No matter what industry, small businesses must make every penny count to get through those difficult first few years.
1. Looking bigger than you are
Many entrepreneurs are one-man-bands with many hats to wear. And while at the beginning it’s just not cost effective to hire a secretary, you might still need someone to answer the phone while you’re in a meeting – virtual assistants can do this remotely for a fraction of a full-time secretary’s cost. Web hosted call centres and auto dialler solutions make lead generation easier and more efficient, while call answering systems ensure potential customers/clients are dealt with professionally every time they call.
2. Make the most of free publicity
Social media, be it Facebook, Twitter or LinkedIn, is the most obvious source of free (or cheap) publicity; if you use them well, you already have access to plenty of contacts and customers. If you’re operating in a niche market or doing something you love, simply sharing what you’re doing on Facebook and Twitter can create some interesting leads.
But don’t forget about newspapers – especially the local or trade media. Send them press releases, and make sure you include pictures; follow up with phone calls or invitations to any events you are holding, and think about angles for interesting stories around what you are doing.
You can also extend your network by joining local business or industry specific trade organisations – not only can you get support and camaraderie from like-minded people, you can also often get yourself included in their online directories and even advertise for free on their websites.
3. Market research
Solid market research should be the foundation for anything you want to sell. While there is a risk that people don’t always know what they want, there’s a much bigger risk in going to market with something that just won’t sell.
You need to test the water with the people you think might buy – and get beyond your friends and family – so get on the phone, get out on the street and talk to them. Or, if you’re working online, look for some of the free software available – like SurveyMonkey – and think carefully to choose both the right questions and the right number of questions. Polls on Facebook are also useful.
If you keep their contact details on file, perhaps your market research group will become your first customers.
Once you’ve got all you can out of the direct data, you can go on to use web analytics to tell you more about how people use your website.
4. Office space
Apart from salaries, rent is one of the biggest overheads for any business – and one that you have to pay without fail every month.
But do you really need an office to yourself? A number of local councils and universities offer shared space for entrepreneurs – places where you can hot desk, hire meeting spaces and maybe even make some useful contacts. If that doesn’t appeal, can you work from home?
If you want to run a shop, test the market online before you get your own premises – there are lots of successful eBay businesses with virtual stores.
5. Don’t skimp on professionals
While there are many things you can do for yourself, and many services you can get for free, be aware that sometimes you will save time and money by getting professional advice from the outset.
Accountants can ensure you register yourself and your company in the right way, advise you on VAT and ensure you don’t get fined for missing key deadlines. A small amount of legal advice to get contracts right may avoid large fees later on down the line.
