How to limit your business costs when you are starting up
Starting up can be a challenge as we often start with next to no money and it is hard to know what is worth investing in and what is not.
SAVE ON OFFICE SPACE
First and foremost, try to not get an office space if you can. It is one of the most expensive cost you could start with. You can do all your work from home or from a co-working space which are often way cheaper. Or find a business that is willing to rent you out space in there down time like restaurants for example.
SAVE ON MARKETING
Another big cost for businesses is marketing. When first starting out, it is tempting to spend a lot of money on marketing in order to get exposure and attract customers. However, this is not always necessary nor the most effective use of your limited resources. There are many free or low-cost marketing channels that can be just as effective, if not more so, than traditional paid advertising. These include content marketing (such as blogging or creating video content), social media marketing, and search engine optimization (SEO).
SAVE ON ACCOUNTING AND BOOKKEEPING
When it comes to accounting and bookkeeping, it is important to keep costs down by using accounting software that automates as much of the process as possible. There are many great options available, both free and paid, Akaunting is a great starting point if you have no money at all to spend and it can serves multiple companies, there is also paid features that you can add as you go that are extremely cost effective. If you can afford a monthly subscription, Xero is one of the most user friendly system to use especially if you hate keeping slips, you can scan and upload everything through the mobile app. There is multiple options out there that you can look into if those don’t suits you. Those are my favorites so far and came with good recommendations of my accountant.
BUILD A RESERVE
Last but not least, always remember to set aside some money each month to build up a reserve. This will help you weather any unexpected financial challenges that may come up along the way. If you are able to grow to a point where you only spend 1/3 of your monthly income or less it is ideal. No matter your industry there is always unforeseen events and expenses and for most of us taxes are a part of that. If you can save keep 1/3 for expenses, 1/3 for stock to keep on hand and 1/3 to save just in case. This will relieve stress from you and allow you to spend more time growing your business and planning then rushing and hustling to join the 2 ends every month.
DIVERSIFY YOUR INCOME STREAMS
As a bonus, try to think about multiples sources of revenue. I am not talking about an other venture but a different stream in the same business. If you are making candies for example, try get into a shop where you can resell them and explore a online shop or reseller Website to sell them on. This will bring you more income without having to add any expenses on your books.
CONCLUSION
By following these tips, you can keep your business costs under control and free up more money to invest in other areas of your business.
Pingback: Free or low cost solutions to track your business expenses - Marketing Dreamz
Pingback: How to start creating a marketing strategy for your business with no money and no followers. - Marketing Dreamz