Financial Choices That Your New Business Should Consider
The financial choices you make for your new business venture can make or break it. Even minute details that seem like a blip on your monthly bank statement can be the spark that sets off a snowball of bad investments that eventually bankrupt your business. And since your business is yet to be tested, there are few banks or private lenders who’d trust you enough to give you a lifeline this early. To help you make the right choices for your business, here are six investments you should consider:
Paying for a professional website is a no-brainer investment in today’s digital world. With more than half of the population using the internet, 4.6 billion in fact, it makes sense for your business to be in that space. Managing to grab even a fraction of those eyeballs can be the momentum your brand needs to grow quickly and consistently. The cost of building a professional website varies and will mainly depend on which one of the two routes you decide to take – hiring a freelancer or using a website builder platform. You may also need to consider hiring an in-house website manager or engineer to maintain the website.
Having a website for your business should be one of the first things you do in order to get your new business up and running. People are able to check out your company and find out what services or products you provide. It also gives them a chance to view other information about your company which can attract new customers as well.
Running a business always involves a degree of risk, whether it’s in the form of a lawsuit filed by a disgruntled customer or a typhoon that turns your retail store into a wasteland. A comprehensive business insurance policy can help cushion the financial blow when any of these unfortunate, albeit inevitable, events occur. Aside from expensive lawsuits and settlements, a business insurance policy can also cover property damages. This helps expedite the process of renovating your store or office and minimizes your business’ downtime.
Contact a professional in order to get an estimate of how much this will cost you. You will need to budget and make sure you are able to afford your monthly costs and all of your overhead. This will show you how soon you might be able to start making a profit after you open.
Centralized technology is a forward-thinking investment for your business’ future IT needs. As your business grows, it gathers more data and uses more technologies that it did not initially require. Upkeep of these individual technologies can, however, eat up a significant amount of your resources. Efforts to centralize your IT infrastructure can cost money, but it also helps save you money by simplifying administrative tasks, improving cybersecurity, making data management effortless, and streamlining project collaboration between multiple departments and teams.
Hiring top talent is a rigorous and expensive process. Nonetheless, who you let into your business can drastically impact your bottom line. Invest in building a better workforce through a well-funded HR department that has the resources to thoroughly screen candidates and make an offer that entices top industry talent. In addition, put money into HR initiatives that empower your existing employees, including extensive training and specialization courses. Throw in some benefits and discounts to sweeten the offer and to minimize your business’ attrition rate. Remember, it costs at least six times more to find and hire a new employee versus retain your existing ones.
Treating your existing employees well will not only benefit them, but it will also benefit you. Having a high turnover rate can waste other employee’s time and will cost you in the long-run. Taking the time to make sure your employees are happy and being treated well can also increase your profits.
A website that isn’t accompanied by a mobile version can be seen as less professional or even sketchy by some web users. Nowadays, having a mobile app is a badge that symbolizes trustworthiness and legitimacy. If that’s not enough to convince you, take note of the fact that there are over 5 billion people using mobile devices today, according to a recent report from GSMA Intelligence. In addition, last year, there were 204 billion app downloads recorded globally, according to studies. As with a website, you can choose to either hire an independent contractor or use an app builder to create your mobile app from scratch with minimal to no learning curve necessary.
This can be a great way to stand out from other businesses in your industry. It is important to take risks in order to stay competitive and attract new customers. It will also give you the ability to customize exactly what you want on your app and how you will make it work with your business.
Social Media Marketing
It’s completely possible to advertise for free on social media platforms, like Facebook and Instagram. Simply create a page for your business and start adding, liking, and following back other users. That being said, this approach to social media marketing also doesn’t return much in terms of high-quality leads and brand exposure. Planned thoroughly and executed precisely, paid social media marketing can bring in more views, subscribers, and customers to your business.
Make sure you are taking the time to create more quality content for your followers to see. It will show them more about your company and can entice them to buy some of your products or services. Being active on social media is imperative in order to keep your brand more well-known in your area as well.
The first few months of any new business is crucial. In addition to the smart financial choices listed above, you should also steer clear of any debt or giving away any equity to lenders in order to maintain full control over fundamental decisions concerning your business.