Updated: Sep 28, 2018
Lack of cash is what usually puts people off when deciding to start a business. But, is it really just a pipedream?
Despite a somewhat uncertain political climate, the U.K. remains the place to turn your business dreams into a reality. Intuitive taxation for startups and a solid variety of financial schemes to help you keep afloat ensures that these shores are the place to make it.
Sometimes a little bit of perspective is all that's needed for even the most organized of CEOs to batten down the hatches and prepare to pinch their budgets -- and in that spirit, I've created a list of four essential tips to avoid going overboard with your finances.
Revise, revise, revise.
It's important to do your homework when setting up any business, let alone one that needs to be precise in avoiding miscalculations. Even if you have the best niche, or are tapping into the most untapped of markets, there's bound to be competition in many forms around every corner.
Take the time to investigate the market that you're about to dive into. Look at how your closest competitors shape up and how their services perform -- this gives you a strong platform to optimize your operations based on what you've found. One effective way of doing this is to analyze your competitors' websites and see what they're doing.
It's also imperative to get into the heads of your target audience. Think of their needs, wants, expected price ranges -- you'll be scoring a big own goal if you're not sure of who you're marketing to.
Gaining an informed idea of your competitors and customers will pave the way for an understanding of how to price your goods and services up. It's a popular practice to offer different levels of subscriptions and products. Being able to competitively price up your Basic package while identifying a large potential audience that'll have an interest in your Pro service and creating an attractive premium price can make all the difference between returning a profit and loss in your first few years on the scene.
Squeeze every penny.
It probably goes without saying that every penny needs to be squeezed when you're operating a business on a tight budget, but it's still worth hitting home the point and looking at how this can be achieved.
Cutting your expenses is vital, and your advertising campaigns need to be smart. Rather than paying through the nose for a wide-reaching television or billboard campaign, choose to target the audiences that will bring you the best conversion rates. Get into the minds of your target market and advertise to them in the places they're most likely to see it, through targeting the types of Facebook groups they're likely to be part of, reaching them on Twitter or targeting professionals on LinkedIn.