9 Strategic Ways to Reduce Your Start-up Costs

Normally, business start-ups have to operate within restricted budget parameters. After all, every penny counts when you have to keep the financial belt tighter than you would like. You are probably a pro at identifying what is an absolute must for your business to run against what you desire. As your company grows, you will require more cash to fulfil its needs. Not only that you have to manage your cash flow effectively, so you can market your services and build your client base.

Do not worry, we are here to advise you on some areas where you can not only save on costs but be efficient too. Take a look!

Outsource your IT

Yes, it may be more efficient to outsource your IT services rather than hiring a full time, salaried professional to work inhouse. You will save costs and gain a collection of skill sets rather than just one single mind. An IT support company, such as, Mustard IT who provide business IT support in London , provides customised services to start-ups and even gives a free consultation. Remember in today’s day and age, an effective IT infrastructure is the backbone of your company and imperative to your company’s success.

What will you gain with hiring an IT Support company?

  • You will gain complete access to cloud computing services- from planning, migration to deployment. The IT team will take care of everything and you won’t have to lift a finger.
  • You can rest easy and not have to worry about which hardware devices to get, what software’s to use or what servers will be best for your business. Your IT support team will do all this hard work for you and develop your infrastructure.
  • You will have access to round the clock IT support. If anything malfunctions, there will be a dedicated IT professional available to scrutinise it and resolve it as soon as possible.

Forego Your Own Office

Do you really need your own dedicated office? It’s just extra rent money that is going out of your pocket but could be injected into expanding the scope of your business instead.  It’s the age of the internet! Have your team work from home and collaborate virtually. You can avoid getting an office space for a long time as there are plenty of efficient collaborative software’s that will allow you to work in the online space.

If you really need to be in the same physical area as your workforce, then check out co-shared working offices that are much cheaper in terms of rent. You can rent just a few desks or an entire space in such commercial rental premises, depending on your needs. Not only that, there is no fixed term contract and you are free to rent for a day, a week or a month. Need to arrange a meeting with your client? Check if there are facilities in your city to arrange a conference room for free, such as available in cities such as New York and Los Angeles.

Spend on Marketing

You should be a marketing-driven company that recognises the potential of this approach. Marketing is the medium via which your services and message will reach your prospective clients and facilitate your product/service sales. As important as it is to set up your back-scale functionality, your return on your investment will take time to appear whereas marketing will reflect results in the short term. Consider cutting costs in other areas of your business and reallocating that budget to your marketing expenses. Once your sales pick up, pay yourself back.

Don’t Hire People

We’re all about creating jobs and employment – but your start-up is in its infancy right now and needs to grow a great deal in order to achieve sustainability. And once your business has stabilised, that’s when you put the word out that you’re looking for new recruits. Trust us, you do not want to burden yourself with fixed salary expenses, legal fees, and insurance costs. Just take the easier route for now as you set up and hire freelancers to meet your business requirements.

Save those Receipts

You may be surprised to learn this: but every expense you undertake in relation to your business start-up is tax deductible. This can include your office rent space, your internet bill etc. So, get a special box to save those receipts and benefit from a tax break!

Buy or Rent?

Need to do a photoshoot of your product? Rent a camera and lighting equipment to take your pictures as buying it will only be more expensive. However, if you refer to office equipment such as computers and printers- then you need to do a cost-benefit analysis. Run the numbers and see what makes better sense for your business. How paper intensive is you? We recommend you implement a no paper policy and be environmentally friendly! Let’s save those trees now, shall we?

Take Free Stuff

Who doesn’t love free giveaways? There is no harm in this! Use the free trial versions of variant software’s and programs until you are able to identify what you want in the long term or until your business kicks of the ground.

Reduce Legal Fees

Do you really need a lawyer on a monthly retainer at this stage of your business? Give it a thought. No, not really! Check what kind of paperwork you can file yourself and save some serious legal fees. Only get a lawyer when you really need one!

Track Your Subscriptions

Subscriptions are simply awesome! Pay a monthly fee to use certain services and enjoy the benefits. Just make sure you keep track of all your subscriptions as they can tend to pile up. When you think about it separately, ten pounds here and there won’t sound like it will make a big difference on your wallet. However, if you have 10 different subscriptions then that’s more than a hundred pounds you’re dishing out on a monthly basis. When you stretch that over a period of twelve months, how much are you paying out? That’s right, a whopping twelve hundred pounds! Have to control that, now don’t we?

 

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