Taking the "wrong" shortcuts when starting a new business.
Updated: Oct 12, 2019
New businesses typically lack cash and founders will take "short cuts" with spending, ostensibly in the interest of the business. After all, more cash means surviving longer, doesn't it ? Yes, watching your spending early is critical, but be careful as shortcuts can backfire, or create irreversible problems to your business later down the road. Here are some examples of short cuts that are likely "NOT" such a good idea.
Not incorporating your business in the beginning could save some time and money initially, however will this affect the image or reputation of your business? Larger client prospects may not want to engage with a client that does not look legitimate. Similarly, not getting the proper business license or not being "compliant" with safety issues might be tempting early on if they seem not immediately necessary.
Writing your own contracts without consulting a lawyer? Yes, you'll save a few hundred dollars, but what if you get sued because the contract did not protect you from liability.
Not spending enough on sales materials and advertising can be a big problem as sales is the lifeblood of any business. Spend wisely and consider the return on investment but if you neglect this it could hurt you.
Not hiring a full time Office Manager or Sales Manager. Doing it all yourself is a great way to keep costs low, but it may mean your business does not get off the ground - ever. Watch out for early burnout.
Cheap website? Your company looks well, ...cheap. Not paying taxes on time? Needless to say this one never works out well.
Think longer term. "I'll do that later", may never happen, and your "future" businesses’ health may suffer, or you may have a large unlucky event that makes you wish you had done things the right way from the very beginning.
Want a business hack to all of this ? Hint: ... there are some shortcuts new businesses CAN take that will save you money early on and not hurt your business. For more advice, support, and information on ways we can help, please contact us. - Curtis Mackenzie - MD New Frame KK www.newframe.jp