Reduce your start-up costs 71
major purchases, you can update to better equipment quickly
and cheaply when the money rolls in, or change quickly if your
market is not where you thought it was.
Resist the temptation of what the SAS call ‘Shiny Kit
Syndrome’. You get so seduced by a piece of beautiful machin-
ery (Satan, take that iPad away from
me) that your life will not be com-
plete unless you can clutch it in your
hot, sweaty, little hands.
Your rule of thumb is not ‘Does it gives me the warm fuzzies?’
but ‘Is it absolutely essential I own it?’
Everything is negotiable. Always ask for a discount when you
buy things, for paying in cash or paying early. The worst they
can say is no. See Step 11 for more information on negotiating
Get a deposit
This has to be one of the easiest forms of finance, and yet one
people consistently overlook.
Get your clients to pay a deposit for the service, or to pay early.
is it absolutely essential
I own it?
I was asked for advice by a woman starting a business that involved getting
people over their fear of flying. Her proposed solution was to build a life-
sized flight simulator. Holy moly – that’s about £1 million! Surely there’s a
more creative way to start this without the investment?