Jumping on the bandwagon of entrepreneurship is a bold move whenever it’s made, especially when launching a startup, as it usually brings mixed emotions.
On the one hand, there’s excitement because of the possibilities that being your own boss brings.
On the other hand, there are certain risks behind the corner: maintaining a steady cash flow, landing enough projects, and keeping your costs low is only some of them.
Since we want to inspire people to express their entrepreneurial potentials, we bring you five frugal strategies for a wise business start in a pandemic world.
1. Aim at long-term projects
When the business market is unsteady, companies should try to reduce their exposure to unnecessary risks as much as possible. Startups should be even more careful, aiming at stable, long-term projects.
Many of us think that we’ll take the market by storm as we’re putting our foot onto the entrepreneurial platform. However, only a smaller portion of startup owners actually skyrocket in the first year or so of their business endeavour.
Most startup owners go through the stage of trials and errors, with some of them moving onto the next stage – forming a profitable business. In these insecure times, the most logical option is to aim at long-term projects and collaborations, instead of getting blinded by potentially lucrative but risky deals.
To be more precise, this means that landing one or two clients with long-term projects is the right thing to do for a new startup owner. The initial revenues might be lower, but the long-haul potential of such projects is something that will keep your head above the water.
2. Scan the competition
Before you register your business at the local business administration, do your homework in terms of competition. The pandemic crisis has caused a lot of redundancies, so a larger number of people might be thinking the same way as you. That’s why checking the pulse of the market before you launch a full-scale business is a smart thing to do.
For instance, you can check the number of freelancers offering their services in your niche on Twine. Even if you’re not planning to work as a freelancer, it will give you a basic idea of market trends.
Moreover, join business groups on Facebook and expand your network on LinkedIn. Keep an eye on the recent affairs, with a special accent on the changes in the numbers of service providers in your particular field. With this data, you can change the planned course of your future business. For instance, a software developer aiming at projects done in one set of program languages might start aiming at a different set of options.
3. Invest in automated bookkeeping
Even experienced startup owners don’t always know how to keep their books neat. There are a lot of details that you need to cover in order to keep your records clean.
Therefore, having one or more bookkeeping tools by your side will ensure that you pay all your accounts payables on time. Also, this digital assistant will help you collect all your due receivables and file a tax return even before the deadline.
Of course, if you find it necessary, don’t hesitate to consult a real accountant to help you get through the paperwork at the beginning of your entrepreneurial quest. This kind of onboarding in terms of financial literacy might be a useful thing to do for a new business owner.
Why do we insist so much on neat books in times of pandemic? Well, if you’re not late with your payments and if you collect what’s yours on time, you’ll ensure seamless cash flow. As a result, you’ll mitigate the potential risks coming from that side.
4. Don’t rush into employing staff
Sooner or later, every successful startup owner needs an extra hand – including different forms of employment and collaboration. Some entrepreneurs decide to outsource some of their activities (an example of easily outsourced tasks include IT services: UX/UI design, development), in order to become more efficient in performing their core tasks. Others will hire workers on a part-time basis.
Some business people may even decide to work with consultants, meaning that they contact them only when they need some special advice or tips for current business issues.
While various forms of business collaborations may be beneficial for your business, take it easy on full-time employment agreements. If you sign full-time employment contracts, you have flat-rate obligations regardless of your budget and workload. This can be a serious burden around your neck in keeping your business stable.
Therefore, start with part-time employment and outsourcing. If your projects keep growing, you’ll eventually manage to hire full-time company staff.
5. Expose the startup to the world
Being a wise and experienced business owner means nothing if you don’t tell the world about your skills and your business.
In other words, startup owners should employ various marketing strategies to spread the word about their enterprise.
As the marketers from a Houston-based digital agency suggest, your marketing story should revolve around your website. This should be the central part of your online promotion. From presenting your services and prices to covering the current affairs in your niche, you can achieve a lot with a proper website strategy backed by solid web design.
It’s important to address mobile users, as well, either via a special app or via a mobile-friendly website. Their number is constantly rising, and they convert into leads or potential customers faster than desktop users.
Moreover, don’t forget about the importance of social networks. You can achieve a lot without spending a fortune via social media promotion for startups.
The global economy plays an important in the life of every business owner. Although you don’t have to be an expert in macroeconomics, you should feel the pulse of the market in your niche.
Only when you’re sure that your services and skills are needed on the market should you launch your startup. With a combination of meticulous bookkeeping, wise employment strategies, and proper advertising, you can build your business slowly but steadily. In uncertain times, like the ones we’re living in at the moment, this is a safe lane to long-term business success.