If I Had £1,000 to Start a Business, Here’s Where I’d Spend It

If I Had £1,000 to Start a Business, Here’s Where I’d Spend It

When starting a business, you have to make sure that the money you’re spending on, is what you really need to get you moving. Say if you have £1,000 that you can spend to start a business, you don’t want to spend money on things that are not cost efficient. Start by understanding your business concept and who your target customers are.

In this episode Annette will give her recommendations on where to allocate your £1,000 and also, what things you should not spend money on just yet.

  • Annette’s recommendation on where to spend your  £1,000 when starting a business from scratch.
  • What not to spend on and the reasons for not spending on those, yet?  

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When you start a business, it can feel like there's so many things that we need in order to get started. But actually, in reality, there are not that many things that we need to spend on when a business first begins from most businesses. Yes, it's different if you are in a business that requires machinery or inventory, but for many businesses, and particularly online businesses, or coaches and consultants, you don't need to spend a ton of money in the beginning.

Welcome to the Financial and  Lifestyle Freedom Podcast with me, Annette Ferguson. I am a CEO of Annette and Co, I am a chartered accountant and certified Profit First professional, as well as a small business growth strategist. And we ultimately help small business owners take home more money for them and their businesses to enjoy. One part of that is of course, controlling spending

So in today's episode I'm speaking about if I had 1000 pounds to start a business, here's where I'd spend it. Let's dive in.

Annette’s recommendation on where to spend your  £1,000 when starting a business from scratch.

So I want to cover off today where I would spend 1000 pounds to start a business. And I'm going to also speak about some places where I wouldn't spend the money. So first off, if I was starting a business today from scratch, and I didn't already have it, I'd need a laptop or some kind of IT hardware.

Most businesses, it's tricky to run just from your phone or an iPad. So you will usually need some kind of tech in order to start and so the first 450 pounds, you'll notice that's almost half my budget would go on a laptop, IT hardware.

So if you have a laptop that you can already use that might be things like a mouse and a keyboard separately, might be things like a riser for your laptop to raise it up so that you can work more comfortably. But that is where I would dedicate almost half of my budget so that I can work efficiently and effectively.

And then next, I would say set aside about 200 pounds for a domain name, website, email hosting, that should get you somewhere close to the first year paid if you set that aside. 

Now, of course, you don't need to have a website from day one, but it can be good to secure the domain name and start using a branded email address straightaway so that nobody else snaps up that domain name from you. And the next tranche of money I would dedicate would be 150 pounds on software, things like Canva, for graphics and Active Campaign to start an email list.

There are going to be different pieces of software you might require depending on the type of business that you set up. But for many businesses, as I say, particularly online businesses, coaches, consultants, trainers, this is going to be a good start for you and cover the first few months of your software requirements.

The next 100 pounds I would allocate to books on business and entrepreneurship.  I would also spend a huge amount of time watching free YouTube content and learning how to do everything from building a website to reaching my audience. You do not need to spend a ton on courses when you start out in business.  

Here is so much free information online, that definitely should be the first place to start. And whilst you're there, one of the books that I would highly recommend that you read is profit first by Mike Michalowicz, it is all about cash management. So if you want to get a copy of the PDF of that book, you can head to annetteandco.co.uk/pfbook, we'll also put the link to that in the show notes, as well.

That's another place I would recommend to allocate some of your funds is books, as well as time for consuming and implementing free content that you can get on YouTube or on people's blogs. And the final 100 pounds that is left, that is going to be for various miscellaneous costs, things like business insurance, things like your accounting software.  

They're going to be little things like that, that come up that you will need to spend the money on, but making sure that you have a pot for that. So that is how I would allocate a 1000 pounds to start a business, if I was starting again from scratch today. 

What not to spend on, yet?

But note there are some things that I have said not spent money on, branding and a logo is one of those things. Now there's a reason for this, because I actually did spend money on branding and a logo when I just started out my business. But the problem was, that I really at that point in hindsight, was not clear on who exactly my ideal audience were, what I was really actually selling.

Yes, I'm an accountant, but what I was truly selling to my clients, because it won't just be accounting services when you're an accountant, hint hint, but what they really wanted and what my messaging needed to be. And I just was not really fully aware of that in the beginning, and most people aren't, which is why branding and a logo straight off are not necessarily the best use of your funds, but you can still have an online presence without a logo and without paying a lot of money for those things.

And the next thing that I would not start chucking money at is paid advertising. Again, at the beginning, most people are not clear on their offer, they're not very clear on who they're serving and they're not really sure what messages work with their audience.

So throwing a ton of money at paid advertising spend is not again, necessarily the best idea in the world. Neither by the way is, if you get people cold calling you up, trying to persuade you to advertise in their publication, or on yelp.com, or anything like that. You need to do your own research into your own advertising methods rather than just going with whoever might happen to cold call you.

It's also really important with advertising, to start building an audience and work out what is going to work organically first, before throwing a load of money at it. So those are areas that I would not spend money on straight off. I would wait and understand my business fully before I actually invest in any of those things. 

Final Thoughts

So I hope this has been helpful for those of you who are starting up a business who are doing so on a budget and want to ensure that their money is being directed in the best place for them and their business.

Thank you so much for tuning in today to the financial and lifestyle Freedom podcast. If you enjoyed this episode, please do make sure that you subscribe in whichever podcast player you happen to be listening in.

Please do also leave us a review.  Reviews are the way that other incredible business owners find us and are able to tune in and benefit so it does really help if you can leave us a review as well. Thank you so much for tuning in today. Until next time. 

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About the Author

Owner of Annette & Co. - Chartered Accountants & Certified Profit First Professionals. Helping online service-based entrepreneurs find clarity in their numbers, increase wealth and have more money in their pockets.

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