Your finances may be tight during your first year in business as you probably won’t start making a profit straight away. You may not even be able to pay yourself a salary until the end of the year. However, some things are too important to ignore or put off until profits are soaring. Here are the most important things to spend money on during your first year in business.
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Running Costs
Making sure you have enough money to keep the business afloat for the first year is the most important part of your business plan. You will need to source raw materials and pay for them before you can make any money. You may also need to give your clients time to settle their invoices so you may not see much money at all during the first twelve months. Making sure that you can afford to pay rent, bills, and any staff you need during the first year is going to be imperative to the success of your business.
Advertising
If you want potential clients to know that you are open for business, you will need to advertise it. Use a web design agency such as Webheads to make your online presence felt. They have a lot of experience in marketing techniques and will make sure that your company website gets to the top of Google listings and creates revenue for you as soon as you start. This is not somewhere you want to skimp if you want to make a profit as soon as possible.
Taxes
You will need to put money aside to pay for your tax bill as soon as you make any. Speak to a qualified accountant to see how much you need to save. Although your first tax bill might not need to be paid for some time, making sure that you have the money set aside for when it does means that your business won’t be put at risk.
Insurance
Making sure that you are adequately insured if the worst happens may sound boring, but you will live to regret it if you don’t take care of this issue. There can be a lot of things that could go wrong such as a flood or fire in your stock room, theft, or a disgruntled customer wanting to take you to court. Cover yourself for all eventualities to make sure you do not come unstuck if you need to make a claim.
Savings
Set some money aside for a rainy day. Whether you need it to pay an unexpected bill or get offered a great chance to expand your enterprise, there will always be a reason why you are glad that you had some money set aside to cover the cost.
There are places where you can cut costs during your first year of trading, but these five things aren’t among them. Spend money in these areas during your first 12 months and you will be glad you did.