Starting up a small business isn’t easy and there are a number of gambles you really don’t need to take so early on – especially in the current economic climate. Keeping a new business going in the early days is tough and often the money won’t start to flood in instantly, so many entrepreneurs need to think of alternative ways to maximise their capital.
Here are a few quick tips to ensure that you reduce your daily expenses until your business gets off the ground.
Analyse Your Bills
As a small business, there’s really no point in having both landlines and mobile phones for your employees. In this day and age there are a number of office-based, free alternatives to a landline. Google Talk and Skype are just two examples of free communication programmes that you can use to contact clients from your office for free.
As is also the case with everyday life, check that you’re really getting value for money with your company’s mobile phone tariffs. Do you really need unlimited SMS messages and internet on a business phone? You could probably save yourself a bit of cash by getting rid of these and replacing them with, say, 300 free texts a month. It’s these little costs that add up and create extra expenditure that many small businesses can seldom afford.
Plan Your Purchases
Impulse buys never did anyone any good, especially when working on a budget. Buying things like stationary and office supplies in bulk will help minimise costs, and advance planning will mean you don’t get stung by paying for convenience when you desperately need something like printer paper. Buying in a hurry often comes at a price, which over time will add up. The same applies to tasks that are delegated and outsourced, such as marketing and printing. If you need something in a hurry, you can often be held to ransom by the suppliers.
Although some in-house staff can be essential, certain tasks may not require the full-time presence of workers. Often, these tasks can be carried out by contractors who can work from home. This is good for a number of reasons. Firstly, this means they can work on an ad-hoc basis meaning that they only work when necessary and you aren’t handing out a full time wage every month. Also, it prevents the need for a bigger office as you won’t need to find them a permanent place to work.
Monitor Your Driving
This is particularly useful if you hire a driver, as a GPS vehicle tracking system allows you to monitor whether they’re taking the most efficient routes, driving too fast and not taking liberties with their start, finish and break times. The information gained from these can help you determine if fuel costs could be saved by taking different routes or just driving more efficiently.