Starting a new business doesn’t have to be expensive – but it often is. There are so many things to pay for early on – property, stock, licenses, staff, administration. The list goes on. A new business’s advertising budget alone is terrifying. To get yourself heard and seen can cost thousands of dollars and make or break a small business.
Securing some funding to help you do things quickly is almost unavoidable. Even as you are creating your initial business plan, you should be thinking of how to secure financing, even if you eventually don’t need it. Before approaching a bank, you should research other financial avenues to be able to portray a sense of professionalism and proactivity.
If you have savings in a retirement plan, applying for a self-managed super fund loan could be one way to fund your new business. SMSF loans can give you access to funds to start an investment business immediately, as long as all profits from the company are paid back into the loan fund until you retire. A self-managed super fund is becoming a very popular way to fund an investment business to grow that nest egg.
Everyday Outgoings in a New Business
The seemingly infinite vacuum of things ready to take your money can be broadly categorized into these groups:
- Marketing and advertising – with so many ways to promote your business these days, some serious thought has to be given to it. Securing a good SEO ranking on the main search engines takes time, dedication and money. Web design takes careful consideration to ensure the right balance between brand promotion and authenticity. Having a social media presence across platforms such as Facebook, Instagram, and LinkedIn can put you in touch with a new client base.
- Purchasing equipment and stock – Often the most expensive aspect of setting up a new business, the initial investment to get set up can be a massive whack to the wallet. The stock of course usually pays for itself, with profit, but the investment is often needed to buy stock for the first time.
- Securing a business location – if the site is essential for your business, this can be an expensive investment, but one which can be lucrative if you find the perfect place to operate from. Using the services of a virtual office can also give you an added sense of professionalism.
Keeping costs down is, of course, the top priority in any new business.