Starting a business for the first time is always a process of trial and error. There are several elements that we, as founders, think are the most important things to get right. Hence, we believe we must hire industry professionals to produce the very best results we can afford to buy.
After four years of spending in various areas and evaluating the outcome, I would like to share with fellow founders that there are at least four expenses you can avoid when starting your business.
Related: Kick-Start Your Small Business With These Cost-Effective Strategies
1. Website
Spending five figures on a web development agency is one of my biggest regrets about startup costs. In 2019, when I was thinking about launching Emilia George, it was still the peak of the DTC brand era. So, a sophisticated website was paramount. I consulted with many web agencies ranked top on Clutch, including a top-tier agency that charges at least $100,000 for an ecommerce website. Ultimately, I chose an agency that charged me $16,000 for our inaugural website.
After that initial expense, I paid various Shopify experts on specific website functions throughout the first two years. What is the status of our current popular online store? Our team has been taking turns to update them. Each team member will work one to two hours monthly to ensure our products and aesthetics are updated.
When you first start with a limited amount of products and services, it is unlikely that customized fonts and Add-to-Cart functions will have overwhelming returns on your investment on your website. It is possible to save a considerable amount of money before you launch by creating a website design with a solid user experience and a streamlined updating process in-house (or, most likely, yourself at the beginning).
2. Copywriting
Back in 2019-2020, ChatGPT was less prevalent than today. The need to work with copywriters or branding agencies was more imminent as you tried to make that once-in-a-lifetime impression on the world. It was helpful for me to get started with introducing the brand. The following year, I quickly realized how many times I changed the brand copy as the company continued to grow and pivot.
There is no perfect depiction of your company when you first start out. It is an ever-evolving process until you find your niche and a sustainable business model. You do not need to spend money on copywriting agencies or experts, which could cost upwards of five figures as you start. ChatGPT does a great job in copywriting if you provide the software with as much detailed information as possible about your brand and products. Many startups have already adopted it, and it is a cost-effective tool.
Related: 7 Creative Ways for Your Small Business to Save Money
3. Graphic design
It took me a while to feel the cost of Adobe’s Creative Cloud was justified. Initially, I thought it was not worth it as I wasn’t fluent in Adobe functions. I relied on graphic designers and photographers to help make many marketing collaterals and for photo editing. They were invaluable since I didn’t have the skills or the mindset to learn them. After a while, like any founder who monitors QuickBooks and P/L diligently, this expense seemed expendable for our revenue level.
I decided to install Adobe Creative Cloud and watch online tutorials on removing backgrounds since many marketplaces require products on white backgrounds. I eventually picked up Illustrator and InDesign to create marketing collaterals. Granted, there is much room for improvement regarding design elements and sophistication, but DIY does the job and is genuinely conducive to our profit margin.
Over the past couple of years, Canva has completely changed the game’s name regarding graphic design. It is a platform for all, period. Nobody on my team had graphic design experience or training, but Canva is all we use now. If anything, new founders could save more money by subscribing to Canva than those more expensive options.
4. Social media management
Nobody can argue the importance of social media for consumer brands. From Facebook, Instagram and Pinterest to TikTok, many have made solid careers out of their inclination and obsession with social media. For startups, it is a perfect kind of internship for credit to offer to enrolled students. It should not be on your payroll when you start. Social media management is different from the strategy of ads. Two very difficult skill sets are often considered one expense category for new founders.
I have witnessed several consumer or lifestyle brands in our space galvanizing tens- and hundreds of thousands of followers at an encouraging rate, as well as very high customer engagement numbers. Content is what consumers seek out when using social media. However, whether content is convertible to sales is not necessarily dependent on social media management. If you have a budget for having an online marketing presence, it is much better to avoid spending it on social media management roles but more on ad management opportunities.
Related: 8 Unconventional Ways to Cut Costs in Your Business
It is that time of year when we all reflect and refocus. These four expense areas to avoid may not be agreed on by every founder, but they are lessons drawn from my own experience building Emilia George with minimal external investment. After all, it is never too late to ask, “Do I want to go fast, or do I want to go far?” Cost optimization is key.
Read the full article here
