Startups have been cautioned against investing in posh workplace decor at the expense of product development and marketing for business expansion.
Though some businesses need fancy offices as part of operational strategy, those are rare cases.
Economist, Dr Evans Nunoo, observes most start-ups in their first few years make little gains.
But due to societal expectations, some are forced to keep up appearances.
However, furnishing office spaces could cost more than the payment of office rent.
Mr. Nunoo suggests some businesses can thrive even in the absence of an established office.
“First of all, where did you get the money to start the business? Did you get it from loans? Then know that you cannot do any extravagant thing. We should not also underestimate the importance of physical products as one of the 5Ps in marketing.
“We should be careful not to spend much on those things. It can get to a time; the business might be hanging on loans,” he cautioned when he spoke to David Akuetteh on Luv in the Morning on Luv FM.
To uphold appropriate expenditure and cut down cost, startups have been advised to develop a proper financial plan for their businesses.
Dr Evans Nunoo advised that profits made in the early stages should be ploughed back into the business.
“First you should have clear finances for the business and personal finances. You should pay yourself. Any avenue for personal leakages must be blocked. Be reasonable with how you want things to be seen.
“Anything you want to buy, make sure there is a good reason why it must be bought. Make sure you have clear cut margins as to how much will go to you and your workers. The rest of the money must go back into the business,” he advised.
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