Many small, new businesses don’t make it past their first year of operations because of how financially demanding and volatile the market is. However, there is a chance to make your business a success – you only need to learn how to be financially savvy and make better spending decisions. Here are five easy ways to cut costs and save money in business:
#1. Be Smart with Office Space
Did you know you don’t have to spend a large portion of your profits to give an air of professionalism to your customers? As well as significantly enhancing your business image, virtual office solutions can save you thousands of dollars. You can have that premium business address and phone number, all while you work from the comfort of your home. What’s more, you get the benefits of call forwarding services, a professional receptionist, meeting room and lounge access, mail handling, and so much more under one affordable monthly cost.
#2. Nearly New
When you first start in business, it can often be a challenge to stop your excitement from boiling over in the form of several poorly thought-out purchasing decisions. While you may think it’s necessary to buy a brand new desk, chair, sofa, and coffee machine, do you need these items? Sometimes, exercising restraint can have you starting on the right foot to financial success. Look around for second-hand furniture and technology, and save those “wants” such as coffee machines for when you begin to make a profit.
Hiring staff in any small business can be a significant financial burden. However, if you want any chance of having that sought-after work-life balance, you need to get a helping hand. If you’d rather not have to pay for things like insurance for your workers, then you may like to consider outsourcing work to contractors and freelancers instead. In most circumstances, they cover their own costs while you can utilize their services as and when you require them. In the case of freelancers, you can also choose someone with the payment expectations and experience to match your requirements.
#4. Haggle with Suppliers
Starting a new business is about more than finding leads for business opportunities. You also need to consider where you will source products, inventory, and even stationery. If you intend on opening accounts with other businesses, don’t accept their terms as the very best they can do. Don’t be afraid to haggle. If they want your repeat business, they will come to the party. You may even find that their bottom dollar is far lower than what they offer you the first time you do business.
#5. Talk to an Advisor
It seems a bit backward, but sometimes you have to spend money to make money. If you are struggling to cut your costs and may soon be one of the over 50 percent who fail in business in the first four years, then you may need professional help. Talk to a financial advisor who can put you on the right track. They can offer in-depth and real-time advice about market conditions, where you’re going wrong, and where you can make improvements.
It’s easy to let the excitement of your new adventure set your credit card bill skyrocketing. Unfortunately, this may lead you to end up on the backfoot as you’re trying to get your new business off the ground. Don’t let your eagerness get in the way of your financial success – try out these cost-cutting measures, and you may find yourself making a profit far sooner than you ever anticipated.