Starting a new business is an exciting time. But it’s also a difficult time for your finances. Cutting costs at every corner can be essential to getting your business off the ground, especially if it’s just you on your own for the time being.
There are some great savings you can make while getting your business started, it just takes some creative thinking and some self-control. You’ll soon figure out there are things you don’t need to spend money on, especially in the early days of your business.
Here are some money-saving tips for beginner businesses to help you save money to get your venture off to a great start.
Work from home
While you might have dreams of working from your own office, it’s not always possible from the very beginning. To help save on your running costs, one of the best things you can do is work from home. Even if your business requires you to be out on the road, such as personal training or working a trade, your admin and other tasks can all be done from home.
If working and living in the same place becomes too much, you can always use a low-cost coworking space. There are a lot of benefits that come with coworking which could make it an excellent move for your business.
Make your own lunch
Food can be a big expense for both you and your business. But making your own lunch each day will be a very simple way for you to save money. While it can be tempting to eat out all the time, you could find yourself saving a lot of money if you cut back.
By the time your business starts making a profit, you could find that you’ve already ditched the habit of eating out and are far more frugal when it comes to your lunch choices.
Take a look at some tasty lunch options you can make at home.
Try active travel
Your travel costs can be another significant part of your expenditure, while also having an impact on the environment. Could active travel be a way for you to cut costs? Active travel includes walking, running, cycling and other modes of transport that require some physical effort – helping you stay fit and sustainable at the same time! Leaving your car and public transport behind could save you a lot of money, but it will also make a great story to help people get to know you and your business!
Cut your phone and internet costs
Having a fixed phone and internet connection can be an ongoing cost you might not be able to afford, yet. But as pay as you go deals are becoming more popular, it could be worth you trying one of these for a while to help keep your costs down. SMARTY provides a fantastic pay as you go service, which includes great rates for data. You can tether your computer and other equipment to your phone and only pay for what you use, helping you save money during those initial months.
Meet for coffees, not lunch or dinner
Business meetings are necessary for all sorts of reasons. You might need to meet clients to discuss jobs, suppliers, investors, etc. But if you choose to meet for lunch or dinner, the cost is soon going to add up. While these expenses can be recoverable, they can still leave you out of pocket in the short-term. So why not just meet for coffee instead? Choose meeting times outside of normal eating times and by sticking to just coffee, you’ll easily save some money. Choose coffee shops with a loyalty card – you’ll soon end up getting some of those coffees for free!
Outsource where you can
While your business is still in its early stages, it can be difficult to take on any employees, which means doing a lot of the work yourself. Outsourcing, however, can be a simple way to get work done without having to bring a full-time member of staff on board. There are some key advantages of outsourcing that can mean that you get the expertise you need, without having to hire employees right now. This will free up your own time to get on with other tasks, and ensures things are done promptly and to a professional standard.
Grow your business with social media
Marketing can be a significant expense for any business, but a new business might not have any marketing budget at all! There are a lot of ways you can grow your business using social media, and for some of them, you won’t need to spend a thing! You can even take advantage of free scheduling tools to make sure you stay on top of your social media posts. Over time, you can start assigning some of your budget to social media advertising, which can help you grow your business even further. Find out how much of your profits you should invest in your marketing to help you plan for the future.
Don’t be afraid to negotiate
New businesses need to be able to negotiate to get cheaper rates from suppliers. In most cases, if you don’t ask, you won’t get, which is why you shouldn’t be afraid to try haggling for a better price. Many suppliers can offer a trial period or a discounted initial rate to help get you on board and see if you’re happy with the service provided before tying you into a longer-term contract.
Partnerships can be a fantastic way to grow your business, as well as make some important connections in your local community. Whether you need help to sell a product or you need to team up for an event, a partnership can be a simple way to make the most of contacts and drive your business forward. Take a look at some of the steps to creating a partnership that drives business growth that could provide some huge benefits to your business.
Further your skills with free courses and workshops
As a new business owner, you’ll likely find that there’s a lot to learn about running a business. While you could go back to school and study, one simple and free option is to further your skills with courses and workshops. These types of sessions can teach you a lot about business and help you learn some valuable new skills too. Keep an eye on websites like LinkedIn and Eventbrite to find details of events taking place near you.
Make the most of teleconferencing
Teleconferencing is a simple way to conduct meetings that can save you a lot of money on your travel and meeting costs. There are some great tools to help you enjoy teleconferencing easily, such as Skype, allowing you to have productive meetings without having to travel. This can be an easy way to conduct long-distance or even international meetings, and will set you up with some good habits for the future. Remember that teleconferencing is also a greener way of meeting, helping you your business adopt sustainable practices from the beginning.
Boosting your productivity is one of the best things you can do to help your business save money. When you work smarter, you’ll get more done during the day, allowing you to free up the rest of your time for other tasks. When you’re working for yourself, finding the motivation can be tough, but some simple things you can do include:
- Starting work early and prioritizing your most time-consuming tasks.
- Making the most of planners and project management tools.
- Set aside key times during the day to read and respond to emails.
- Minimize distractions in the office.
- If you’re working from home, keep your work and home lives separate.
- Take a proper break at lunch to run personal errands, exercise and get some fresh air.
- Make a list at the end of the day of the things you need to do tomorrow.
Keep a close eye on your expenses
Monitoring your spending is crucial to help you stay on track. By scrutinizing every penny you spend, you’ll be far more aware of which business costs are necessary, and which ones you can cut. A spending diary can be very useful in those initial months to help you work out your business expenditure, and can help you make some easy decisions about future spending. There are also apps you can use that will help you keep track of your receipts, allowing you to analyze your spending while also preparing for tax returns and meetings with your accountant in the future.
The early days of starting a business can be a stressful time. But by cutting your spending and keeping costs to a minimum, your finances will be one less thing to worry about. Being frugal isn’t a bad thing when it comes to running your business, and you’ll be grateful to have adopted some smarter spending habits early on to help you run an efficient business in the future.