Entrepreneurs who have a great business idea and have started a company need to keep a keen watch over where they spend their money. This includes variable costs (e.g., sales commission, raw materials, and packaging) and fixed costs (property rental, company car instalments, etc.). Some of these decisions are easy to make while others require you to do your research and make comparisons. For example, the decision to rent or purchase a business property is usually an obvious one for a start-up.
Initially, you need to have the cash flow to keep the company up and running and start making profits before looking at big investments like commercial property.
The early years of a business often require trade-offs between something that would really help you and not being able to take on more fixed costs. Cash flow should not be put at risk as the young business is still in a very vulnerable area of its growth and an unexpected expense could land you in hot water. Here are some startup cost cutting tips to help you to minimize your business expenditure.
Dispatches From The Front 