Making the leap to start your own business is cause for celebration, and those who take the plunge should be applauded. Most people will not be so bold.
However, there are a number of pitfalls awaiting people who go out on their own, and one of the most common of these is:
Going for the cheapest…
This relates to a lot of things in business. We all want value for money. Nobody wants to be ripped off or pay over the odds for something. This shouldn’t mean, however, that we simply choose a supplier or service based solely on price.
For instance, when people start their own business, one of the first things they’ll need is a business card. We’ve all seen those adverts on TV, where you can get X number of cards for just a few pounds. It’s a really great offer, and seems incredibly cheap.
They’re cheap for a reason though, and your business card should represent you and how you do business. Handing over a flimsy business card, adorned with a bit of clip art, is going to tell the person you’re trying to impress that you’re not a serious businessperson and you don’t offer a quality service.
It will tell them that you go for the cheapest you can find.
This also applies to other factors in business, such as accountants. While you can save money by going for the cheapest accountant, or even save on accountancy fees altogether by doing it yourself, the money you could lose in the long run could well offset any savings made by being frugal. The wrong person doing your accounts could cost you thousands.
Take financial advice. Use a recommended accountant. Pay for a quality business card. Have a professional logo designed (and don’t use clip art). Pay for a proper website. All of these things are important to succeed in business.
Yes, you can cut costs, but doing so in the wrong areas could be a false economy.