Regardless of whether you are forming an eBay shop or a multi national empire, your company is much more likely to be a success, if you keep to a budget ,according to business consultant Matthew Thornton.
“Many people ask me what is my number one tip in business and I tell them to start on a shoestring. Never give up your nine to five job to develop your business idea. Don’t be tempted to get office space you don’t need. Don’t engage in an untargeted, intangible advertising campaign. One of your main objectives when starting your company should be to try and make everything as cheap as possible, funding your company’s growth with the revenue you generate. “
“This concept that you need to speculate to accumulate, has no place in recessionary Britain. By definition, a recent company formation is something that has not been tested. It does not have the brand recognition, loyal customer following or any tried and tested promotional strategy. What it does have ,however, is carte blanche to go in any direction.”
If an entrepreneur chooses to start their company on a shoestring, they have more freedom to be innovative and maximize their company’s potential. Alternatively, if a recently formed company is burdened with huge start up costs, it needs to start paying back its debt pretty quickly.”
While your idea of being the CEO of your own company may involve impressive offices and an expense account. , in reality it is important that your company starts generating revenue as soon as possible. The only way it will do that is if it is cost effective from the point of company formation.