That's the number one question on most entrepreneur's mind...
And it's understandable given the current state of the global financial landscape.
Banks are going bust, inflation is burning a hole in our wallets, and interest rates are being hiked at the most aggressive rate in years.
So, what comes next?
Well, the honest answer is...
WE DON'T KNOW AS WELL 🤷♀️
There's no definitive answer.
While nobody knows for sure, it is best to be prepared. In this article, we offer seven strategies for small businesses to reduce expenses during their inaugural year.
Creating a financial plan forces you to take inventory of where you are right now, where you want to be, and how you want to get there. It also helps you make better decisions in a pinch, and forces you to remember the big picture when you’re feeling bogged down by the day-to-day of entrepreneurship.
The bigger your professional network, the better. Every person you meet could be a potential adviser, customer, or partner. Accurate financial projections can be the difference between finishing the quarter strong and not having enough funds to remain open next month.
Here are some popular free tools and apps you want to check out:
- Hatchfulhelps you create professional-looking logos and social media assets, without any design experience.
- Burst allows you to browse and download free, high-resolution photos for your website or commercial use.
- Xeroand FreshBooks both offer accounting, invoicing, and payroll services built for entrepreneurs, with 30-day free trials and plans starting as low as $9 per month.
"Number one lesson: don't rush product research. Evaluate your market. Follow successful competitors for a few months and see how they do things. Then invest in the shiny things."
– Marcia Hacker, founder of Sauipe Swim
Based on the research "cost of starting a business," businesses that spent more on marketing in their first year earned less revenue. As a rule of thumb, you’ll want to spend between 5% and 8% of your total budget on marketing in your first year.
Normally, small business owners have to negotiate rates themselves with each carrier individually. Shopify recognizes that shipping is an extremely challenging aspect of running a small e-commerce business, so they’ve given customers a leg up with Shopify Shipping.
When you ship with Shopify Shipping, you get access to pre-negotiated rates with carriers in the US, Canada, and Australia and you can manage your entire shipping process in one place.
Tax laws and regulations are complex and can change often, so staying on top of your tax obligations is critical if you want to avoid penalties or hefty fines. More than that, understanding tax laws means you can take advantage of some real cost savings.
Running a small business can be challenging, especially during the first year when expenses are high and revenue may be slow to come in. However, with careful planning and smart decision-making, you can keep costs down and set yourself up for success.
At House of Cart, we offer a range of services to help small businesses thrive, from e-commerce solutions to digital marketing. Visit our website today to see how we can support your business growth.