Making money is the aim of the game. Therefore, you may be an entrepreneur who is looking to grow and expand his or her empire? Thought so because businessmen and women are in vogue in 2017. Anyway, making money isn’t simple when you don’t have a great idea!
Unfortunately, being an entrepreneur is more than just a title. Successful people do some things right and others wrong. However, the best understand their mistakes and seek to rectify their errors. Now, it sounds simple enough, yet a large percentage of “entrepreneurs” doesn’t follow this rule and it costs them money.
Because wastage is a sure-fire way to reduce your wealth, it’s something you want to avoid. The good news is you can by taking a look at the following. Here are the six most frequent ways entrepreneurs squander their cash.
#1: Custom Logos & Designs
One thing to understand before continuing is the importance of a logo. Consumers relate symbols to the biggest corporations in the world, such as Nike or McDonald’s. Savvy entrepreneurs, then, should use psychology to increase brand awareness and visibility. The problem comes when businessmen and women overspend. Nowadays, there is no reason to hire a designer who costs $50 an hour. With Project Gallery and Microsoft Word, you can develop your own. All you have to do is check out the templates which come with the software. Should the idea take off, you may want to rethink the design process. Until then, don’t spend money just to look the part.
#2: Office Space
Question: how important is office space? Answer: not as essential as people believe. Firstly, a work environment should be a positive place which encourages creativity. However, there is no need for a view of the central business district. A workplace ethos comes from the policies which a boss develops for the sake of the employees. For example, he or she may allow workers to manage their own workload. Secondly, business offices, in general, are not necessary for a modern company. As an entrepreneur, there is a need to cut costs to a bare minimum to survive. By working from home, it negates the need to pay hundreds of dollars in rent per month. Again, once the idea gains traction, then office space is a must. But, for now, don’t be afraid to work from a living room or coffee shop.
#3: Company Car
Using the term “company car” is a little misleading when the firm only employs one person. However, some people think it’s a wise move for cost-cutting purposes. For instance, if the company owns the car, the asset should be included on a tax return. The thing is that the price of a vehicle is far greater than any tax contributions you’re likely to save. As a result, it’s a pointless venture which only makes you poorer, not richer. Usually, the car you already own is enough to get you from A to B and shouldn’t impact your reputation. As long as it isn’t an old banger, no one will make any negative judgments. Plus, the car is also liable for tax cuts. Driving to a meeting requires gas, which is deductible from a tax return.
#4: Slick Website
Without a digital presence, there is no way to be successful in 2017. The number of people who shop online and read digital content is unbelievable. In a few years, the percentage of internet-based sales will exceed 50% according to studies. So, investing in a site with all the trimmings seems like a wise move. However, the site isn’t going to make money for quite a while because it takes months to increase traffic. Therefore, there is no point in spending a fortune on a website which doesn’t increase the ROI. Also, like the logo, creating a site is a simple process with the help of WordPress. Better yet, it’s free as long as you stick to the standard subscription with the non-customized themes. The key is ensuring it looks the part and is easy to navigate. All the other features, barring social media icons, aren’t as important as they seem.
#5: Employee Benefits
Hopefully, the idea will take off and you’ll need workers to take it to the next level. Of course, employing people means adhering to the rules and regulations set by the government. From paying minimum wage to affording vacation time, there are many bases to cover. Still, entrepreneurs who are new to the idea tend to go way over the top. The reasons are fear and naivety. Because you don’t know the industry standard, you provide more to cover your back. Just understanding the rules, however, will save a fortune in the long-term. Sick pay entitlement is a classic area to consider as ill employees cost a fortune in wages. The trick is to read up on as many regulations as possible and get to grips with the small details. Alternatively, you can fork out for a lawyer and accountant combo to be sure.
Just watch the TV program House of Lies to learn about consultants. Not to generalize, but the majority of them will take your watch and tell you the time. The ones that don’t come up with ideas any forward thinking businessman or woman could in their sleep. It isn’t rare to feel inadequate as an idea moves into new territory. Even entrepreneurs, the most confident and cock-sure people on the planet feel nervous. Therefore, it’s easy to see why people bring in consultants for a “professional” feel. All they do is cost money and come up with methods which are outdated or lazy. It’s difficult but an entrepreneur needs to have the coverage of their convictions. Does it feel right? Are you sure it will work? Good, then pull the trigger and follow through to the very end.
Speculating to accumulate is a motto which entrepreneurs live by in this day and age. However, it may cost you money if you don’t analyze which areas are necessary and which are needless.