash available to pay your accountant each year?

Spending money before you’ve made money could be harmful to your financial health. Start as you mean to go on. Test the waters with an honest approach. You might be charging less, but you have fewer overheads at this early stage. And no, you don’t have a business if you don’t have a customer. Avoid the financial woes of legal obligations when you don’t yet need to get that involved.

Hiring staff is an enormous responsibility. These people depend on you to be able to put bread on their tables. Don’t go giving false impressions that jobs are secure and financially covered for a year if they’re not. Be honest and tell them if it’s commission only. Let them make an informed decision. They might walk away, or they might work their backsides off to help you take your company to success.

Tech troubles

Lots of companies have tech teething troubles in the beginning. You’re not sure how much you should spend up front to give a good impression but protect each transaction. You can’t afford to let fraud cost you. You might need to invest in state of the art identity verification services if your business requires it. Smaller value goods and services should also be protected. Use reputable paying services, and take secure website options if payments come in this way.

As for maintaining your website, you don’t have to spend a fortune here. A good hosting service should offer near 100% uptime. And first year hosting is often offered at a hugely discounted rate. If you’re not really sure what you’re doing, then choose a WordPress option. This is as simple to figure out as it gets. Pick a template, add the plugins you need for marketing and shopping cart facilities. Then start posting your content and pages. You can invest in a professional upgrade later when the money starts coming in.

Secure data is essential. After all, you’re handling customers’ personal details like their name, address, phone numbers and credit card details. If you prefer to store this offsite in the cloud, make sure you have a high-security service provider. This might cost a little more, but you will be offered certificates to post on your website that will enhance customer confidence. Essential for the sale!

Other Essential Services

If you’re not sticking it out as a home business right now, make sure you’re not ripped off by service providers in your new offices. Cleaning services, telephone and internet providers, and even security services are essential. The trouble is, you might be paying for more than you need at a price higher than is necessary. Always shop around, and don’t be afraid to negotiate. Energy bills, waste services, and window cleaning will all be added to your basic rent. Can you afford to do this right now?

As soon as you’re in formal business premises, the overheads for your company will shoot up. You need to decide where your money is best spent, and what you can live without for a while. The higher the overheads, the higher the price you need to charge your customers or clients. Are you at that place yet, or do you need more proven experience and client history?

It’s not easy to stay on top of the cost of running your business. This is why so many entrepreneurs get the clients before formalizing their business structure. If you’re working with business clients, you might be credit checked, and a formally registered company might be essential. Of course, virtual offices and assistants might be able to help you here. Where do you need to spend to stay safe and viable when you start up?

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