Investing in Your Business: Starting on the Right Foot

Starting a business is exciting. It can also be expensive. Here we discuss what you really need to get started and what expenses can be deferred.

Investment or cost?

In the initial days of setting up a business you can face a one-way flow of money – lots out, very little in. Navigating this imbalance requires careful monetary management as well as a clear understanding of investment versus cost.
Simply put, investments are intended to generate returns at some point, costs aren’t. So it makes sense to keep an eye on costs where possible. But you can create future problems if you treat an investment as a cost, because it can suppress the success of your launch and hold you back.

Investing in your business foundations

You’ve got the idea, the passion and the drive to bring your idea to fruition and take it to market. You need to tell people about it, get it in front of your target audience and sell them the benefits.

Where are you going to start? With the foundations.

1. Branding

Your business branding defines who you attract, how they respond, what they expect and how you compare to your competitors. It extends beyond the name and logo to the design elements, colour and fonts, tone of voice and style of imagery. It says everything about you.
With this much riding on your branding, it’s an investment area that needs to be professionally executed. Look the part from day 1 and subsequent days will be easier, but try and cut corners and you are simply making it easier for your competitors.
Use a branding expert, a copywriter and a professional photographer to give you a brand personality and style that positions you as a serious player. It’ll be money well spent and free you up to look at your next investment area.

2. Website
It is virtually guaranteed that you will need a website. (If you don’t think you do, there must be a really good reason). And websites are where so many people try and cut costs, to the detriment of their business.
Your website is your shop window, shop door and shop floor. Once people are in, it works as your receptionist and sales rep. It is your business differentiator, enquiry handler and lead generator. You may be a sole trader working from your kitchen table, but your website can position you as a serious alternative to the most established and successful competitors in your market, in both the way it looks (see point 1 about branding) and how you target your prospects.
Get your website right in the design, layout, copy and content and no-one will know you are the new kid on the block. It’s a key investment area that needs professional input.

3. Paperwork and policies

You probably weren’t attracted to running your own business because you wanted to deal with all the admin, but it’s an unavoidable aspect of self-employment. Get everything in place from the beginning and your business journey will be easier.
You will need a variety of documents (depending on your line of work and whether you employ people0 such as contracts, Ts and Cs, NDAs and employment agreements. Their purpose is to protect you if things go wrong, so need to be watertight. If you don’t treat them as a business investment at the start, they may well cause you unnecessary cost in the future.

4. Insurance
You may need specialist insurance for your particular line of work, or general insurance such as public liability, product liability, professional indemnity, employers’ liability, buildings cover, contents and stock cover, theft of takings, business interruption, cyber insurance and legal expenses.
Talk to a solicitor and an insurer to understand what you need and the levels of cover. It’s a false economy to buy the cheapest insurance, because it’s there to help when things go wrong, not to save money when everything’s going ok.

5. Technology

This is where it becomes less clear. You’ll need computers, mobiles and printers and maybe more – but do they need to be top-of-the range, state-of-the-art, or can you economise?
This will depend on your personal preference and your line of work – but be equally wary of overspending on unnecessary technology as you are of underspending on kit that’s not up to the job.

Build up from solid foundations
There’s a lot to juggle when you’re setting up in business and cash flow is one of the biggest challenges. But don’t be tempted to cut corners and jeopardise your success unnecessarily.
You have set up in business because you believe you can offer something to your customers that they can’t do themselves. Apply this same view to the foundations of your business – if there is someone who is more qualified to do a job, pay them t do it. And you can then focus on building upwards, confident that you have robust foundations.
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It’s an effective way to find the right expertise to help you build and grow your business – and have fun along the way.
For details about your nearest group and how its work, contact Barbara Hodgson on 07504 946 585/ 01933 652884 or www,yourbm.wpengine.com/.