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Business startup resources
Written by Greg Soffe   

Finding ResourcesBeginning a business startup can be difficult especially when you are on a tight budget. Planning your monthly, weekly or even daily spend can be difficult when your costs fluctuate. This is why it is essential for business startup entrepreneurs to plan their spending. One of the ways you can do this is to fix as many of your business costs as you can. This article will look into a few tools and resources that you can use as a startup business to not only fix your costs but at times, can eliminate them altogether.

When starting up a business you will need to acquire the tools of doing your business, be these desks, computers, phones, vehicles, actual tools, it doesn't matter what they are you should consider alternatives to buying chattels when you are in the first unstable months of your business. This is because while you are finding your market you need to maintain your versatility and flexibility, you need your new business be agile so you can adjust your processes and procedures. You don't want to buy anything that will still be costing you when you need to rapidly change the way your business works. Possible alternatives to purchasing business resources can include, renting, leasing, borrowing & getting free resources. These methods to acquire inexpensive resources can also help your business cut costs during the recession.

Renting/Leasing

Renting and leasing are essentiality the same thing, a fixed periodic cost in return for the use of an asset. The difference between rent and lease is that when leasing you have to pay the agreed amount for a specified period of time. That means that if you lease an asset, should you choose to not use it any more at any time during the lease period, you still have to pay every payment until the lease period is over. With renting you can terminate the payments when you return the asset to the owner or the owner can terminate the rent by collecting the asset.
There are advantages to both, leasing good allows you to secure an asset for a fixed term, as your lease guarantees you use of the asset for the specified lease period. Also in a lot of places the lease payments are tax deductable because they are an expense or a cost of doing business. In lease situations with machinery the owner of the asset is liable for any wear and tear on the asset provided that wear and tear comes from the normal everyday use for which the asset was intended. that means for example if your leased business car breaks down the place you leased it off is responsible for fixing it and providing you a replacement while it is being fixed. Great if it is essential that you stay on the road to maintain you business.
Renting an asset allows you the agility to cancel the agreement should you no longer require the asset. But you are liable for repairs and there is often no tax advantage to be had.
Both agreements will allow you the advantage of knowing the monthly fixed cost of maintaining the asset in your business.

Borrowing

You should really consider borrowing the minor things you need to start your business, especially if you are just out to prove you business concept. Have a quick run through with friends and family before you start your business, you may be surprised to find that there are a lot of people in your life that are very keen to help you succeed in your new venture.
Items that family and friend have that are quite often over looked by a fledgling entrepreneur can include desks, chairs, computers, printers. Pot plants are a good resource to have if you are in a customer facing or retail environment, and a resource that grandma usually has plenty of just laying around looking for a home.



 

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