5 Ways Entrepreneurs Can Keep Their Budgets Under Control

The idea that starting a business today requires a huge injection or capital or a brilliant idea is incredibly misleading.

From service-based businesses which deal with clients face-to-face to online consulting firms, the seeds of a profitable company can be sewn with less than a few hundred dollars. Although the concept of a “lean” start-up is nothing new, the fact remains that entrepreneurs today should focus first and foremost on starting an actual business versus a flash in the pan dream.

Perhaps the most important aspect of running a successful business is keeping your budget in check. Rather than daydreaming about parties in the Hollywood Hills, keep yourself grounded and instead think about how you can drive down the daily costs of doing business.

The following tips for keeping your budget in check are fair game regardless of whether you're operating online or in-person.

Reconsider How Your Structure Your Team

The importance of keeping your business' team as simple and swift as possible is crucial to keeping your company afloat. The more people on your payroll, the more you're inevitably spending; likewise, limiting long-term commitments to your budget will ultimately help you trim the fat.

For example, a marketing firm can rely on freelancers rather than full-timers for content creation and social media promotion. Similarly, the steps to opening a takeaway restaurant can be carried out by a small team rather than a massive staff of waiters and cooks.

Location is Everything

You've probably heard time and time again that “location is everything” in terms of your business; however, today that phrase means something a bit different.

You need to ask yourself a crucial question when starting your company: do I need a physical location?

If you're a web-based business that works mostly with remote clients, chances are there's no need for you to rent an office space. Likewise, many successful restaurants are born from food trucks and local catering services versus needlessly large locations.

Eliminating the need for a physical space is a huge money-saver in the long run. On the flip side, you may expand to the point where you need an actual office, but that doesn't mean you should start with one.

Go Beyond Traditional Advertising

On a similar note, advertising via social sites and content marketing is the way to go for 90% of businesses out there. Unless you're providing local services, traditional advertising such as radio and TV ads have gone the way of the dinosaur, especially given the price point. While there's a time and place for paid ads, is more than enough for many companies today.

Let Your Customers Advertise For You

Similarly, some of your strongest advertising can potentially come from others versus your own lips. Many businesses today live and die by online reviews: by having a positive presence online via social media and other review sites, your business reaps advertising benefits without lifting a finger.

Do what you can to and testimonials accordingly: social proof is arguably the most powerful form of marketing there is.

Grow At Your Own Pace

Finally, there is no “right” or “wrong” way to reinvest back into your business. Once you've become profitable, make sure to put some money away for emergencies and hold off on immediately hiring more staff or expanding. The more cautious you are, the more you ensure your business' survival for the long-term.

As a business owner, you should never lose sight of your budget. Keep your budget as tight as possible whilst still encouraging growth: you'll thank yourself down the line when you've amassed plenty of hungry customers and a nest egg.

Author:.

Carmelo is a marketing writer and blogger helping small and medium size businesses craft winning content strategies. She's always scouting the web for new social media strategies and is slightly addicted to apps. When not tapping the keyboard, you are likely to find her in the park playing with her uncontrollably friendly Irish setter or trying out new vegan recipes.

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