7 Ways to Save Money on Your Startup Business
Starting a business is never walking on rose petals. Statistics show that nine out of ten startups fail for various reasons. While failure can depend on several factors, the main one seems to be lack of financing. Successful entrepreneurs cut costs on every possible way and invest their earnings back in their business. This can make an immensely effective impact on steering the business towards stability and success. Startups are like toddlers. Even small humps and bumps can make it unstable and collapse. Therefore enough care must be taken to see that all the possible pitfalls are avoided and the investments are never put to risk or waste. Here are 7 ways to save money on startup business.
Go for mobile office
Small businesses startups can do a great job on mobiles. It is not prudent to waste money on office space and also extravagant utilities. A mobile office will let you work with small number of employees and also can give the freedom of working from home. Resort to measures like using free or cheap software, communicating with the team on a daily basis and operating on the cloud. These approaches can save you money. A mobile office will also give the freedom for the employees to work from remote locations and cut on travel costs.
Set up an energy efficient office at home
Energy efficient home office is a great breakthrough that startups are vigorously pursuing for the several advantages it has. Working from remote locations can save you enough money. It is all the more important to evaluate the utility bills of the location from where you are operating. The business plan an entrepreneur evolves must take into account a number of factors. The most sophisticated energy efficient homes of our times consume lesser gas, electricity and water. In this way, they help a startup reduce the overhead expenses.
Try the BYOD concept
This is a recent trend that most businesses are finding highly profitable. Expanded as bring your own device, the idea is to let the employees bring their own devices to discharge their assigned tasks. This approach can help businesses save tons of money spent on laptops, smartphones and tablets. It is also discovered that most employees feel at home working with their own devices. The most encouraging advancements in the arenas of cloud storage technology and enterprise mobile apps, it is eerily possible to work from anywhere in an efficient and productive way.
Make a flexible formal budget
Most business owners do not understand the importance of writing their own budget plans. Creating a formal business budget is essential before spending on utilities, marketing, office space, transport, communication, salaries and others. Estimate the range of costs you will have to bear. This formal budget will give you the clear cut route to move forward. While it is important to stick to the budget, make a saving wherever it is possible to invest back in the business.
Go for smart solutions
Your business website or blog content is going to support a wide range of marketing strategies like online parking, search engine optimization and page ranking. It can be very expensive to maintain a blog with fresh and classic content. As a small business owner might not have the time to write blogs to attract potential visitors, however, try producing your own content or exercise great care in hiring remote writers as some good level of proficiency is required in creating quality content.
Work on your tax deductions
Take advantage of the tax deductions available to make a saving. Also work on several other aspects like utilities, advertising, diverse categories associated with startups, advertising, marketing and others in the way possible and as much as possible. If it is possible, you can hire an experienced accountant. Alternatively you can do some research and take care of the issue personally. Explore the possibilities to save on transportation and lodging allowed by IRS.
Negotiate with suppliers
This is an important way you can save enough money. While choosing the software, services or products, never hesitate to negotiate with businesses to save on costs. It is important that you do not underestimate every penny that you can hope to save during startup. If you do some exploration, you will be surprised to come across several businesses that are willing to give you products and services at subsidized rates to see that you turn their loyal customer.
Every penny saved is a life giver to your start up business. Irrespective of whether it is the topic of infrastructure, overheads, marketing or production, the success of a small business does not depend on how much is spent, but only on how it is spent. So, focus more on how successful your efforts are rather than trying to maximize your spending. You have a long journey to make before your business starts yielding expected results and till then the fuel (investment) you have got in the tank must help the game prolong.