The first year of owning a start-up business can be extremely challenging. Many business owners struggle with working overtime and financial worries, and it can be tough to start afloat. In fact, a recent study found that over 20% of start-ups fail in their first year – but this doesn’t have to be you.
If you are savvy with your business, it is entirely possible to have a successful first year. Here are six ways start-ups can save money during their first year.
1. How Start-Ups Can Save Money During Their First Year: Use Free Tools To Start With
One of the best ways to reduce your spending is by using free tools to start with. For instance, you can use Venmo for payments (instead of paying a payment processer), you can use Trello to track tasks, you can use Slack to communicate with remote employees, and if you want to create video content you can simply use your smartphone and a ring light.
It can be tempting to spend money for a more professional feel, but in reality lots of small businesses cut costs in this way!
2. Don’t Be Afraid To Ask For A Discount
It doesn’t matter if you’re buying office furniture, software or supplies; if you are buying in bulk, don’t be afraid to ask for a discount. There are lots of big companies who are willing to reduce costs for start-ups if they choose to work together on a long-term basis, so this can save you a lot of money.
And if a supplier says no to a discount, no problem; you can always shop around for a better deal elsewhere.
If you want a constant supply of handy tips for small business owners, check out our Instagram account. We post handy tips every week, helping you to grow your business while also saving money.
3. Test Your Marketing
You can also save a lot of money by testing your marketing campaigns while they are live. Lots of new business owners just pour a set amount of money into Facebook or Google ad campaigns, but they don’t check the campaign while it is happening to see what is working (and what isn’t). Doing this allows you to adjust the campaign for better results, so you get more bang for your buck.
4. Don’t Pay For Custom Software If You Don’t Need It
Lots of start-ups think that they need custom software from day one, but in reality this is a huge and often unnecessary cost. Instead go for more affordable software that can be altered to suit your business. This will save you some serious money, and once you are more established you could consider investing in personalised software.
5. Apply For Relevant Grants
6. Ask Bigger Companies For Perks
You can also reach out to bigger companies to find out if they have any perks for small businesses. Google Cloud and Amazon both have programs and credits to make things cheaper for start-ups, and this is a great way to reduce marketing/shipping costs.