Sunday, June 22, 2008

Tips in saving money for the startup entrepreneur

So you have just decided to open your own franchise business and you want everything to be just perfect come opening time so you spared no expense in ensuring it does. But did you know that most of the time, this sort of thinking is what makes a business fail during the start up process? Money, as we know is a limited resource and like any other limited resources, we must think and use it wisely. There are parts of the whole business process that we can save money on and some that we must not As a rule, it's important that you do not skimp on resources when you spend money on the customer service, convenience and accessibility aspect on your business. The location of your business is perhaps the most important ingredient whether your business succeeds or fail. Places with a steady supply of human traffic is ideal so malls should be on the top of every businessman's list. The downside to this is that securing a spot in a mall is quite expensive, especially on popular ones like SM where they also earn a certain percentage of your sales. It is by no means a guaranty that your business will not fail if you set up shop in malls as any location with lots of human traffic like LRT/MRT stations and places near schools is ideal. But when it comes to constant streams of human traffic that actually increases during holidays and summer breaks, nothing beats the mall.

With that said, you can save on everything else in the process of doing business. Take for example the delivery vans. While brand new one are really much better than second hand cars, there are reconditioned vehicles there that cost half of what a brand new one might set you back and are just as good. The same could also be said for equipments. If possible, buy used or reconditioned business related items if it can function just as well. When it comes to storing you inventory, you could renovate your house instead of renting a warehouse just to store it. It might be inconvenient to some to share your living space with various inventories, but you are saving quite a bit of money by doing so. You can always rent a warehouse when your business is already more established. Get some free advertising by getting yourself featured in a magazine or better yet, a TV show. It's a great way to advertise your business and you will be reaching a huge market eager to try out your product or service.

1 comment:

Anonymous said...

Hi. I have been reading your blog on franchising and was wondering if the franchise fee is subject to withholding tax?