Hi to start I used to work summers with my Sister and Brother in laws small business.

I have learned a lot from pertaining to sales, marketing, inventory control, and most importantly cost management.

My brother in law actually pulled me aside one day to talk about this as I thought it would be nice to have stuff that was not really needed.

Anyways this is more about small business survival and profits. The main rule is do not spend business money unless you have to and also unless it makes you money. Now looking back on this from a long time ago I think this is the only reason his business survived as they where selling Italian movies which did not generate huge amounts of income. With his being business cheap he actually survives for a very long time and it was more like they had there own job for decades. The result was that they had better pay checks that a engineer. Without the cheep approach I do not think they would have been able to do this.

Now another aspect of this is for the first few years a new business does not really make money but with the business cheap approach your business and personal income will be enhanced as apposed to going deep into funding your business.

Another aspect of this is also what you buy. For example if you use say a folder that costs $0.50 and can find one for $0.10 this will make a bit of a difference but on a overall scale it will make a huge difference.

I hope this helps some of you as I know it works.

 

 

 

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Thanks for the quick info. I am planning on starting my own business soon, before im out of highschool, and i've been reading around, and trying to get an idea of how to start, and sort of how to run it. I'm a bit unsure of everything so far, but I learned a bit from this topic. Thanks.

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The idea that technobot gave is really awesome but it depends on what type of business you are planning to run. Two of my pals started their business and though they tried to limit their expenses, they didn't do it on the expense of the quality of the stuff they got. I mean face it. You get a folder for 0.5 $ and the other one for 0.1$. There has to be some difference in the quality. In the long run you may have to buy the folder again and again which accumulated the cost rises to the one of 0.5$ so why not buy one that a little costly but has more chance of being retained that the cheap ones. Well that was not the point I was trying to prove. What I was trying to tell was that for example you run a business where you need to engage with client in your office and lets face it if you try to limit your expense and try to get cheaper stuff on the expense of quality, the client will notice it and may not consider as they may think that the quality of service you may provide may be not up to par. Presnentation is all my friend. It is the initital investment that may boost your business. Even if you don't have a strong back but have a good presentation, you may render more client than others.
BUT if you are operating a business that doesn't involve interaction with the client at your premises then it doesn't really matter what you spend your money on and how you do it. It wont really have any effect on your business.
Thus my friends, the tip tehnobot provided is very good but in certain circumtases it doesn't apply.

 

 

 

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