FINANCIAL PATHWAYS EVERY SMART ENTREPRENEUR MUST AVOID
It is certain that you will handle fund but what is not certain is using the fund appropriately. One of the biggest financial mistakes that are entrepreneurs make in their early starting phase are nail-biting because they could have been avoided. Being a boss and at the helms of affairs is a pretty good feeling but it definitely comes with a lot of decision- making.
I know you‘ve got all the financial discipline but money is yet to see the most financial disciplined person ever.
There is no doubt that you want the best for your business but…. Hey! Pause for a while. Here are start-up expenses you will need to avoid even if you are cash- flush;
Expensive Subscription-Based Services
If you will be using subscription-based services you will need to find out services that are affordable and won’t shoot up your initial budget. Marketing automation, internet service providers, pay-TV channels, business solution providers or financial services can be necessary spends. However, just because it’s a necessary spend doesn’t mean you should jump at the most popular service.
Having a large workforce going about business activities can be a thrilling sight but the thrills leave drilling sights in your purse. It is absolutely noble to be an employer of labour, Unfortunately, if your business isn’t ready to handle the overhead in the early startup stage, you could drain your funds quickly. Having employees you will struggle to pay is certainly not healthy for your business, you can resort to the use of ad-hoc staff, interns or virtual assistants.
At a point in time, you will require the services of a legal practitioner but you can’t afford that at the moment. The most appropriate thing to do is not to use a big law firm, negotiate for lower rates when you need legal service – Get documents like operating agreements, form contracts and terms of service online by doing a quick Google search, then have the lawyer finish up other proceedings.
Sorry, you can’t run away from taxation but you can find your way around it. Even if you are not making a huge profit, you will still probably owe something. Having a sound tax strategy will help you maximize the amount of money you have to reinvest each year in your startup. Seek the advice of a tax expert to ensure you are getting all the deductions that you are eligible for.