So, you have decided to take the risk and create a startup business
So, you have decided to take the risk and create a startup business. Congratulations are in order because some people don’t have what it takes to follow their dreams. But, don’t think that starting a business is as easy as it sounds because it is not easy. In fact, it is one of the most difficult things that anyone can attempt. Why is it so difficult? It is difficult because you will struggle to make money, and you will also haemorrhage it faster than you can blink.
The key to creating to a successful startup business is not to make money, but to save money.
The more areas in your startup business that you can cut back, the better chance you have of surviving and making it to the second year. As you may have guessed, cutting back is not easy as well, but thankfully there are several tips and tricks that can help.Money Saving Tips That Will Help You Sustain Your New Startup Business
#1: Hire A Lawyer
The first and most important step is to hire a lawyer. The benefits of a lawyer are varied and wide-ranging, but to begin with they will help you form the company. Creating a business is difficult because there are so many options, from a sole trader to a public limited company. As a result, choosing one is not easy. Plus, it is also fraught with danger. A good lawyer, for example, will instantly tell you that a sole trader formation leaves you vulnerable because you are the only owner. Although you get all the power, you also get all the responsibility, and that is not a good thing when you are on the wrong end of a lawsuit. Besides, if you do end up in the courtroom for whatever reason, you will need a skillful solicitor to limit the damage.
#2: Hire An Accountant
The next step is to hire a quality accountant. When it comes to money, good accountants know everything there is to know about what to spend, when to spend and how to spend. And, believe me, all of the latter make a big difference to your business’ liquidity. A person who is good with numbers can also look at what you are spending and tell you whether that is too much. One glance at your company’s finances and they will instantly know whether the ship is rocking or whether it is about to sink. What’s more, they are also very proficient when it comes to tax. Tax is about as annoying as business expenditures come because it is a lot of money and it is almost impossible to avoid. However, a top accountant will know how to balance the books legally so that you pay less tax at the end of the year. They are almost worth hiring for this alone!
#3: Outsource As Much As Possible
As the boss, there is always the temptation to do everything your way because that is how you prefer to run the business. For the most part, this means you wield the power and everyone else follows your lead. Although it is easy to see why you may choose this path, it is the wrong path to choose. By delegating power to external sources, you can save the firm a fortune. Most outsourcing specialists can perform mandatory tasks at a much cheaper rate to a much higher level. Why else do you think call centers in India are that common? But it is not just your communication needs that it aids. Outsourcing can work for almost anything, from information technology to marketing and advertising. Of course, you don’t abandon full power because you still want a say in proceedings. But, you do leave them to their devices and the agreed strategy for better results. Meanwhile, you have less to do and more time to concentrate on the more important assets of the firm.
#4: Embrace Technology
Whether you are a technological whiz kid or an old fart that is stuck in their ways, it is time to embrace technology for the sake of your business. Quite simply, the right technology will save you a fortune. It will simplify the business processes and make the company more efficient. For example, if you work in manufacturing, a machine will do the work of three to four people. And, it will do it as quick or even quicker. But, even if you are a conventional business, there is still several ways technology can work for you. From an administrative point of view, payment software will keep all your files and data up to date. Finally, you can cut down on your labor expenses, some of the biggest expenses in any startup business.
#5: Especially A Virtual Office
When it comes to technology, a virtual office is essential. You are probably thinking, what is a virtual office? It is an automated system that takes care of your administrative needs and replaces the traditional office. Because you are looking to cut costs, you will undoubtedly slash the areas that you feel are unnecessary, like a secretary. However, in real terms, a secretary is a lot more important than you may imagine thanks to the image they portray. In basic terms, small and medium-sized firms don’t have secretaries and assistants. So, without one, you seem like a small, unprofessional company. Luckily, virtual office packages come with everything you need to make sure you look as professional and as legitimate as the big boys.
#6: Use New Age Advertising Techniques
Advertising is changing, and from your point of view, that is a Godsend. In the past, small businesses had to compete with the big fish by using the same methods, but with half the budget. How is that fair? The answer is it isn’t fair, and it is one of the reasons so many companies dissolved. Nowadays, the tables are turning thanks to something called social media. With the help of Facebook, Twitter and YouTube, plus many more, you can mix it with the big boys and boost your market share. And, not only is social media effective, it is cheap. In fact, it is free! All you have to do is sign up for as many accounts as possible and learn how to use them properly. Then, you don’t have to spend a penny, and you can reach thousands of people at the click of a button.
#7: Get Sponsorship
The best way to boost your appeal is to host an event. Events draw potential customers in from all walks of life, which enhance your ability to make a conversion. Even if they don’t, they will be more aware of your brand and they will more than likely use you in the future. It is a win-win situation for every business when done right. However, as you may guess, hosting an event is expensive. To host a top quality event, you are looking at thousands of pounds, if not more, which is why you need a sponsor. A bigger firm with more money will gladly foot the bill as long as they get something from the deal. Your best bet is to head to a business that has similar interests but that isn’t a competitor. Then, you can explain how your event will promote their brand and all they have to do is get out their checkbook. It might surprise you how many prefer to foot the bill than do the donkey work.
#8: Haggle, Haggle And Haggle!
Who says that the retail price is the price you have to pay? Conventional wisdom suggests you have to pay the retail price, but conventional wisdom is wrong. It turns out that you can pay a far lower price for your essential commodities by asking for a better price. Most suppliers cannot afford to lose business. So, they will come to a compromise on the price. What you need to do is ask first and foremost, and then stay strong. In all likelihood, they will seem as if they don’t have any interest in your proposal, but they are bluffing. Call their bluff and you will save a fortune. And, if they are not bluffing, what’s the worst that can happen? To sharpen your haggling skills, take a look at this guide.
#9: Hire Inexperienced People
Experience is good, but it costs a lot of money. For a young startup business, it is money you cannot afford. But, there is a cheaper alternative: inexperience. Okay, it is not ideal, but beggars cannot be choosers. Plus, you can accommodate for inexperience by hiring candidates with intelligence, common sense and a will to learn. Over time, they will use these attributes to transform into the perfect employee. And, you will have secured them at the lowest possible cost. Be honest – that is a great deal!
There is no doubt that you are going to struggle to make ends meet. But, with the list above you should be able to give it a good try. Plus, there are plenty more hacks that will save your startup business a whole lot of money.