If you’ve always wanted to start a business and hesitate to take the plunge because of insufficient cash flow, you can consider starting on a small scale with minimal funds. While it is true that to scale any business as it grows, you’ll potentially need money, investors or partners, and a solid plan on how to grow using business funding. But, if you’re starting out, you can grow your business on as small a scale as you like. Let’s look at how to set up a small office when you are low on cash and/or funding.
1) Allocate six months’ savings for your expenses
Tapping into your own savings account is probably not ideal if you’re starting a business. However, it’s common among entrepreneurs. When preparing a basic business plan, you should assess how much you’ll spend and how much sales you’re expecting. After that, be realistic about when you’re likely to make a profit. A thumb rule is that it will take a minimum of six months before you see any money flowing in from your business. So, the first goal is to save at least six months’ worth of living and business expenses before starting. An excellent place to start is creating a business startup budget.
2) Prepare a list of everything you’ll need to run your small business
Before looking for any office space, you should make a comprehensive list of everything you’ll need in the new office. It could be chairs, desks, computer hardware, and peripherals. You’ll also need to ensure you know what’s involved in setting up an internet connection. Some everyday items that most small businesses need are:
– Chairs: Evaluate different types of chairs and try to go for ergonomic chairs.
– Desks: Consider what will be the best office desk that will suit your office layout and work needs.
– Computer and peripherals: Determine the number of computers you’ll need and what kind they should be. You can consider laptop rentals in the initial days of your business to keep your capital costs down.
– Software: Decide whether you need licenses for any business software.
– Internet connection: Try to find an internet provider that gives you good quality, high speed, and reliability.
3) Do you need an office or can you work from your home?
Running your office from your home will save you money. However, there are a few questions to consider before deciding to do so. Do you have a large family who may not like tiptoeing around you during your work hours? Will you need to meet clients face to face? What will be the tax implications? Will you need any specific B2B tools to work remotely?
4) Lease or purchase your office space?
If working from home doesn’t work for you, your family, or your business, you should consider leasing or purchasing dedicated office space where you can focus on your business. While leasing or purchasing office space has pros and cons, leasing is probably the way to go initially if you’re starting up and have low funds.
5) Buy only the furniture you need
Whether you work from home or in an office space, you’ll need appropriate furniture. While you can certainly buy furniture, keep in mind that some types of furniture may be expensive to buy. On the other hand, renting furniture may turn out to be economical for you. If you’ve decided to purchase your furniture, you should look for good deals on second-hand furniture to help keep your costs down.
Discover a diverse range of comfortable and functional furniture combining quality and affordability on https://interiorbeat.com/. Then make your wishlist to be more confident what you really need. It’s a good way to avoid needless expenses when your budget is limited.
6) Consider your storage needs
If your business operates exclusively online, you may not need too much actual physical storage space. However, you should have a dedicated storage cabinet to store office supplies like files, copy paper, pens, product brochures, and other essentials. On the other hand, if your business is likely to generate considerable paperwork, it’s a good idea to get a filing cabinet to help you stay organized. To save money, instead of buying a filing cabinet, you can always consider renting one.
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