When you’re just starting a business, money can be extremely tight. Overspend at the start and you could find that you don’t have enough cash to achieve your goals. Don’t spend enough and your business may be unable to get off the ground.
Being frugal with your spending in the right areas is essential. Here we’ll take a look at how you can make savings, without sacrificing your business:
1. Second hand office furniture.
Of course you want to make your working environment for you (and any staff) comfortable, but this doesn’t meant that you need to spend a fortune.
2. Run your business from home.
While you may want to rent office space in the future, when starting up your business it can often save you a lot of money to work from home.
If your home is far from the ideal work environment, there are lots of offices that you could rent a desk in, for very little money.
3. Consider outsourcing rather than hiring.
Hiring staff can be costly. Using experienced freelancers to help you with projects or even manage, for example, your social media and blog, can help to keep costs down, compared to hiring a full-time member of staff.
Plus, you won’t need that extra seat in the office, as they’ll be working remotely. What’s more, if things go quiet, you won’t be committed to paying them a monthly wage. You can just ‘hire’ them again, as and when you need them.
4. Social media is your friend.
Social media is a free way to advertise your business to potential customers from all over the world. Twenty years ago, you would have had to pay for advertising to reach those people. Now, they are at your fingertips.
Companies like Cashlady are a great example of businesses that engage well with customers through social media and blogs.
5. Virtual meetings can save on travel costs.
Often, there’s no need to pay for trains or flights. Most of the time, it’s possible to conduct meetings remotely via, for example, FaceTime or Skype.
6. Do you really need all of those meetings?
Take a look at how many hours per week you and your staff spend in meetings. Are they all really necessary or could this time be better spent elsewhere?
7. Save money on your energy bills.
Whether you’re working from home or from your office, savings can be made on your energy bills by investing in LED lighting.
8. Offer your goods/services to another business in return for theirs.
Cashflow can often be tight when you’re starting out, so why not offer your goods/services to another company, in return for what you need from them?
9. Where are you spending your money?
Review where money is being spent and see if there are any savings that could be made. Your stationary, for example, could cost less from another supplier.
10. Do you really need it?
Finally, before making a purchase, consider if your business would really benefit from it. If you want to be frugal, it’s best to use what you have until you really need to go out and buy something else.