Starting up can be a very expensive endeavour and you need to keep costs low so you don’t overspend. This will decide the survival of your business so ensuring that you are cutting costs where possible and just keeping costs low in general will ensure the business is kept afloat. In this article you will be given manageable tips to make sure that you are spending on necessities rather than extra luxuries (unless you can really afford them).
Here are the top five tips to get you started on saving money and keeping start-up costs as low as possible:
Make it part of the company culture to save money. When you are starting out, you need to make all your employees aware of the situation and really make it a collective effort to keep costs low. This will give your team a purpose and incentive to actually help you save money wherever possible. As the business owner, you need to set the example for your employees. If you are cutting costs and becoming creative with your budget, it will also encourage your employees to do the same. Get your team to be innovative with the budget they have and make the most out of any budget no matter how small it may be.
Rewards Vs Expense
When making purchase decisions and considering extra expenses, really take time to consider if they are going to benefit you in the long run. Don’t get caught up with having a perfect office or work space, for example you can probably live without that ping pong table you’ve always wanted, at least when you are first starting out! Consider extra luxuries when your business is comfortably making profit. You will know what you absolutely must have, so ask yourself if you need it and be truthful with yourself before making any purchase decisions.
Having a budget and creating an expenses list will be crucial in the initial part of your business venture. A start-up budget will help your highlight all the costs that your business will incur, from fixed costs to one time spends. Having a good idea of how much money you need will prepare you to get funding for your business, and set you in the right direction. A budget will allow you to allocate certain amounts to specific items, for example if you’re running a restaurant you may set a certain budget for your furniture. You need to make budgets backed by educated guesses and research. Having a budget will help you to see where cuts can be made to save money.
You are a new business, you may absolutely need to hire staff. For example, you may need to waiters for your restaurant or a sales team for your marketing business. However, if you are running a hair salon and have the hair styling skills yourself then hold off on hiring more staff to begin with. It may be a natural thought to start off with a whole team behind you but a team will require salaries. Therefore, to save money during the crucial start-up process, be a little hesitant on hiring staff. Additionally, it may be your first thought to have an office for your business, however if you are a business of one or two people consider working from home at the beginning. Offices spaces can be expensive to rent, and if you can work from home until your business takes off, it will save you a great sum of money.
Market it yourself
The initial marketing you can do yourself and it can be relatively cheap and easy. To make a start, create a website which you can do through many different platforms such as wordpress. They are easy to use, and to get a basic template and design they are free. Also invest your time in social media, and start promoting your business through various social media platforms. Social media platforms such as Facebook, Twitter and Instagram are relatively easy to set up and they are free, which will save you money. Get your friends and family to promote your pages to give you a starting point. When you gather a small audience, start being active and engaging with your followers.
Bring the idea of keeping costs low to the forefront to your business and your employees goal because it can mean the survival of your business. More information on starting up and calculating start up costs here.