Keeping costs low is important for any business, no matter how large or small. However, for startup companies, the need to keep costs down is even greater, especially if your business is not yet turning over a profit. Increasing costs spiraling out of control have become the death of many a small business, and if like most new business owners you want to prevent your startup from succumbing to this fate, you’ll need to work hard on keeping your costs to a minimum.
Thankfully, there are a number of great ways to do this. We’ve put together some great tips for keeping your costs as low as possible:
Energy is an essential cost for any business, even if you’re working from home. If your business is based in an office or shop building, you will need to consider the costs of heating and cooling the building, as well as lighting it and working any other electrical appliances. Energy costs can take up a large chunk of your monthly bills, which is why it’s important to have some good energy saving strategies in place from the minute you begin. Simple things such as making sure that windows and doors are properly sealed so that hot and cold air does not escape, closing doors behind you and switching lights off in rooms that aren’t in use can make a massive difference. Check out the best business energy rates here.
If you want to expand your business, you’re likely going to have to also expand your staff base. However, depending on the nature of your business, this doesn’t always mean that you’ll need to employ staff on an hourly or salaried basis. There are a lot of freelancers working in different industries, who you can pay simply on a job by job basis in order to save money. Hiring telecommute and work from home staff can also save you a lot when it comes to employee costs, as you won’t usually need to provide them with any equipment to do the job, and it saves on energy costs.
Funding and Investment.
Many startup companies take on some kind of funding in order to give them the financial backing that they need to get ahead. However, if you are looking for a business loan or other kind of funding to get your business off the ground, you’ll need to take into serious consideration the monthly repayment costs. If possible, try to find an investor or lender who will allow you to begin making repayments after your business has started turning over a profit – this way, you’ll have less costs to worry about when you’re trying to establish your business.
You should also be careful when considering buying equipment, paying marketing costs, and setting up a website for your business. A bit of shopping around is usually all that it takes to make sure that you’re getting the best price, and the time spent doing so will definitely pay off in the long run.