Starting a small business is life changing and saving money initially is only going to help you long term. In this article we will take a look at some of the best ways to save money so that you can go on to increase your profits and become a successful business.
Most businesses go out of business within a year and this can come down to many things but ultimately they aren’t making as much money as what goes out of their accounts. Keeping your small business expenses down will allow you to work on your business to make it more profitable. In this article we will look at ways of trimming your expenses.
Rent a smaller office
Renting a smaller office space isn’t as glamorous as having a big office, I can understand that but you think about having a larger office 5 years down the line. As a new business your entire goals should be to survive. A large office with big fees every month is going to put more pressure on you than you need at this point and as a startup you probably don’t need a big office.
You may have a lot of equipment or books, training manuals and more but you do have options. Larger furniture can be sold or put into storage, while training manuals and old VHS tapes can be digitised so they don’t clutter your office space.
You may also want to consider a co sharing workspace, not only is this a much cheaper option but you will also meet like minded people in the same situation as you. This could help with sales further down the line or it could help connect you with people who could improve your business too.
Cancel subscriptions you don’t need.
Small business owners often subscribe to software that they think they need and forget about them. This costs you money and wastes your company's budget. To save money on your subscriptions make a list of all the expenses you have in an excel spreadsheet and mark them vital or non essential. For the non essential subscriptions simply cancel them.
It doesn’t matter if this only saves you a few dollars because over the course of your business life this could add up to thousands of dollars.
Invest in low cost advertising
Advertising is a dreaded word to a new business but without it people won’t know you exist. Advertising doesn’t need to be expensive and it could be the case of printing out leaflets and putting them through peoples doors. It could also be the case of using methods such as cold emailing and cold calling to connect with potential customers. These methods aren’t as glamorous as running full advertising campaigns but they work and will allow you to make money without spending much of it.
Using cheaper methods of advertising is going to allow you to get more customers so you can invest in other methods such as paid advertising in the future. It will also allow you to get your first few customers and get feedback from them so that you can improve your product or service.
Hire less experienced staff
Hiring less experienced staff will allow you to pay a lower wage but it will also allow you to train them to a level that you are happy with along with getting them to understand and carry out your business processes as you want. More experienced employees will cost more and sometimes will want to do the work in a different way.
You could also consider hiring freelance workers as you have no long term commitments to them and you can also hire multiple freelance workers for a few smaller tasks and then only hire the freelancers that are compatible with your business and the way you work.
You can find freelance workers online, just make sure to hire ones that have good feedback.
Conclusion
Saving money and cutting down on expenses is vital if you want your new business to succeed and while some of these tips may only cut down on your expenses a little, everything helps.
Author Bio
Oliver Lewis is a content writer at Digital Converters, a website that helps turn your old media into new digital content, providing you with a piece of mind with multiple data backups.
