Start up businesses – How do you save money?
You’re a start up, and you know starting a business can end up an expensive process.
Some businesses can start with minimal costs. They may only need to build a simple website, but other businesses need premises and furniture. Licenses, and many members of staff all add to the costs before you open your doors.
Whatever business you’re starting, keeping costs down is important especially in the beginning. So with that in mind, here is a list of ways to save the pennies;
Embrace remote working
If it’s only you or a couple of people in the beginning, you can afford to wait on renting new office space. Start up businesses are often just one person. There may be no need to rent an office yet.
Renting space is often the biggest expense a business faces. Why not work at home if you can? Save money in the beginning.
You can stay in touch with any employees you have with messaging apps like Slack, Zoom and Skype.
Trello is a great app to help you organise your staff, without the need for an office.
Buy used equipment
You might be tempted to go all out and buy lots of brand new furniture and shiny equipment, but it’s not always necessary.
You can save a lot of money by buying used items that are still in good condition. Then you can replace them if necessary when you have the money spare.
Freelancer can be a great addition to a start up trying to save money. The main benefit is flexibility. You can hire them as and when needed. They’re also cheaper than hiring employees as you won’t have to provide them with employee benefits because they’re self-employed. You might not even need to provide them with a desk as most of them work from home anyway.
Be careful that they don’t fall under the IR35 rules for self employed workers! That’s an extra bill you don’t want!
You might know about haggling from your holidays abroad. After spending time in the local markets agreeing a price with the local traders. This doesn’t mean that it can’t be used back home.
For some, haggling for a better deal might make you feel uncomfortable. This happens all the time in the business world. If you can get a better deal, you can save a lot of money. You could invest the savings elsewhere in the business. They can only say no.
Try free software
If you need software but are still in the early days, then free versions could be a good, if temporary solution.
Free versions will have limited features but if you can make do, start off small. Then when you’re ready, expand and buy the full version when you can.
Many of the paid providers, such as Xero and Quickbooks Online run free or half price subscriptions for some of months. Try them out, and find one that works for you.