4 budget breaking mistakes you can make at launch
Are you thinking about starting a company? If so it’s important to be aware that 90% of new businesses fail within the first year on the market. Indeed, only the strongest will survive. So what causes companies to come crashing down so early? Well, it’s often due to issues with costs and finances. Let’s take a look at some of the crucial financial mistakes that you need to avoid.
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Failing to hire an accountant
Many business owners assume that hiring an accountant will just be another cost to add to their budget. However, this is a critical mistake and the reality is that an accountant will always save you more money than they cost in the long term. Accountants can check your spending and help you reduce wastage in key areas. If you can’t afford this type of solution in your business model, consider outsourcing to gain a quality solution at a budget-friendly price.
Forgetting to test
Testing is critical for every business regardless of the industry or sector that you choose. With testing, you can immediately eliminate wastage from your business model and ensure that everything is running efficiently. For instance, if you use services available from sites such as Intelligent DS you will be able to test your data servers and guarantee they are not costing you more than they should. Testing is also going to help significantly reduce high levels of risk that can often be present on the first day that your business opens its doors.
Hiring cheap workers
As the old saying goes ‘pay peanuts get monkeys’. Your hiring practices are not an area where you should be aiming to cut corners with the cost. Ultimately you will end up with individuals who are not suited for the positions they fill. Either they will leave or you will be forced to fire them in both cases this is going to increase the employee churn. Churn is a serious killer for companies and can ultimately end up costing you thousands every year that you won’t have in your budget. You need to get the right people in key positions from day one. The best way to do this is to trust a recruitment agency to handle the hiring practices for you. You can learn more about churn on various business websites.
Overspending in the worst areas
As mentioned, areas like hires are where you should spend more to save more. However, there are aspects of your company where you need to bring the cost down as low as possible. For instance, if you are choosing a supplier it is important to get quotes from numerous companies and ensure you find one that matches your chosen budget. Of course, quality is also going to be a top consideration, and getting both right is definitely a little like a balancing act.
We hope this helps you understand the ways in which your business can end up in financial trouble from day one. If you take our advice you can protect your company and ensure that your business has a high level of longevity.
