Small businesses in the modern world of business are well aware that every penny goes a long way and contribute to the overall success of the business. If you are a small business owner starting out in the world of business we have ten tips to help you save money. These tips to cut startup business costs include purchasing a second hand car v leasing options and running your office space remotely.
#1. Run your business remotely
The modern way to run a business is remotely. Avoid wasting money on additional office space if there is no need for it. There are plenty of companies who have a small number of employees to allow their staff to work from home. There is plenty of cloud based software on the market to ensure you can communicate easily with your employees when you need to. Running your business remotely can save you a significant amount of money in the long run. Try it you have nothing to lose.
#2. Set Up
A business needs to make a number of different choices upon its formation. Whether you decide to be a sole trader, company, co-op or otherwise – you need to pay the legal fees to set up your business. Utilising online formations websites can be a lot cheaper than going through an accountant or through more formal means and can get your business off on the right foot, saving money from the off.
#3. Lease a car
Need a car to meet with clients? Purchasing a car can be a big expense and leave a big dent in a small companies cash flow. This is why leasing is growing in popularity. Companies pay a small amount each month so the cash outflow is spread across the year and companies can even benefit from tax relief. If however you do want to purchase a car many leasing companies give you the option to purchase the car at the end of the term alternatively buy a second hand car.
#4. Shop Around
You’d be amazed at the number of start-ups that just go straight in and purchase an item without looking for a reduction in price. However, it’s often best to do a bit of research online before you purchase any large item. Finding a better deal can save your business a little on one purchase but over many it can make a notable difference to operating costs and should be something you always do.
#5. Save money on utilities
We have previously mentioned you can save rental costs by working remotely. Save money on your utilities working remotely too. There is plenty of research to suggest that a healthy working environment can be achieved whilst saving money on water, gas and electricity. Reducing your utility bills each month will make a big impact to your bottom line.
#6. Hire only when Needed
Hiring in people before you really need them can be an expense too far for start-ups and something that people should consider. Hiring people when you don’t need them will suck up operating costs and mean you have a number of people just sitting about.
Interns can be a good option depending on their skill sets and often fill roles within a company before you need to hire expensive employees. In turn, if you can manage to keep these employees motivated and upskill them then you will find they may be valuable long term, paid members of your team. It’s certainly worth consideration.
#7. Bring in your own device to work
Popular in the US, businesses can save thousands of pounds simply asking their employees to bring their own laptops, mobiles and tablets into the workplace. With the development of cloud based software employees can work anywhere in the world on their own computers. Not only will this save money but it is also proven to improve productivity amongst the workforce.
#8. Have a flexible budget
In the majority of cases businesses do not go down the formal budget route. They spend money, invest in technology and carry out other activities without having a formal budget in place. A budget is paramount to the success of any budget. Having a budget in place will ensure you stay within your budget and also dictate your profit margin for the year ahead. That being said the budget should also have room for flexibility.
The world revolves around the internet; it is everywhere. We use it to pay for shopping, pay bills and to carry out research. If we are looking on the internet then your customers will be doing this too. Therefore it is vital for your business that you spend a significant part of your budget on online advertising. This can be expensive but the benefits in the long run will make up for this expense.
Creating a blog with rich content can be an expensive element. In addition to this businesses owners simply do not have the time to write and post content to their website which would appeal to their audience. Hire a content writer. Alternatively if you do have the skills and the time write the content yourself. Here are some tips on how to woo readers and win business.
#10. Know your tax
In your first year of trading take advantage of tax deductions. If you are not sure what tax deductionstax deductions are available to you hire an accountant who will be able to show you how to save money. Did you know International Financial Standards allow business owners such as yourself to deduct an element of travel expense for every mile travelled? Plus business owners can get tax relief for purchases that will have added value in the future such as computers and printers.
Furthermore when you are buying hardware and software for your business do not be afraid to ask for discounts. After all every penny counts. You may be surprised that there are plenty of other companies willing to offer a discount/deal.
For a new business, cash flow can be a delicate situation and understanding how to make the most of your money can be the root of business success. Take the above seven tips into consideration and start saving money for your new business today.
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