It’s been said that companies don’t fail due to a lack of profits, they fail due to a lack of cash.
Marketing the product or service of a new business can be distracting that you take your eye off cash. It’s a particularly dangerous time because you spend a lot of cash on marketing.
Inevitably, this can lead to quick depletion of any cash that you started with.
Here are some tricks that can help you manage your finance.
GO IT ALONE
Primarily, you need to have an idea of what sales volumes are likely to be. Nobody will know your products and services better than you at the start, neither will they have the same passion for the business like you.
At the early stage, you need to meet and speak with as many potential customers as possible. Get an idea of what you can sell and what the size of the market for your product is, also try to gather genuine feedback on your products and services.
When you’re certain that the market is there and the products and services are right, you can hire with the confidence that the additional cost will be covered by the increased revenue from sales.
Also, in the early days of your business, you may have family members and friends who would be happy to help out at little or no cost.
WORK FROM HOME
In the early stage of your business, spending your little cash on a costly office will do nothing to help you make a better product or generate more sales.
Working from home at the early stage will save you the cost of commuting and cost of renting an office space.
USE ORGANIC SOCIAL MEDIA MARKETING
If you are very creative with your brand, you can use social media to establish a real buzz about your products and services. We’ve all seen how twitter trend campaigns and Instagram videos can go viral.
Social media will also help you build a solid relationship with your potential customers, and get feedback from them.
BUY USED EQUIPMENT
When you set up a new business, there’s this temptation to buy new, classy equipment.
In some cases, this is the right thing. But, it’s worth looking at second-hand options. Purchasing good second-hand equipment can be an excellent way of saving a huge amount of money that can be used to market your product and in turn increase sales volume.
If you keep a keen eye on cash, you’ll be giving your business the very best chance of success. Above all, your ultimate target should be to increase your customer base.