Most startups go through a few challenging years before they are fully established. This is normally one of the most exciting times for the business owner, as they are filled with passion, enthusiasm and ideas (even if they have limited resources).
And if they do make it through the first few years, they will have the skills and knowledge necessary to run a successful business for decades to come – but admittedly it can be quite difficult to stay afloat to begin with.
Thankfully we are here to lend a helping hand. Here are five simple ways your startup business can save money.
1. Start With A Mobile Office
Do you sell products or services online? If so, consider starting with a mobile office rather than a physical one. The average cost of office space per month in the UK ranges from £650 to £1,500, which is a big expense for a new business – but if you work from your home, you won’t have to spend anything on space. This is a great way to cut initial costs, and then you can invest in space once your business has started to grow.
2. Apply For Relevant Grants
There are lots of grant options for startups in the UK. This includes government grants, as well as grants from universities, organisations and private companies. For instance, The Prince’s Trust offer grants to people aged 18 and 30 to help them run their business, and Innovate UK offer government grants to businesses that are innovative and forward thinking. So have a scout online to see if you are eligible for any grants; you may be surprised by the grant offers you find!
3. Set A Flexible Budget
If you have only just started your business, you may not have written a budget… but this can quickly cause financial problems if you end up overspending. So set a reasonable monthly budget with set costs (such as insurance, stock and utilities), but remember you may need to spend more sometimes. After all, there are often unexpected, hidden costs when starting a new business, so it could be useful to put aside some extra money as a safety net.
4. Build Your Business Using Outsourcing And Freelancers
Do you need to hire staff? If so, consider outsourcing the work to freelancers. This means that you won’t have to pay for office space or equipment, and it also means you don’t have to hire locally. This is often beneficial as it means you can hire people with the exact, specific skills you need. For instance, if you want to find a virtual assistant who has experience with startups, you should have no problem!
5. Embrace Free Tools
There are hundreds of free tools that you can use to help set up your business. Zoom is a free tool that you can use to video chat with clients and employees, while Slack is a business communication tool that lets you share files safely with your employees. This will make your business seem more professional and legitimate, and it will also make day-to-day work much easier (and cheaper!).