If you’re an entrepreneur with a startup business (and let’s be honest, why else would you be on this website), then you know how important it is to spend your limited funds wisely. You’ll also know how crippling overheads can be. It only takes one tough month.
Of course, you need to spend money to make money, but it is about spending that money wisely. Of course, you can’t completely escape the cost of rent, utility bills, and other such expenses, but you can limit the damage substantially.
That’s where we come in. We’ve come up with a few tips on how you can reduce your overheads and use that limited stash of cash in a much better way.
As a startup, your office space is likely going to be your biggest overhead. That is why it is so important that you consider exactly what you need carefully, and sacrifice anything you can. You’re a leader now, and leaders need to know how their every decision affects the bottom-line. As such, if you can afford to work from home without harming your business prospects, then work from home. Another option is to look at serviced offices like the Guardian Business Center or to even set up shop in a shared office environment. Not only will this see you save some pennies, but it could be that you share your space with businesses that could help yours and thus increase your customer base. If nothing else, it will serve as free marketing.
When you’re first starting out, having full-time employees is a risk. Sure, you can’t launch a business alone because launching a business requires so many skills, some of which you won’t have. But outside of the key people, hiring full-time employees will drain your funds. As such, start outsourcing certain areas of your business on a task by task basis. The pool of freelancers is bigger and more talented than ever before. It could be that you need a logo, then hire a designer to do that one task. It could be you need to come up with an advertising campaign, then hire an ad agency. You may need a content writer, then look for someone great on UpWork. Don’t understand how to deal with your taxes, then hire a freelance bookkeeper to come in once a fortnight.
One of the things so many entrepreneurs do is panic about what they need. They don’t want to miss out on something that could help them, so they end up paying for things they don’t need. For instance, do you need to buy business cards in an age where LinkedIn and Facebook rule the roost? Perhaps you do because your business relies on networking, but if you can get by without then get by without. The same goes for web hosting. Do you need to be paying for the most premium web hosting, or could you get by with a few fewer gigabytes each month? Basically, you should not pay for anything you don’t need. That could be supplies, it could be services, it could be space or people.