MONDAYS FREE TIP FROM Stephen Fear

Welcome to this week’s Monday Tip for entrepreneurs!

Startups are an important function of business activity. It’s important to remember that all businesses were startups once!!

Famous names like Google, Apple, Marks & Spencer, John Lewis, Harrods, Bloomingdales & Hilton were once the brainchild of an entrepreneur just like you or me.So how do you start, and once started, how do you survive?

I started my first business aged 14 with an idea and then by using a public red telephone box as my office! Thankfully mobile connectivity means today’s entrepreneurs can work from almost anywhere.

KEEP YOUR FIXED OVERHEADS LOW! Yes that’s it! This week’s HUGE TIP! Probably the single most important thing you will ever learn in business is that KEEPING YOUR FIXED OVERHEADS LOW will enable you to spend more on essential growth enablers such as SALES & MARKETING. It also enables you to survive should times get tough!

So what constitutes FIXED OVERHEADS? Well in my opinion, where startups are concerned at least, these are ANY overhead that you cannot get out of within three months!

Things like LEASED CARS AND VANS. POSH OFFICES. HIRE PURCHASE AGREEMENTS ETC.

I’m not saying you don’t have ‘any’ FIXED OVERHEAD just that you avoid them where possible. In a utopian business plan you would avoid ALL FIXED COSTS but this isn’t really possible so just work on minimising them.

Watch out for tip 2 from the #PhoneboxMillionaire next Monday.

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