Setting up an office entails substantial costs when you’re starting a business. Apart from the lease, business owners will have to purchase office equipment and fixtures, and pay for utilities, among other expenses.
Apart from large purchases and periodic financial obligations, launching a business also requires time and careful planning. While waiting for your business to gain a foothold in the market, you can pinch pennies by reducing operational and overhead costs while developing your brand.
1. Purchase Second-hand Equipment.
In setting up an office, most business owners choose to get brand new office tools and pieces of equipment. If you want to save on costs, however, it’s better to look for low-priced office items that can still do the job. Some larger enterprises regularly switch to new and more advanced pieces of equipment, and sell these at ultra-low prices.
Make sure to have these sanitized along with the entire office and help enhance your staff’s performance. Discover how a clean workplace can increase productivity. Amid the pandemic, it pays to have peace of mind by regularly cleaning the office premises and being extra careful in handling objects in the office.
2. Ask Your Landlord For Lower Rates.
This is something that most businesses often don’t think about, but it’s worth trying. Try negotiating with the building owner for lower lease rates. Most landlords prefer to keep rather than lose current tenants, leaving the property idle for a certain period. Keep this in mind while talking with the building owner, but don’t overdo it as you might lose your prime office location instead.
3. Use Open-Source Licensing Software.
Getting business software is essential in keeping your operations flawless. Having a fully integrated system for most of your administrative works, like accounting and payroll, as well as other equally important tasks, such as project management and office communication, is primordial.
This essential business tool, however, costs anywhere from a few hundred to a few thousand. Before committing to such a considerable expense, consider cheaper alternatives, like open-source software or free trial offers.
4. Pay Your Bills On Time.
When you’re trying to save costs, paying for financial obligations may take a backseat as you focus on what you think are more justifiable expenses. Delayed payments, however, are subject to penalty charges, apart from business loan interest rates. If you can’t pay in time, your amount dues will balloon on the next payment cycle.
At the same time, be active in closing your accounts receivable so you’ll have enough cash inflow to fund your daily operations. Make payments easier on your customers to increase your chances of getting paid on time.
5. Partner With Other Businesses.
As a startup, you may want to explore partnerships with other related businesses to increase brand awareness and improve your reputation. Associating with more established ventures will make your customers see your business as something they can trust.
You can be as creative as you can in drawing up a partnership for another business. For instance, if you’re an accounting service provider, offer training sessions on making a budget efficiently in exchange for free office tools or interior design services. Embarking on this arrangement requires you to know the value of the products or services that you can offer, so you know exactly how much and what to request from your partner.
6. Consider Outsourcing.
A substantial portion of operational costs is allocated to human resources. A full-time worker is entitled to benefits, like earning within or more than state-mandated minimum wage limits, paid time-offs, insurance, and office space and pieces of equipment.
Review your operations and decide which tasks you can pass on to third parties. The most common outsourced jobs are accounting, payroll, digital marketing, human resources, and information technology.
7. Hire Less-Experienced Staff.
Employees with more experience often cost more. If you want to reduce your payroll expenses, look for fresh graduates who’ve shown exemplary academic performance or those reputable organizations have recommended as interns.
In hiring recent graduates, businesses can offer entry-level salaries while having tech-savvy and flexible workers, who are always willing to develop their skills and learn the ropes.
8. Go Green.
When people have become more conscious of environmental damage, it’s good to have a business that takes care of the planet. There are many things that you can do to save the earth and reduce office expenses, such as:
- Turning off electrical devices when not in use to reduce power bills
- Having water leaks repaired as soon as possible to minimize water consumption
- Going paperless to save trees and office supplies expenses
- Recycling paper and other materials that can be repurposed
Setting up a business office entails a considerable chunk of business expenses — which can be challenging as the venture has yet to carve its place in the market. While waiting to attract and keep customers, organizations must reduce their costs as much as possible without compromising growth opportunities.