1. Make sure your business model operates with an upfront payment model.
Nothing can cripple cashflow when carrying and paying excessesive 'stock' . Fortunately on-line business allows your customers to pay upfront before you even send them the product
2. Forget the office! This may sound strange, during the early days of running a business most people work from home, not only does this make the daily 'commute' rather short, it also means you won't have to pay out fixed overhead costs to rent or buy a place elsewhere.
Remember these overheads have to come right out of your profits, so unless you absolutely have to 'move out' in order to grow ... stay home based
3. Lease or borrow instead of buy. Once you're making profit, with healthy cash-flow to match you can buy what you like, when you like, in the early days make it easy for yourself.
Before purchasing brand new desking, colour laser printer, camcorder, or any number of 'things' consider what alternatives are available to you at less, or no cost. Your local printers may well be your best bet for printing.
4. Keep your stocks to an absolute minimum. Even large companies are reluctant to keep large stocks do yourself a favour and take a similar approach.
As long as you have enough stock to fulfil your immediate order needs don't hang on to any more .
Not only will excesses of partially prepared stock clutter up your working area, unless managed properly it can create confusion and potentially set back hours of your valuable time sorting out what is 'good to go' and what isn't. Of course once your business really starts to thrive you can start to scale things up ... but at least your working practices will be built on simple organisation rather than one of disorganisation and chaos!
5. Act as if the money is your own... IT IS! Just because you're buying something 'for the business' doesn't make it any less of a purchase, or cost any less ... so don't become number blind to the price tags!
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