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4 Ways To Lose Money (Fast) In Business

When you’re starting a business, remember you are in it to make a profit. Stick to your startup budget and be smart about purchases.


Merideth-Bisiker
Photo: Merideth Bisiker, Certified Money Coach; Source: Courtesy Photo

As an online entrepreneur, you can avoid pricey office leases and the cost of furniture and physical office equipment. However, you’ll still run into inevitable business expenses.

You may find yourself spending a boatload of cash on business services and online tools during launch. The key is to know which tools to purchase now and those you should put off until you start earning consistent income.

In order to make the best use of limited startup funds, avoid these four purchasing mistakes:

 

  • Mistake #1: Pay too much for a website.

    You’re an online entrepreneur and without question you need a high quality website. The question is: “Should you do it yourself (DIY) or outsource website design and development?”

    If your budget is tight, don’t spring for a premium website that’ll take you into the four figure range or more! There are several website builders which are relatively easy to use, even if you’re not tech savvy.

    Go simple and get your website out there, at first. You can take simple steps to improve your websites’ design. When you’re designing a website, your top priority is to make sure the site is optimized for conversions—because that’s its job.

  • Mistake #2: Learn on limited funds.

    Do you think that next online course is going to be the key to your business’ success? Remain mindful of your available time and your bank account balance before you purchase an online course.

    Only spend time on paid e-courses if you are sure you can schedule time to work on it. Ask around to make sure the course has proven results for others in your field. There are plenty of good online courses designed to further your business, but buyer beware. Not all courses are built the same.

    Ask yourself three questions when you’re looking for an e-course:

    a) Are the promised results something I need right now?
    b) Will I have access to live support?
    c) Will the takeaways from this course help me increase profits?

    If you feel overwhelmed by your endless task list and you’re totally confused by the talk of sales funnels, e-courses can only add to the noisy distractions. Instead, invest in a business coach to benefit from a personalized strategy; which may equal a similar cost structure when compared to several e-courses. Capitalize on your coach’s knowledge and expertise in your industry and take advantage of her know-how so that you can launch your business in record time.

    Every business coach offers specific expertise, so do your research and interview several coaches to find the right one. Take proven steps to find your dream coach.

  • Mistake #3: Purchase unnecessary, complex tech tools.

    It’s easy to get caught up in tech buzz. One minute the pros are lauding Infusionsoft’s efficiency and the next you stumble upon a debate over the best paid webinar service when Google Hangouts is free and at the ready.

    There are a ton of tools that can definitely streamline time management, but the cost and their learning curves will suck profits and time. Keep things simple during your initial launch. Avoid getting lost in a vortex of technological fog, and keep it simple and seek out ways to achieve more in less time.

  • Mistake #4: Create a product before you validate it.

    Launching a new product or service without verifying its attractiveness to your target market is grounds for negligence in the business world. Entrepreneurs waste too many hours designing a product they are convinced their ideal customer needs, only to find out that they don’t want it.

    Product market fit is an essential business ideology. If you fail to validate while you’re eager to launch you will jump ahead with a big idea only to hear the inevitable crickets.

    Solid market research is worth its weight in gold. This includes researching your ideal clients’ pain points and desired outcomes, as well as extracting their language for your sales copy. There is a proven method to interview your ideal clients, and gather research to determine if there’s a market for your business idea.

When you’re starting a business, remember you are in it to make a profit. Stick to your startup budget and be smart about purchases. Dig in and build your own website with an affordable and attractive website template, ignore the hype around e-courses and tech trends, and hire a coach to help you navigate your launch.

 

This article has been edited and condensed.

Merideth Bisiker is a Certified Money Coach (CMC) who helps confused coaches overcome their money blocks so they can make the money they want to make from their business. Merideth’s clients have endured low income for too long, and they are ready to change their money mindset. They usually feel guilty about charging their clients, they feel like a fraud, or the thought of making more money scares them to death. Merideth coaches her clients to feel good about making money for their valuable services. Connect with @meridethbisiker on Twitter.

 

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