Any Small Business Planner will tell you that starting a new business will involve spending money. Sometimes, a lot of it.
So now you’re planning to spend money. You’re planning all the material goods you may need – from a pencil to your premises – and everything in between. This is the time to be conservative and smart!
Startup expenses for a business can add up quickly and almost always exceed projections. This is the time to be conservative. Wildly extravagant expenditures on everything from office leases to the latest and most expensive IT toys are a potential disaster. Minimise your costs and risk by making a complex, cold analysis of what you need and being ruthless when crossing things off your list. You can always upgrade when your new business has started to make a profit.
Read More: Starting Your Business this Year should focus on Creating Time.
A small business planner will tell you your location should be a priority. Signing a lease and paying rent is a financial burden – but a part of doing business. Signing a lease and paying rent in the wrong location is an economic disaster – and can signal the end of doing business. There are specific criteria to consider when you are selecting a location. Ask yourself:
- What exactly does your business require from its location?
- Are you convenient for your customers? Can they get to you easily? It’s no good being located in a cheap-to-rent but inaccessible place.
- Parking is a vital consideration.
How about employees? Can they get there quickly? - Have you room for inventory storage?
- Does the location comply with zoning, safety or health laws, etc.?
- How’s the security – for your business, customers and employees?
- What about future growth? Will the present location still be appropriate?
List any negative aspects of your location that can affect sales. Try to find solutions. If you cannot resolve the negative aspects, reconsider.
So you found your Small Business Planner to help you with your Business Plan. Perhaps, now, you need Working Capital? Apply for Working Capital here.
More Insights on Small Business Plan Formats: Successful Business Planning for Startups: 9 Must-Do Steps
A small business planner should advise you to resist the glamour of high-profile buildings and locations! In most cases, renting less expensive premises in another area is better than moving up to more up-market premises when your business makes a nice profit. However, the opposite – getting too cheap a place – can also cause a problem. You might save money but find it doesn’t suit your business image or appeal to customers. If you are renting, ensure you have a written contract lease agreement. It must specify all the details: length of the lease, rent increases, the due date for rent, conditions, etc. It’s well worth running it by a lawyer before you sign.
Also, think about the length of your lease. The cost of moving (both financially and concerning losing customers) may be enormous if you relocate at the end of a short lease.
Do you need to know more about a Small Business Plan Format and see a Small Business Plan Sample? Look at some of our case studies for clients who chose JTB Consulting as their small business planner.
In Case You Missed It – Here is some more advice from JTB, a Small Business Planner:
