When first starting out as an entrepreneur, you constantly have to be on the lookout for opportunities to help save money and time, while still providing value. The saying ‘you have to spend money to make money’ is not always true. This blog goes over a few obvious but often overlooked ways to facilitate your small business. Don’t waste money on a fancy office or expensive equipment, read this blog and capitalise on the savings.
Reduce Location Costs
Lots of businesses that are now billion dollar companies initially began in someone’s one apartment or basement. Think AirBnB, Apple, Virgin Group etc. The location of your business need not be a snazzy, top-of-the line office block in the heart of the city to be successful. Renting office space in a low-cost area or alternatively, trialing shared work spaces when necessary, may help reduce rent costs, business rates and utilities.
Reduce Software Costs
Cloud computing and communications systems are often freely available these days and can really help slim down IT costs. Ditch expensive data storage plans, phone systems, and servers, for free to low cost software services such as G suite, Slack, Xero, G chat etc. Shop around for the cheapest and most viable online solutions to your business, just remember not to sacrifice quality for price – it’s a delicate balance. Do your research, and make sure all your paid systems are working at maximum capacity for you.
Reduce Staff Overheads
This is a bit controversial but if you are just starting your business, it is easiest and best to outsource easy, labour intensive tasks and short term projects. Rely on friends, families, even interns prepared to do easy low-training jobs. If the job needs to be performed by a professional, there are many hiring sites such as Upwork or Airtasker that allow you to easily outsource all those jobs that don’t require an in office presence. Later when your business is turning over a profit you can afford to hire and maintain onsite employees.
Ask for Help
No man or woman is an island! Talk to staff members, suppliers, mentors etc. and ask for advice regarding where leakage is occurring and how to save on costs. Ask you accountant for help with cost cutting, particularly on common business expenses such as GST or fringe benefits tax. Offer a bonus or company award to any staff member who can solve a particularly difficult and expensive issue. As an entrepreneur or business owner, you’ll save time and money by asking for ideas and perspective along the way.