Finance

Cutting Costs On Your New Business

There’s no way around it: starting a new business does require money. You’ll need capital to begin with, and you’ll need to invest some money into your new business before you can expect any returns. However, that doesn’t mean there aren’t simple ways to reduce the overall starting costs involved in setting up your business. Even those with a very tight budget have a shot at starting their own successful enterprise. Just use these cost-cutting tips to make sure your start-up expenses are as minimal as possible.

Get the right funding.

If you’re looking into financing options to get the right investors involved in your business, do your homework before jumping into any decisions. Some options will be far less expensive in the long-term than others. If you’re starting any kind of business that requires heavy and often expensive equipment, then a funding service like Atlas Equipment Finance can help get you started without spending your entire start-up savings on those necessities. Speak to the experts and make sure you’re getting a great deal on all of your financing.

Negotiate wherever possible.

Don’t accept a first quote on anything when setting up your business. For example, if you’re meeting with potential suppliers to discuss your options, take the time to negotiate the costs to see if they could possibly carve out a better deal for you in exchange for creating a lasting business relationship. It could end up being a win-win situation, especially if they’re looking to gain a regular new client.

Avoid travelling.

Some new business owners spend a great deal of time and money travelling around the country (or even internationally) to meet with clients, negotiate deals, or conduct meetings. While this is a great way to do things in an ideal world where money is limitless, when you’re on a budget then travel can be an unnecessary additional expense. It’s particularly inessential when you consider how technology can help you out. Use video chats or multi-party video meetings to talk for free instead of spending a fortune on flights and hotels.

Employ freelancers.

There may be particular roles that need to be filled in your business that don’t necessarily require a long-term permanent employee. It can be cheaper to hire freelancers or contractors for particular jobs instead of bringing a new employee on board who’ll be expecting a full-time salary and a few benefits or perks. Ask your contacts in your industry for referrals for experienced freelancers in your area – you can always bring short-term staff in as a full-time employee if your budget expands or they prove themselves to be an essential member of your team.

Re-consider your workspace requirements.

If you’re running a new start-up with very few employees who actually need to be sitting in an office throughout the week, you may want to consider whether a traditional office space is essential for your business. Many new business owners start by running their start-up from home, so consider transforming your spare room into an office and then growing from there. Co-working offices are also a great place to get things done without renting out a private space for your business if you don’t have the funds for your own official office yet.

About the author

Oliver Revilo