As a startup owner, there are many things that you have to consider. Are you going to hire a staff or outsource? How are you going to market to your customers? Which productivity tools are you going to use for your business? While these are all expected decisions every entrepreneur must make, there are times when all the planning in the world isn’t enough. Markets change, supplies go out of business, and your customers have migrated to the latest new gadget. In these situations, budgeting for the unexpected becomes increasingly important. Below are a few areas you should definitely plan for.
Hiring Employees
Paying employees wages is a planned expense that all business owners are aware of. However, when it comes to paying for recruiting firms, time loss from interviewing or training, and the high cost of benefits, most owners are not prepared. You may even have to pay for background searches and criminal checks depending on your type of business. If your level of employee turnover is high, this is an expense you will see repeatedly.
You can reduce employee turnover by advertising truthfully and spending time picking the right candidate. If you have to conduct a second or third interview to help you decide between candidates, by all means, do it. This can be cheaper than taking on the wrong employees and have them quit after a short period of time. You want employees that you’re happy to invest in. Don’t let the repeated cost of hiring new employees catch you off guard.
Marketing and Promotion
When you set up a new business, it’s easy to think that just because you’re selling good products or services that the customers will come flowing in. However, this kind of naivety is what can cause first-time entrepreneurs to fail. It’s important to be aware of the fierce competition and how important it is to market and promote your business in the right way. If you’re not experienced in this, one thing you can do is outsource to a professional marketing agency. They will deal with everything from social media marketing to a blogger outreach service, advertising and much more. Because marketing is quite technical and requires a lot of know-how, it’s important that it’s done correctly. Failure to get your business out there to customers could literally lead to the failure of your business. Make sure you bear marketing costs in mind when you’re working out your budget.
Software and Technology
If you want to stay up to date in business, you absolutely have to keep with the times. One way you can do this is by utilizing technology and software, which can help to automate tasks. Manual methods are slow and you risk human error. This can cost you extra money in the long run. However, paying for software and technology, in the beginning, can be cost-effective. Don’t see this as somewhere to make savings. Without the right technology and programs in place, your business will never thrive and do as well as it could.
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