As an entrepreneur it is important to ensure you are getting the most value out of your resources. Typically this means spending only on necessities. However, what one may think is a waste of capital is often what is needed to survive. While some are expensive, they are highly worthwhile.
To ensure you are making well informed decisions based on facts, you will need to spend money data analytics. This means buying the software and hiring someone to translate the data if you are unable to. This won’t be cheap, but you will be able to get the necessary information to make smart decisions.
Financial and Legal Advisors
Chances are that your start-up isn’t in the legal or financial industries and that your core expertise doesn’t lie in those arenas. That means having to pay for financial and legal advisors to make sure all your books are in order and that you’re not forgetting any tax laws. These advisors will likely be tax lawyers or accountants, depending on who you have on staff already.
Even if you’re in those industries, you should still hire advisors. This will let you focus your efforts on actually running the start-up instead of worrying about paperwork or whether your taxes are filed correctly. This is worth your money because it won’t matter how successful you are if you don’t have a competent patent lawyer protecting your money, or if your taxes aren’t filed properly and you end up having to paying fines.
Customer Service Representatives
Entrepreneurs and their employees are expected to wear many hats. Your responsibilities will inevitably involve some form of customer service. The problem is that you’re not trained for it, and neither are your employees. Dealing with angry customers, for example, requires someone with the right mindset and the right training. Deal with them properly and they’ll likely stay your customers. Deal with them in the wrong manner and you’ll have someone telling people your company is not worth the time and money.
Spend money on customer service representatives. Make sure that your clients’ concerns are answered quickly and efficiently. This will improve customer satisfaction, which will result in customer loyalty and return business. If you really can’t afford it, at the very least you should make sure that your staff gets the proper training to handle customer service responsibilities.
While you may have a great idea, this doesn’t necessarily mean people will want to buy it. Therefore you may spend money developing a product that people don’t need or want. This is where market research comes in. While it is often very expensive and time consuming, it is also highly important to conduct. It tells you and potential investors whether your products are marketable and viable. Therefore you can determine whether you have something special or if you need to rethink your idea.
Everyone’s got a little bit of technology in their lives, but only people who’re trained can actually make sure that they’re up and running. Hire technical support employees to make sure that most, if not all, of your in-house tech needs are answered. You could learn to fix things yourself, but that’s not the best use of your time. The best use of your time involves your expertise as it relates to your product and your employees, not making sure that the router is plugged properly.
Make sure that the tech in your office is running smoothly. Broken routers and computers will cost you time, which can cost you the start-up if it happens during a product demonstration.
You’ll need to be stingy as an entrepreneur, especially during the beginning. That’s good – you can’t afford luxuries while you’re not making a profit. Just don’t be too cheap to spend on things that’ll improve you company’s performance. Make sure you have all the personnel you need and your company will grow. Go too cheap and you’ll doom the start-up.