5 Ways to Keep Costs Low When Launching a Small Business
Small businesses, in order to survive in a competitive market, will need to consider every possibility at their disposal to save resources. Every dollar you save is a dollar you can reinvest into making your fledgling enterprise succeed. Whether that comes from knowing the latest tax changes ahead of time or whether you are trying to find deals on startup equipment, you are planning to give yourself some breathing room.
To that end, we have compiled here a few points of information to help you if you’re launching a business and trying to save some money. Keep reading to learn more:
1) Reconsider Your Space and Location
While some businesses will certainly have to have main street storefronts and offices, many businesses don’t even necessarily need to be easily accessible to be successful.
Consider your revenue model. Are you mostly going to be handling things remotely or online? How many customers or clients do you plan on getting by people walking through your doorway? If the answers point in that direction, consider getting an office in a location that might not see a lot of traffic but does see low rent prices.
Alternatively, if you look at your business strategy and find no need for a location at all, consider cutting it and operating the business straight out of your home. This is a great option for online startups or businesses that have mostly remote employees (or employees that could be remote). It’ll depend on your industry and several other factors, but you might be able to reduce or remove a huge expense.
2) Find the Best Deals on Services and Utilities
It’s not necessarily the most glamorous work, but taking your time to find the best deals on necessary services and utilities pays off in the long run, but those costs add up. When you’re getting internet service, for example, saving $20 a month (a feasible goal) can save you nearly $500 over the course of a two-year broadband contract.
Some utilities might not be negotiable, but for some online services, you might be able to find group deals for all of your employees or cheaper alternatives from startups looking to prove their worth. Try getting creative with this consideration, and you’ll likely be able to save quite a bit each month.
3) Utilize Technology to the Fullest
Speaking of alternatives, many soon-to-be business owners don’t even consider just how much technology can help them and how wide the range of free or cheap apps is. Even if it’s just saving you or your employee’s time, those are wages you either don’t have to pay or working hours you can have spent more productively.
Things such as Taxbot, productivity software, enhanced grammar checkers, and a variety of email enhancements can all either keep your business running more efficiently. Beyond that, you can be certain there are industry-specific solutions out there just waiting to be discovered. Take some time and do some searches, and you just might be surprised at the results.
4) Consider Outsourcing Some Jobs and Tasks
The freelance market is making it easier to get professional-level help without committing to full or even part-time employees (and all the costs they entail). If you need professional writing or marketing services, but only on an as-needed basis, there are plenty of sites that can help you, and there’s certainly one that will meet your budget and needs.
Virtual assistants might be another option if you find your time is stretched too thin and simply have a variety of smaller tasks. They’re often inexpensive and can perform many tasks more efficiently than you could think of. In fact, with the right instructions, they might be able to find deals you would otherwise miss, by virtue of experience in the market.
5) Use Clever Marketing Instead of Expensive Marketing
Many businesses will eschew marketing (generally to their peril) after looking at the costs of some of the larger marketing firms, but we would like to propose a middle path.
There are ways you can market your business so that you reach the people you need instead of the uninterested masses. Most of this comes down to finding your core customer base and trying to advertise directly to them as much as possible. Remember that is isn’t about views so much as it is about leads. An ad reaching 100 people with only one person clicking on it is not as effective as targeted ads reaching 20 people for the same price, but ten out of those 20 clicks becoming customers.
Additionally, instead of hiring tv spots or expensive firms you could look into brand partnerships, try drumming up goodwill in the community, encourage people to leave positive reviews, and whatever you can do to get word-of-mouth to do your business’ marketing for you. Good service pays dividends in most industries.
The above five points are certainly not the only ways you can save money while launching your business, but they are some of the most prominent and great starting points to begin your search with. As you become more confident with your business and get settled into the launching process, the right mindset will cue you into other ways to save.
Author bio: Kevin Conner is the founder and CEO of Vast Bridges, a customer acquisition and lead generation company in the home services arena. Since 2011, more than 10 million consumers and businesses have used Vast Bridges’ web properties. His strengths lie in creating a strategic vision and leading a team to successfully execute that vision.
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