Running a business costs money. There’s no way around it. As a new business owner, you have hundreds of challenges to overcome—but making strategic money moves can help alleviate many of them. Businesses that are just starting make the majority of their financial decisions solely based on affordability. What if we told you there was a better way? Luckily there is, and it all revolves around strategy. It is all about what brings the highest value, not necessarily what is the cheapest option. A dollar saved, and a dollar spent can (and should) be strategic.
Are you focusing on retaining your current workforce? Make decisions that help upgrade your employee benefits and better your company culture.
Not sure which aspects matter most? Now is the perfect time to sit down and determine your business goals and the decision that will help lead you there.
All in all, when it comes to new business finances, it is not how much you spend but how well you spend it. Ask yourself questions like-- do I spend the right amount to get the right talent to deliver on the right product.
Start fielding your costs in terms of your desired outcome. This shift in focus will help you reduce risk and increases your chances of success.
You will spend money getting your business on its feet. It is a necessary part of the art of business start-ups. Fortunately, there are a few ways you can reduce financial liability and get things rolling a lot more smoothly.
Here’s our list of the top financial mistake new business owners make and how you can solve them.
Financial Fail: Misappropriating Finances
Traditionally, new businesses tie up a lot of their money on upfront costs. Many of the most successful big companies of today, including Google and Amazon, opted out of this financial burden by using non-traditional office space in a garage. They then moved onto less-traditional spaces including coworking spaces. Here’s what drew them in:
- Shared offices help reduce financial burdens, especially in terms of capital costs.
- Coworking spaces increase your ability to compete by attracting a new workforce and helping your employees network with other link-minded professionals.
- Transform your office into a wholesome, vibrant place that employees want to work.
- Coworking spaces reflect how great your product is and how great your business is to your employees, investors, and prospective customers.
- No more onerous contract terms that you need a legal degree to understand.
- Shared offices offer flexible packages that grow with you. If you grow or decrease in Kiln than your contract expands and increases as your business does.
- Time is your most valuable currency, and if you are not focused on your business, you are losing money. Kiln gives you back your time by concentrating on day-to-day office operations so you can do what you do best—your business.
Financial Win: Coworking
Coworking spaces are the new-wave alternative that offers members the benefits they need without the high-cost financial liabilities of yesterday. By providing members with shorter-term contracts, the ‘pay-as-you-grow’ terms are no longer an unrealistic fantasy drawn up by disgruntled lease owners.
New business owners at Kiln have flexible contract terms that grow with you. Our month-to-month membership makes it easy for you to modify costs as your team develops.
Additionally, shared offices shoulders the burden of significant CAPEX costs including furniture, equipment, property costs, and other upfront finances— saving you valuable cash up-front that you can strategically spread out in other ways. This is often underestimated not only in terms of cost but also the time required to set everything up. Losing a week is costly. Luckily, Kiln specializes in “Plug & Play.” Simply, sign up, show up, and we will handle the rest.
1. Coworking offers the biggest bang for your buck.
If you have less than 30 people on your team, coworking spaces save you more than 60% of what you would spend on renting a traditional office. However, you gain more than you save using dynamic office space that’s full of networking and growth opportunities.
2. Forget your rainy day fund—shared offices offer controlled month-to-month fees.
If your video camera breaks in a traditional office, you are forced to break open your business savings account. However, at Kiln, we cater to your needs by covering all of office maintenance costs.
3. Creating a dynamic space that employees want to work at is costly.
Through Kiln you already have a built-in space that provides all the knicks-and-knacks needed for a productive, communal, and interactive work environment.
5. You get out of it what you put into it.
Price per foot isn’t the only thing you pay for in leased office space. You also have to properly staff the office, provide amenities, spend money on cleaning, utilities, meeting rooms and more. The list can seem endless.
Just take for example CAPEX costs—in which most startups end up spending an additional $15-25 per square foot on. In a shared space like Kiln, we take care of all of that for you. You simply walk in and plugin. Add in our world-class design and support and what more could you ask for?
Coworking Offers Affordability
At the end of the day, you should never wonder whether you should buy a new ping pong table or pay your employees. By focusing on strategic money moves, you can rest assured knowing that you are doing the most for your business. There might not be a way around spending money to get your business going, but you can decrease your risk by lining up your financial decisions with your goals. We have found that Kiln offers new business owners the financial freedom they need to give their business the best chance at success.
Are you looking to be a leader in a flexible office space? Our team would love to show you the Kiln difference and consult you on your business’s on-going needs. Contact us today to learn more.