As an entrepreneur running a tight-ship budget and constantly searching for cost-effective options, ‘spend more to make more’ is a cliché you’ll gladly ignore. However, each business day comes with extra costs that you simply can’t ignore, especially when they seem pivotal to the growth of your business.
Here are 3 extra startup costs that you may not have included in your ‘well-detailed’ business plan:
Ahh ahh! You didn’t see this one coming! Eating out regularly is way more expensive than you imagined. Don’t believe me? Do the math yourself using your meal receipts!
Do you know that a restaurant meal costs about 300% more than a home-cooked meal?
Granted, there will be times when you’ll treat an investor or client to lunch/dinner but when you aren’t, try cooking your own meal. What’s more, don’t opt for an up-end restaurant when a local one can get the job done.
Keep in mind that however low or ‘reasonable’ a loan option may seem, failing to service it as at when due earns you more debt. Market changes, the value of currencies fall, prices of raw materials increase… to avoid paying twice the amount you loaned, try renegotiating the terms and conditions of the loan with your financial institution.
Choosing to attend seminars, conferences, exhibitions, and workshops is an amazing idea. However, the cost of attending each of these events may be too high a price to pay, especially when it will take a toll on your cash flow.
To avoid this, opt for local events, try attending ‘others’ virtually and digitally, and only travel when it is absolutely necessary!
Running a startup is highly demanding and extra costs will keep cropping up. Go into each business day armed with the most cost-effective options for each extra cost!
Have a profitable business day!
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You’d be glad you did!