Business mentors advise entrepreneurs to keep overhead low
Recently, USA Today hosted their second annual Small Business Challenge, which pairs fledgling entrepreneurs with mentors who offer insight and guidance into the many challenges faced by young companies in today's economy.
This year's mentors represented three fast-growing industries: Monster.com founder Jeff Taylor, Boston Beer Co. founder Jim Koch and Paula Deen, who has gone from a caterer to an owner of a soul-food empire, largely through the liberal use of butter.
The trio helped fledgling businesses in their respective markets, and offered a wide range of advice that covered topics from the importance of growing lines of credit to varying revenue streams. However, one piece of advice that all three stressed to their mentees was to "keep overhead low."
Jim Koch offered the example of when he was just starting his brewery operation, he forwent an expensive computer system purchase and elected to use low-cost paper invoices instead to save funds that could be reinvested into growth.
"Keeping costs down — as well as maintaining meticulous financial records — helps to have smoother, more manageable day-to-day operations. It also means a business will be prepared for any future opportunities," Koch told USA Today.
With advances in technology, organizations can find innovative alternatives to what used to be some of the largest expenses on the line budget. For example, the decision to ditch costly office leases for a virtual office solution can help young companies stay lean and reserve resources.
Especially for organizations in the Tampa area, where office space is ballooning in cost, working remotely can ensure that cash is available for unexpected business opportunities.
On Point Executive Center offers Tampa virtual office services at competitive rates, which are available on an "a la carte" basis in combination with our Tampa meeting rooms and business address services, along with many other exciting opportunities for small businesses to manage overhead.