5 Ways to Cut Costs as a Startup
In the modern world, small businesses are created every day. But, a shocking 90% of these fresh startups will fall apart before they reach their second year of business – a startling fact. A large problem associated with this is the fact that many overextend themselves money wise and are never able to actually keep up with themselves. For this reason, many fail.
To help you avoid becoming just another startup percentage, here are some of the best ways you can work to cut business costs as a startup and make it to that all-important third year of business!
1 – Rent Cheaper Offices
Commercial offices and properties come with a lot of costs. Rent, business rates and even simple things like electricity and heat can quickly mount up. Reducing this can be quite simple. Rent a smaller space at a cheaper cost (this helps reduce business rates as well), then make sure that you hire a commercial property management company such as Roger Hannah & Co or similar to help cut the costs further. You may be surprised by the different methods they employ in order to reduce overhead costs in the long run.
And the fact is that on the whole you and your business may simply not be able to afford the costs that come with having a physical office. For that reason, one final way to cut this cost is to have no office at all. No, really! Work from your kitchen office and enjoy the weight off your shoulders that comes from only having one rent to pay on a monthly basis.
2 – Cut Staff Costing
Having a huge staff may be quite tempting as a startup. It gets more done, makes your growth look rapid and it can feel great to work with like minded people. But, it can also be quite a major drain on your resources on the whole. Especially so if your costs still exceed the earnings of your business. Keeping a small staff or even simply working by yourself still in the early stages of your business can be the more worthwhile choice – it can certainly mean more stable expansion at a later day.
3 – Computing
Computer and technology costs can be extensive, especially as a new business. So attempting to reduce this for your business in its early stages can be extremely beneficial in the long term. And the fact is that you don’t have to buy the latest or greatest when it comes to technology and gadgets, sometimes even the barebones can be perfectly fine when it comes down to it. Some form of laptop/computer and an internet connection really can be your gateway to business success.
And if you are looking to expand your business, but without spending a bomb on computers, the consider secondhand options. There are also plenty of technology renting schemes in larger cities such as London or Manchester which may work to your startup budget’s advantage.
4 – Outsource Work
One of the biggest wastes of money in any startup comes from wasted time, which often sees you performing menial tasks or following emails/calls/etc. at the expense of more important work. For that reason, outsourcing some of this work can be one of the easiest ways to pull back some time and help you make more money in the long term.
Outsource small administrative tasks, your taxes, chasing invoices and all these other little bits which take up too much of your time. Or alternatively outsource the work itself. That way, even if your attention is pulled elsewhere, you still have a reliable source completing the work in the background – allowing you to potentially double your earning potential over time.
5 – Reduce Paper
Paper, printing and all things connected to it can be quite expensive. Especially if as a business you print off everything from sale receipts to your emails. Cutting down on this can be good for both your business and the environment, so long as you find the right way to do this. There are a number of waste-saving practices you can put into place:
- Print double sided to reduce amount of paper used.
- Send files electronically, where possible.
- Reuse scrap paper for notes.
- Shrink fonts and widen margins.
- Keep your business off of mailing lists where possible.
On the whole, this should help reduce the paper waste across your business. And lead to a better environmentally friendly business on the whole.
At the end of the day, the amount of ways to cut costs as a business are infinite. But some will actually really work and help your startup save money in the long term.