If you’ve just started a small business, then you’ll well know how tight cash can be in the early months. With start-up resources (including tools and materials, business insurance, and human labour) eating up your business loan, you may be questioning the viability of your enterprise in the long-term. But don’t despair prematurely: by instituting the following tips on how to spend less and save money, you’ll be on your way to start-up success.
It’s the cardinal rule when resourcing a small business: try to avoid buying anything at its fullprice. Whether it be office supplies or perhaps bigger manufacturing items, make it a rule to set an email and phone alert for whenever your suppliers are offering discounts or sales on your required products, so that you can buy in bulk for less.
Even the smallest of start-ups will rack up decent amenities bills (especially if your business involves manufacturing). It thus makes sense to do your research when it comes to electricity, internet and insurance providers. Aim to collect at least a few different quotes from each provider for comparative purposes, and see what kind of deals you can negotiate over the phone.
In terms of keeping your paperwork in check, digitise wherever possible. Outsource bookkeeping services to eliminate excess printing, and recycle your ink cartridges – you’ll be saving the environment and time!
Here’s another tip that does double-duty both for the environment and your business budget: save on power! Start by giving your label-maker a work out by printing off some simple instructions to remind your employees to turn off lights and computers after leaving for the day.
Though it may seem counterintuitive, a small business can indeed profit in an economic downfall – especially if that downfall is confined to the particular sector of rental property. Take advantage of rough times to see if you can renegotiate or lower your lease, and if you’re not confident with the specifics, get a lawyer in to help.
Revising salaries is a way to avoid entirely laying off employees when things get tough. As a rule, cut from the top, starting with the executive committee (including you) – and if you’re unsure about the particulars, consider getting some financial advice from a trusted professional who will take into account your budget and predicted revenue.
Internship schemes present an ideal opportunity for start-up owners to get an extra pair of hands on board with no expense to the business, and free positions will be snapped up like hotcakes by university students and grads. Treat your interns well, and you can keep up a continuous stream of enthusiastic young workers into the future.
Facebook, Instagram and Youtube are all free platforms which – if cleverly utilised – can reach millions. The best news for you is that they’re totally free, so get your digitally-literate interns on the job, and watch your business’ reputation grow.
If deliveries are a vital element of your product or service, save money by buying your own truck. You may even want to pool resources with a proximate business if you know you won’t be requiring the vehicle 24/7.
Discretionary spending refers to any purchase which is not absolutely essential to the operation of your business. Even when your product or service is experiencing high customer demand, refrain from splashing out on additional employees or that fancy (but inessential) new piece of machinery.
Useful tips to improve cash flow in your startup so you reach your current and future goals.
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