Simple ways to slash your startup costs

One of the biggest drivers of the rise in new business startups over the past five years or so has been that the technological age has reduced barriers to entry in a wide variety of industries. This has brought startup costs within reach of everyone.

However, it can be a fatal mistake to assume that this means costs are something you do not have to worry about. Reduced costs does not mean no costs, and they can still creep up if you do not monitor and manage them properly. The sobering fact is that running out of cash is the single largest cause for new businesses to fail.

Here are some simple measures that will help prevent your new business enterprise from becoming just another statistic.

Don’t pay through the nose for office equipment

Equipping your new office with the very latest technology and luxury furnishings might sound tempting, but you can be several thousand down before you have even started trading. There are numerous second hand options out there that will look professional, serve you well and cost a fraction of the price.

Second hand doesn’t have to mean ebay and boot sales. There are reputable specialist suppliers who will sell you reconditioned IT equipment that will come with a warranty, so you should have no reliability issues.

Seek out cheaper software and accessories

The savings don’t have to stop with the hardware. You can also halve your costs, or even eliminate them by making some shrewd choices with software and equipment. If you’ve bought a reconditioned computer, the chances are you will need to install an operating system. Think carefully about an open source solution like Linux or Ubuntu.

You can reduce your printing costs by shopping around for ink and cartridges via online suppliers. These HP 301 cartridges come in at less than half the price you would pay on the high street.

Consider lease deals

If you are determined that things have to be brand new, then that’s your choice – but there is more than one way to skin a cat. Leasing is a no-brainer when it comes to company vehicles, but is also becoming increasingly popular in other areas. There are pros and cons to leasing, so you need to consider each item on its merits and perform a full lease / purchase analysis to work out what makes the most financial sense.

Hire interns

It is unlikely that you will be able to do everything yourself, and it could be dangerous to your business, your health and your sanity to try. Still, staff costs can be a considerable drain on your resources until the business finds its feet and starts generating some serious revenue.

Interns can be a perfect solution. These are individuals who will be as keen as mustard to prove themselves and get some experience under their belt, but will cost far less than recruiting experienced staff on full contracts. In other words, a win / win for all concerned.