Many of us don’t like spending money, even if it is for the business. It can be especially hard to get excited about spending money when you are bootstrapping your business. However, every startup needs to spend money on a few things. You really do need to spend money to make money. Here are five things that you should consider spending on, even if you have to stretch to make it happen:
You really do need to spend money to make money. Here are five things that you should consider spending on, even if you have to stretch to make it happen:
1. Technology
Start with what you need to make things happen. The technology your startup needs to spend money on should help advance your business. This can mean paying for good web services, as well as making sure you have the right cell and data coverage.
Your technology needs can even include making sure you have the right payments and invoicing systems. With the right systems in place, you can save money on technological solutions. Pay attention to what will help you advance your business, from a payment platform that accepts multiple payment types to a tablet with a data plan that allows you to run your business from anywhere.
2. Good Design
You don’t want to turn potential customers off by clunky design. Graphic design should be clean and attractive. Your products should be easy to use. Your website should be easy to navigate. From your logo and business cards to your website and social media accounts, your startup needs to spend money on design that works.
When you look professional, others are more willing to spend their money with you.
3. Insurance
Don’t skimp on your business insurance policies. Pay attention to what you need from a business insurance policy. Will you need liability insurance on your company’s headquarters? Are going to need errors and omissions insurance? You might need auto insurance for your fleet of company vehicles.
You want to be covered in the event something goes wrong. Insurance is the best way to cover your needs. Figure out what insurance you need, and pay for the coverage.
4. Professional Advice
Get some help with accounting if you aren’t sure how to do it properly. There are plenty of apps and low-cost accounting programs that can help you get started. You need to keep track of payroll, as well as get an idea of where you have waste. Professional accounting advice can help.
This is also true of legal advice. As a startup, you might think that now is not the time to pay for legal advice. However, it’s important to have a good lawyer on tap. Your legal advice can help you review contracts, as well as make sure you are complying with the law in your business.
Be willing to pay for professional advice and you will benefit in the long run.
5. Marketing
Finally, your startup needs to spend money on marketing. Don’t assume that you will get organic shares for your content. Instead, put together a marketing plan. Research where your audience is. You can use ads on social media, or even on more traditional media. The key is to know your audience or customers and create a plan to reach them.
When you are willing to spend some money for results, you are far more likely to succeed in the long run. Be realistic. Figure out where your startup should be spending, and then make a budget.
