If you’re starting your own business, it’s probably fair to assume that you want it to be a success.
Most (all?) business owners want to avoid running out of cash or their business failing within the first few years.
You’re probably fired up, raring to go and willing to do whatever it takes to make things work.
It’s natural to be counting the pennies when you first start and be looking to get everything done as cheaply as possible. But be careful, cut costs in the wrong areas and you could miss out on potential growth, or create problems later on down the line
The good news is, it’s possible to stand on the shoulders of giants and learn the lessons from entrepreneurs that have come before you.
We’ve broken down the 5 top areas you shouldn’t cut costs too deeply in when you’re first starting out.
Let’s get stuck in.
1. Invest in a Top Notch Website
It’s no secret that first impressions matter. Whether you’re meeting someone for the first time or applying for a job, you only have one chance to make a good impression.
The same is true of businesses. When somebody is looking for a product or service, the first thing they’ll do is Google it or navigate directly to your site if they want to have a look at who you are.
And what they find when they land on your website will be their first impression of your business.
You might think that starting a new business is expensive enough without shelling out for a fancy website but trust us – it’s worth it.
A great website will not only make your business look more professional, it will also help you to win customers and make sales.
Your Shop Window
A website is the shop window for your new business.
Your website is the first port of call for most people who are interested in your product or service. It’s important to remember that people will make judgements about your business based on what they see on your website. If your website looks amateurish or outdated, potential customers are likely to go elsewhere.
Investing in a great website shows that you’re serious about your business and that you’re willing to invest in its success. It sends a message that you’re professional and that you care about your customers’ experience.
Know Where to Cut Costs
There are places to cut costs when starting up a business – the website isn’t one of them.
When you’re starting a new business, there are bound to be costs that you hadn’t anticipated. But don’t scrimp on your website – it’s one of the most important investments you can make.
A great website will pay for itself many times over by helping you to win customers and make sales. It’s worth taking the time (and spending the money) to get it right from the start.
Copy That, Over!
Anyone can write copy for a website but understanding how to write copy that converts into enquiries really matters.
One of the most important things to consider when building a new website is the copy – the words on the page. Sure, anyone can string a few sentences together, but writing copy that actually sells is an art form.
Copywriting is all about understanding what makes your target customer tick and then using those insights to craft persuasive messages that convert into enquiries and sales. If you’re not confident in your ability to write great copy, it’s worth hiring a professional copywriter to do it for you.
Options for Website Building Tools
There are plenty of options out there when it comes to choosing a platform for building your new business website. Some platforms are better suited to certain types of businesses than others, so it’s worth doing some research before making a decision. Here are some popular options:
WordPress: WordPress is one of the most popular site-building platforms in the world and Powers around 30% of all websites around the world. It’s suitable for businesses of all sizes and budgets and there are plenty of themes and plugins available to help you tailor WordPress to your specific needs.
Wix: Wix is another popular site-building platform with millions of users worldwide. It’s especially well suited to small businesses as it offers an easy-to-use drag-and-drop interface with plenty of templates and designs to choose from.
Squarespace: Squarespace is another excellent option for small businesses as it offers beautiful templates and an easy-to-use interface. One downside of Squarespace is that it can be more expensive than some other platforms, but this is usually offset by the fact that everything needed to build and maintain a high-quality site is included in the price (unlike WordPress which has many free themes and plugins but also has paid options).
As a small business owner in the UK, it’s essential that you have a great website if you want to succeed. Your website is often the first point of contact between you and potential customers, so it’s important to make sure that yours makes a good impression.
2. Accountancy
When you are starting a new business, it is tempting to find the cheapest accountant available.
However, beware of the old expression “buy cheap, pay twice”. You get what you pay for in life and if someone is offering to do your accountants for £50 a month, there’s probably a catch somewhere.
It might be limited service, or never dealing with the same person, or they’ll end up late filing your paperwork. But ask yourself about the quality of service you could provide to your own customers at an incredibly low price.
Experts Matter in Accountancy
It is important to find an expert accountant who can help your business grow.
You’ll want someone who can save you money in tax and suggest growth strategies. It’s also important that you can get fast answers to queries. You’ll be amazed how important this is when you are planning decisions.
A good accountant will help you become a more experienced business owner. It’s worth paying the right money for this.
Why You Should Avoid Cheap Accountants
There are a few reasons why you should avoid cheap accountants.
Firstly, they may not be qualified or experienced enough to give you the best advice.
They may not be up to date with the latest changes in tax law. This could end up costing you more money in the long run.
Cheap accountants may not be able to provide the same level of service as more expensive ones. This means that you could end up waiting longer for answers to your queries or not getting the level of support you need.
How to Find the Right Accountant
You might be able to source a recommendation for a trusted accountant from other business owners. Or you can access a free consultation with a pre-vetted accountant through Go Impartial.
Once you have narrowed down your list, you can contact each accountant to discuss your specific needs and get quotes for their services.
Accountants - Final Thoughts
In conclusion, it is important to find the right accountant when starting a new business. Cheap accountants may not be qualified or experienced enough to give you the best advice. They may also not be up to date with the latest changes in tax law which could end up costing you more money in the long run.
3. Business Insurance
No one really likes paying out for an insurance policy. But worse than this is paying for insurance only to discover that it doesn’t cover you in the event you need to make a claim.
We know of one company that made and sold software. They paid for legal coverage as part of their policy, so when they became involved in a legal dispute with a customer, they felt confident they’d have their costs covered.
Image how angered they were to discover a clause hidden deep in the terms that stated that the policy did not cover them for software related disputes! Crazy, but it shows that the details matter.
When you are starting a new business in the UK, it is important to pick the right insurance policy.
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Get Insurance Right Early On
It’s important to pick the right insurance policy when you are starting a new business in the UK.
There are many factors to consider when choosing a policy, such as what type of business you have, how much you need to insure your business for, and what type of coverage you need.
We’ll discuss some of the things you need to keep in mind when choosing a business insurance policy in the UK.
What Type of Business Insurance Do You Need in the UK?
The first thing you need to consider when choosing a business insurance policy is what type of coverage you need.
There are many different types of business insurance policies available, so it’s important to choose one that covers your specific risks. Some common types of coverage include property damage, liability, product liability, and workers’ compensation.
How Much Should You Insure Your Business For?
The next thing to consider is how much coverage you need. This will depend on the size and scope of your business. You’ll want to make sure you have enough coverage to protect your assets and income, but not so much that you’re overpaying for unnecessary coverage.
All-inclusive Policy or a Policy That Covers Only Specific Risks?
Another thing to consider is whether you want an all-inclusive policy or one that covers only specific risks. All-inclusive policies will typically cost more, but they will provide comprehensive coverage for your business. On the other hand, policies that cover only specific risks may be less expensive, but they will not provide as much protection for your business.
How to Choose the Right Insurance Company for Your Needs?
There are many factors to consider when choosing an insurance company for your business needs. Some things you may want to look for include financial stability, customer service, claims history, and discounts for businesses like yours.
What To Do if You Have a Claim?
If you have a claim, the first thing you should do is contact your insurance company and notify them of the situation. They will then send an adjuster to assess the damage and determine how much your claim is worth. Once your claim is approved, the insurance company will pay out the benefits specified in your policy.
So check how the company you’re planning on dealing with handles claims!
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4. Get Employment Done Properly
Growing a new business is an exciting time. You have a great product or service, and now you need to find the right people to help you take your business to the next level.
But with so many things to think about, it’s easy to overlook the importance of getting your employment decisions right.
Engaging the services of an experienced HR company can ensure that you are compliant with the law and avoid making costly mistakes.
But even if you decide to go it alone, there are some key things you need to keep in mind when choosing your employees.
The Different Types of Employment Contracts Available
The main types of employment contract are fixed term and permanent. A fixed term contract is where an employee agrees to work for a set period of time, after which their contract will expire.
A permanent contract is open-ended and will continue until either the employee or employer decides to terminate it.
You could also be consider employing people on a temporary basis, or zero hours contracts. It’s best to take advice about what is the best approach for you.
How to Choose the Right Employee
When choosing an employee, it’s important to consider both their skills and their personality.
Make sure they have the necessary skills for the job by conducting a thorough interview process. And take some time to get to know them as a person – do they fit in with your planned company culture? Do they share your values? It’s worth investing the time (and money) to check these things early.
What to Do When You've Made Your Choice
Once you’ve chosen your employee, it’s important to get off on the right foot by setting up a probationary period.
This is a short period of time (usually 3 or 6 months) during which both the employer and employee can assess whether the arrangement is working out. If there are any problems, they can be ironed out during this time. Why does this incur a cost that you shouldn’t cut? Because you’ll need the employment contracts set up correctly to make sure you’re covered.
The probationary period is also a good time to introduce your new employee to your company’s induction process. Yes, it may take an investment to create this, but you’ll be building a team that is well suited for the long run.
Pay and Conditions - Getting Them Right from the Start
Finally, make sure you get your new employee’s pay and conditions right from the start.
This means ensuring that they are paid at least the minimum wage (if not more), and that their working hours comply with the law. You should also make sure that they have any necessary equipment (such as a laptop or mobile phone) from day one.
Employment - Final Thoughts
Getting your employment decisions right when you are growing a new business is essential if you want to avoid costly mistakes further down the line.
By taking some time to choose the right employees, setting up a probationary period and investing in an induction process, you can give yourself the best possible chance of success. And don’t forget – when it comes to pay and conditions, make sure you comply with the law from day one!
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5. Terms and Conditions
If you’re going to have customers + suppliers (which you will), then at some point you’re either going to be issuing or signing terms and conditions.
It’s tempting to write these yourself or grab a template online and adapt it for your business. And, in truth, you might get away with this for a while – but if you find yourself in a dispute situation, then the details of those terms are going to become very important.
So even if you cut corners & costs on this area at the very start, keep in mind it’s worth coming back to it when you can afford to do so and having them properly drafted and checked by a trained solicitor.
T's & C's are Vital
Having clear terms and conditions is vital for any business, big or small.
It’s important to have a contract in place that sets out the expectations of both parties involved in the agreement. Well formed terms and conditions can help prevent misunderstandings and disputes between you and your customers or suppliers.
There are many benefits to having clear terms and conditions, such as:
- Helps you to avoid disagreements or confusion about what was agreed upon
- Gives you a written record of what was agreed upon
- Sets out the expectations of both parties involved
- Protects your business interests
- Can be used as evidence in court if there is a dispute
Spend The Time & Money on Contracts When You Can
It’s important to spend time and money on getting your terms and conditions right from the start.
Having mistakes or ambiguous terms in your contract can cause serious problems down the line.
If you’re not sure where to start, there are many templates and resources available online that can help you create clear and concise terms and conditions for your business – but remember, these will get you part of the way, but by their nature they wont be tailored to your business needs.
How to Make Sure Your Terms and Conditions are Clear
Once you’ve decided to put together a contract, there are a few things you should keep in mind to make sure that your terms and conditions are clear.
Use simple language: Avoid using legal jargon or technical terms that might not be understood by everyone involved. Keep it straightforward so that there is no room for interpretation.
Be specific: Include all the details about what is being agreed upon, such as price, delivery date, product specifications, etc. The more specific you can be, the better. This will help prevent any misunderstandings further down the line.
Include an expiration date: Make sure to include an expiration date for your contract so that it doesn’t become invalid after a certain period of time. This will ensure that both parties are aware of when the agreement comes to an end.
If There is a Dispute Over Your Terms and Conditions
If there is ever a dispute over your terms and conditions, the first step is always to try and resolve it directly with the other party involved. If you’re unable to come to an agreement, then you can consider taking legal action. However, this should always be a last resort as it can be costly and time-consuming.
Making Changes to Your Terms and Conditions
There may come a time when you need to make changes to your terms and conditions, such as when you’re adding a new product or service. If this happens, it’s important to communicate these changes clearly to avoid any confusion or disruption. The best way to do this is by sending out an updated copy of the contract with highlighted changes so that everyone involved is on the same page.
Contracts - Analysis
It’s important to take the time to create a well-written contract that sets out the expectations of both parties involved.
Doing so can help prevent misunderstandings and disputes down the road. If there ever is a problem with your terms and conditions, always try to resolve it directly with the other party first before considering taking legal action.
Making changes to your contract should be done carefully by highlighting all the changes so that everyone involved is aware of them.
Limited Resources Mean Tough Choices
We get it. The chances are that unless you’ve raised finance to start your business, you’ll be starting with a limited budget and maybe introducing cash yourself into your company.
This means it’s natural to focus on doing things as cheaply as possible in as many areas as you can.
We’d say, your website is the first factor here. Arguably, you might need insurance until you’re about to sign your first client and you’ll attract clients faster with a credible online presence.
The employment costs will kick in when you grow your team and you can probably be trading for a few months before you need to engage an accountant, particularly if you’re doing your own bookkeeping.
Terms and conditions can probably be handled through templates at first, just remember to come back to these as you grow!