11 creative ways to keep cost down for your small business

Starting the journey as a small business owner is great, exciting and you’re bursting with fresh hope and ideas for all the amazing things you want to achieve. However, are you aware that most small business are guaranteed to fail before they hit the mark? What can you do to join the elite club of startups who make it past the first year and beyond?

Many entrepreneurs fail to properly plan before jumping into business. You want your business to look professional to your customers but you lack the resources to get going. You need to find the balance between your shoestring budget and effective resource management. If you learn how to trim expenses early in business, you’ll gain good financial habits that’ll guide operations as your business grows

11 tips for managing cost without affecting quality at your startup

 

• Workspace

 

To a large extent, your workspace determines output. At the beginning you can swing for some good looking second-hand furniture online. Alternatively, visit discount stores to get a great buy or target black Friday deals where you’ll get up to 50% off some furniture items.

For online startups, web design, web hosting and domain are some of the initial costs you’ll handle. Get a freelance designer with experience creating SEO friendly sites on platforms like Upwork and Fiverr. View cheap and quality web hosting and domain names at top domain registrars like Discount Domains NZ.

 

• $5 mistakes

 

As a new startup, it’s important to keep cost as close to zero as possible. You make small mistakes that becomes the key to your success. For instance, you can use a website builder to set up your site if you don’t want to pay a designer. Attend trade shows, industry events, conferences and group networking events where you’ll meet influencers and promote your brand free. You don’t have to spend a lot on Google AdWords. Where established brands are spending thousands on campaign yours should come under $20-$50.

 

• Hire employees who ‘ll accept a small salary

 

Most startups usually have 5 employees or less depending on the nature of the company. Scout employees whit high-risk tolerance who’ll accept a smaller salary, keep cost down and stretch available resources. It might sound mean but hey, you’re a startup, money is tight and so are jobs. Such employees will recognize the equity value of your company and become more invested as the company grows.

 

• Use smart thermostat

 

While it’s important to save cost, there are some expenses you’ll have to make if you want your employees to produce quality work for you. Moreover, your customers comfort should be of utmost importance to you and while they’ll understand the need to lower overhead cost, they won’t shell out the big bucks if they’re uncomfortable in your facility.

With programming and smart thermostats, employees and clients get comfortable while you cut your climate control costs. You can save between 12-15% in the cost of your heating bill.

 

• Track everything that goes out

 

From the moment you decide to launch your startup, keep track of every penny going out of your business account. This includes the cost of computer supplies, web hosting, office furniture, advertising, legal fees and other business expenses.

This serves as evidence when there is a squabble or legal issue and it allows you check what’s important and the things your business can do without until you have a solid footing. Don’t forget tax benefits, keeping receipts of all your purchases makes it easy to calculate deductions.

 

• Networking

 

Want to get people talking about your brand without overshooting your budget? Start networking. Clients won’t come to you in the comfort of your workspace. You need to meet the right people who’ll take your brand to the next level. Such people are board members, friends, advisors, industry influencers, established business owners in your niche and more.

You’ll have a good depth of skills set that’ll come in handy if you surround yourself with a diverse group. Find a mentor who started out like you but has reached the top level of business to guide you and offer free advice.

 

• Don’t buy, rent

 

For startups that require large spaces or heavy machinery you won’t use regularly, renting is the smart choice. Keep off all big purchases that’ll drain your finances.  It also reduces your tax burden because leasing is deductible in most countries.

 

• Always get value for money spent

 

We keep pounding on the importance of keep expenses down but it’s important to get top quality for certain items. If you’re starting an online store, you’ll need quality content that properly describes your brand and encourages people to shop from you. Same with web hosting services. Never go for free hosting, shared servers are suitable for startups. Its more secure and can handle traffic as you build your brand.

 

• Go paperless

 

Aside from the obvious ecological benefits, the cost of mailing supplies, paper, ink and postage adds up to your expenses. Only print files that are absolutely necessary. Use digital bill payment system and invoice. File paperwork on your business PC and ditch the file cabinet. If you must use a printer, buy a laser printer and adjust the print settings to low quality 75 DPI. It looks the same as a high-quality printout and you’ll save money on ink.

 

• Consider outsourcing

 

Its common practice among startups to hire contract workers who’ll perform the same functions as a full-time staff without all the extra perks and benefits such as medical and pension. If there is any function you can’t perform yourself such as accounting, HR and content creation, outsource to external agencies. With cloud computing you can streamline everything from project management, account receivable, scheduling and paying bills.

 

• Shut down non-essentials after hours

 

The trick is to determine machineries, computers and heating systems that don’t need to run overnight. It’s a straightforward way to reduce energy bills without affecting operations. Before heading out, ensure your staff or contract workers have shut down all their workstations. PCs left running overnight is a major factor for high energy bills in most white-collar offices.

Conclusion

Becoming an entrepreneur doesn’t have to rob you of your life savings. Don’t waste money on things that have no immediate value for your business. Leverage social media to grow your online presence, join forums to stay on top the latest news in your industry and always negotiate everything before agreeing on a final prize.