Beginning something new can be exciting and daunting at the same time. While the thrill is the drive for you to work hard, you need to calculate your costs before beginning the venture. Minimizing the expenses will be imperative since there won’t be much cash at hand. We have come up with some tips you can follow to cut your costs.
1. PREPARE A LIST
The first step towards saving money is to prepare a list. Prepare an excel sheet of the fixed costs, inventories required, like equipment, tools, raw materials, the marketing campaigns, and the costs involved in them. Research on the industry, on the companies belonging to the same industry, brainstorm the inventories you might be needing. It will help you figure out your monthly as well as yearly budget.
2. BE YOUR OWN CONTENT CREATOR AND MARKETER
To do this, you have to keep yourself regularly updated. Check the news, follow renowned people of your industry, take note of their tips, learn if there is anything new. Soak in the information that is out there and put your best foot forward while marketing your company. Given the social media platforms and the ease of their usage, it becomes quite convenient.
Nowadays, there are apps and videos available to learn everything required for your online presence; like Snapseed to edit pictures, Hootsuite to manage your social media, My Brand New Logo, a free logo maker for your new business. Using these platforms gives you access to the best features that are there in the industry without having to invest a handsome amount for the same.
A PR agency will do the job nicely, but when the firm is new – you have more time and less money, so DIY the marketing content. They make you independent. If you are knowledgeable and passionate, you could be your spokesperson. Be creative, simple, and persistent with your approach; it will create a strong presence for your business.
3. BARTER YOUR SERVICES
Bartering is an old school concept but quite an effective one when it comes to new business. If you require a service from another firm and have something valuable to provide to them, it will be a good business approach. Be generous while approaching the argument and make sure what you offer and what you ask for are of the same value. This will prevent embarrassment.
4. USE GENERIC OR USED ITEMS
You must cut down your expenses; hence, generic or used items are quite cost-saving. There will be ample equipment and tools available at 50% or 75% less cost despite being in perfect condition. You will be judged on how much benefit you can reap out of that equipment in the required amount, not on how new or used they are.
5. STRIKE THE CORRECT BALANCE IN YOUR EMPLOYEE RATIO
You will need fresh as well as experienced employees to succeed. Why? The experienced one will come with a range of knowledge and experience, which will boost your business. But you cannot have too many of them since the salary will be high; hence, you will need interns. They are fresh and are excited to enter into the professional world to gain real-world experience.
You might find some of them with sound theoretical knowledge of your chosen industry, which will suit a perfect position in your business. The stipend requirement of interns is comparatively less since they look for internships and exposure. Hence make sure you provide structured training with defined goals because positive word of mouth can go a long way.
6. GO GREEN AND PAPERLESS
Going green and using energy-efficient electricals saves costs. It cuts down your electricity costs to a great extent. Using LED bulbs saves three – quarter of your lighting bill per year. With the introduction of cloud computing, the requirement for paper has reduced to a considerable extent. We have Google to thank for all of it. The drive helps you store and share every piece of information with your team at the same time, Google Sheets helps in preparing your lists and budget, Google Doc helps you prepare your pitches and mails. All of this at no cost. It not only saves your storage space, but it also reduces your paper cost, which otherwise would have been quite an expenditure.
7. SPONSOR COMMUNITY EVENTS
The online presence is irreplaceable, but the offline presence is equally required. Sponsoring social and cultural events has one of the most practiced ways of doing so, but they are costly simultaneously. So, if you can join together with other small and new businesses like yours, as a sponsor, it might increase the quality of the event and your goodwill at the same time.
These are some essential yet missed out aspects of saving costs of your business. We wish them success in your business.