5 New Year’s Resolutions to Help Startups Save Money

5 New Year’s Resolutions to Help Startups Save Money

One of the first hurdles you’ll probably encounter as a startup is the lack of money. Unlike big-name brands, you don’t have a lot of cash to move with, so being thrifty is a skill you need to learn. Thankfully, there are some things you can do this year to reduce your spending, while increasing your savings. Here are five of them:

1.Don’t Go Overboard with Your Office Supplies

It is true that buying office supplies makes your work environment more productive. But if you don’t use them often, then what’s the point of buying them in the first place? If your board markers, Post-its, and other supplies are mainly just for show, you can do your work without them. Pens, on the other hand, are office must-haves—but you only need a few to help you close deals and write checks.

And if your startup relies heavily on printed material, there is a way you can reduce your expenses on printer ink. Everyone knows that printer ink doesn’t come cheap, and is actually more expensive than the machine in the long run. That is why you should purchase remanufactured ink cartridges instead. They are lighter on the wallet and yet offer the same print quality as the cartridges of original equipment manufacturers (OEM).

Pro tip: Spending on office supplies will solely depend on where you work and what your business specializes in. If most employees in your startup work from home, you don’t have to worry about purchasing a lot of office supplies.

2. Stop Buying New Office Furniture

No matter how “professional” your office space looks, all that flair won’t matter if your brand doesn’t deliver. Yes, while first impressions do matter in the world of business, clients care about your service more than the interior décor of your office. So instead of looking the part, why not focus on your brand’s overall output first?

On the other hand, if your office space needs furniture, don’t waste your time buying brand new pieces. You can use whatever tables and chairs you have—so long as they are in good working condition—or fill your space with second-hand furniture instead.

Pro tip: Improving your work space to help motivate your employees isn’t that difficult. You can play around with your office’s lighting and paint to create a calm and work-focused ambiance. It is also good to let your employees personalize their stations to reduce their stress levels.

3. Hire New Employees Only When Needed

Sometimes, startup companies believe that recruiting more people will help them prepare for a heavy workload in the future. However, hiring more people is a risky move, especially when the startups don’t have a lot of work to go around. Having idle employees will drain your operating funds. Therefore, before you start searching for more people to join your company, make sure that your projected workload isn’t going to be sparse. If you are having difficulties finishing tasks, even when current employees are helping you, hire interns or freelancers for the meantime. Their rates are relatively cheaper than someone who works full-time.

Pro tip: If ever you need to hire someone new, always remember that quality is greater than quantity. Hire someone who completes tasks efficiently, instead of hiring by the numbers. It is better to have someone who can impress your clients with their output, rather than having a hundred workers who can’t produce great work. Plus, it is cheaper this way because you only have to pay one person.

4. Go for Free or Cheap Advertising

Putting your brand on the map is one of your biggest dreams. But you have to remember that your company is still a startup. You don’t exactly have the funds to compete with the flashy ads your bigger competitors have. Since you’re starting small, why not choose advertising platforms that are within your budget? You can start by advertising to your local audience first before thinking about branching out. Free advertising is also available in a lot of places, but you must make sure that the advertiser is reputable or the ad space you’re getting is in a good location.

Pro tip: Use social media websites like Facebook or classified advertisement websites like Craigslist to get your name out. Not only are these platforms free, but they are sprawling with users with tons of networks.

5.Keep Financial Records Intact

Not a lot of startups realize that their business purchases are tax deductible, so it’s a good idea to start keeping all your receipts. You can see how much money will come back to you—so long as your financial records are clean and intact.  By the end of the year, a portion of what you’ve spent will come back to you, which is a good thing for startups working with a shoestring budget.

Pro tip: It is always a good idea to hire a professional to help you with your taxes. It might be an additional cost to you, but it’s a good investment. With the help of an accountant, you’ll be able to know precisely how much you’ll gain from your tax deductibles.

Operating with a startup’s budget isn’t easy. But follow these five simple tips and you won’t have any problem with saving money during the whole of 2017. Just remember that you don’t have to go big to impress your current and future clients. All it takes is honest to goodness hard work and lots of determination to get into the big leagues of the business world.