In today’s economy, there are endless new startups popping up every single day. With the market becoming so saturated, it’s clear that you need to be doing something to differentiate yourself from the 90% of startups that fail.
As a startup owner or entrepreneur, it can be difficult to determine where to allocate your funds. If you’re struggling, look no further: here are the top things budding startups should spend money on.
Marketing is a crucial place for all businesses to be spending money. The average company spends 7.9% of revenue on marketing, but as a startup, that number should be significantly higher. Marketing can help you build brand awareness, attract new customers, and retain your current customer base.
With the rise of the internet, marketing is more important than ever. Having a presence online is a must—luckily, owned media channels are free, making this an extremely cost-effective method of marketing.
It’s also important to spend on market research. While market research can be costly, having primary research specific to your company niche is an invaluable resource to help you target and segment your customer base. To help offset the cost of market research, supplement it with secondary research that is readily available online.
2. Tools & Technology
Having the right equipment is a necessity for all businesses. Whether you work in online retailing or construction, there are tools specific to your industry that will definitely give you a competitive edge.
However, don’t be drawn in to buy things just because they’re new & shiny. Do your due diligence to ensure the tools and tech you are buying are worth the cost and will provide a good return on investment.
Insurance is an absolute must for all new businesses, especially startups. During this stage, you don’t have the resources to battle a major financial hardship on your own—having insurance will help prevent your company from going under if something major goes wrong. Consider getting health insurance, disaster insurance, and even a fidelity bond in case of employee theft.
There are so many things startups can choose to spend money on, but a big part of what sets the successful ones apart from the rest is their strategic money management skills.
If you’re a startup owner who wants your business to thrive, check out the infographic below to learn about all the things you should be spending money on:
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