Perhaps the most challenging part of starting your business is the financial aspect. If you are the creative type that comes up with ideas and solutions, you probably see numbers and budget to be constraining and at times uncontrollable. It seems unreasonable that you can save money at the very beginning of your business adventure when it is time to spend and invest the most.
However, if you don’t wish for your startup’s budget to dwindle into nothing before your business has had a chance to grow, you need to tend to its financial state at the start. With that in mind, here are 4 ways in which your startup can save money.
Avoid the technology trap
While you must have had a vision of the software solutions and gadgets you would need for your startup to conquer the business world, now it is time to be realistic and think about what is necessary and what isn’t. Too many inexperienced and enthusiastic entrepreneurs fall into this trap of sticking blindly to a plan which can mean acquiring the technology they don’t need which either won’t be used or rarely enough to make the purchase uneconomical.
So, before purchasing the latest software, first think if you really need it, and for instance, if you sold a service to a client, it is recommendable you wait before you acquire the said software your employees will be working on for that client until the first payment is made. This is how you know there will be no backing up at the last moment so that you can go ahead and purchase the equipment or software.
Get the right card
Sometimes it is not about you but your card – many entrepreneurs with small businesses mix business and private expenses and they purchase business-related items with their private cards or the other way around creating chaos for their accountants to untangle. If you are using the services of an outsourced accountant, you will be charged more for this complication so there is more than one reason to be careful with your expenses.
If your startup fails to pay the debt, certain credit card issuers will go after you which can affect your personal credit score. Luckily, there are reliable credit card compare platforms that can help you find the best credit card and compare it with others so you know for certain that your choice is optimal for your business needs. You might be looking for a card with the lowest rates or most cashback so based on those desires, you can find the card which will help you save money and not spend it excessively.
As a startup owner, you may be reluctant to outsource since you want everything to be done by you or your team of reliable employees but that isn’t always necessary. Sometimes you just need somebody to tend to a one-time project or some mundane task which takes a lot of your time and slows down your operations. So, for starters, outsourcing can save you the valuable time you can use for other more important tasks.
Another benefit of outsourcing is that you get a specialist to tend to a task which is especially convenient if the task is a one-time job. These professionals don’t need to be trained and you pay only for their service and nothing more which isn’t the case with a fulltime employee which means you also save money. You can also gradually expand to new markets since you would have experts at your back and call.
If you are the carrier of your business idea and the face of your startup, your employees are its backbone. They will know if your business is struggling with finance and they might even have some useful advice to offer since they have a distinctive point of view. You should always listen and ask for their feedback because it can show you how you can improve certain processes and operations so that you diminish the time needed to accomplish them and therefore save money.
But in general, that optimal productivity lies between boredom and high-stress and neither of the two states is desirable. You need to make your employees be engaged so that they feel like their work is important for the startup which will stimulate them to give their best. This will also reflect on the customers who will feel this change in attitude and you will create a bond with your employees so that they will stay longer with your business.
Saving money doesn’t mean that you will be depriving your business and the employees of basic needs – it means that you will be more prudent with your expenses just by stop to think before you purchase anything. This means that you will not be buying expensive cutting-edge technology unless you have an actual need for it.
You might also find outsourcing to be a great match for your needs because you will pay an expert only for that particular portion of work and nothing else. And sometimes it is not how much you spend, it is how you spend it because different credit cards have different benefits which include various promotional rewards that can help you save significantly if you choose the right one. Also, don’t forget the importance of your employees’ feedback!
Guest Author, Raul Harman, s a B.Sc. in Innovative entrepreneurship and has a lot to say about innovations in all aspects of digital technology and online marketing. While he’s not enjoying travel, football and great food, you can find him on Technivorz.com.