Spending it in the right areas and knowing where you can save
Keeping hold of the reins on your spending can be a tricky business when you finally get round to setting up yours. It can seem like you have to ‘pay to play’ at times but don’t let this dishearten or discourage you.
All businesses need start up capital, the key is spending it in the right areas and knowing where you can save if possible.
This blog post is here to help you trim down your expenditure and make the most of the money you’ve saved. Ensuring that you are getting bogged down with work and not bills will be the key to your small businesses growth and long term future.
If you’d like to contact us with some of your own top tips, be our guest! We’ll be updating this blog post and expanding the list beyond the initial 5 as and when a new top tip comes to light.
1. Can you work from home?
If you can, do it! This does depend on the size of your home, and the size of your business, but if you can get away with it, set up an office at home. Cutting out the huge expenditure of 12 month rental leases and the upkeep of the space, then think cleaners, furniture, phone lines, internet, refreshments, this list goes on. All this can be easily avoided if you’re able to work from home.
Also think of the money you will save from not having to commute to work, eat out at lunch time (and possibly breakfast) plus teas and coffees throughout the day. It all adds up. If you’re spending up to £10 on lunch, a further £10 on the commute and £10 on teas and coffees throughout the day, staying at home to work could save you upwards of £600 a month, that’s before you’ve even rented a place!
Commonly people say that working from home can make it hard for you to get motivated. Any person willing to set up a business and make a real go of it working from home should be motivated by the fact that working from home gives you the opportunity to turn a profit more quickly. This should be given serious consideration if you can manage it.
2. Budget, Budget, BUDGET!
If you don’t have a budget plan then you’re automatically on the way down a very difficult business path. Not having a clear handle on what your outgoings are and where they are going massively hinders your ability to cut costs, make savings and maximise profits. We also recommend having a quarterly review of your budget plan to see if there are any other ways you can save or any better ways to spend your money.
Utility companies will periodically have sales and deals that they launch throughout the year, if you time it right you could take advantage of better internet, phone or gas and electric contracts.
3. Be Energy Conscious!
This can be one of the simplest ways to save money, just by being vigilant about your energy consumption. We’ve lost count of the number of companies we have worked with (and for) that don’t seem to care. It stands to reason that if every computer in your office is running 24/7 then you will have considerably higher bills than those that turn them off come 5:30pm.
This really is simple stuff that we should all be doing anyway but you’d be surprised how few tow the line in a work environment. Hammering home the benefits to your staff will see your bills come down and your energy conscious kudos go up.
Making sure appliances aren’t left on standby shouldn’t be the limit of your energy saving endeavours though. Think about replacing light bulbs for more energy efficient ones, setting timers and motion sensors to lighting throughout your office. You’ll thank us when its time to pay the bill!
4. Learn how to market your business
Marketing budgets nowadays can be gargantuan. Long gone are the days of placing a few newspaper ads and possibly a radio ad or two. Now you have to factor in your website, the upkeep and development, on top of marketing it to the search engines, either organically or via social or pay per click means.
This obviously all adds up pretty quickly. If you can learn how to effectively manage any aspect of your marketing then you are cutting costs already. It will eat into your time and there will be a pretty big learning curve, as such it would be wise to cost your time appropriately and take on the areas of marketing that you can.
Setting up social web presences can be done for by yourself, or someone within the company, for free. This is a great place to start.
If you are a local or regionally based business we would also recommend signing up with Google MyBusiness so that you have local representation in their listings. This usually appears above the organic listings (where a strong SEO campaign will see you placed) which is a very prominent place to be. Essential stuff.
5. Utilise apprentice and intern schemes
With the sheer number of apprentice and intern opportunities it would be foolish to ignore such a willing workforce. Get in contact with your local council, local universities and apprentice schemes to get the word out.
You should have no problem filling roles as long as you are offering value back. Bringing in young, talented and highly motivated individuals is a great thing to have at your finger tips but don’t waste their time making teas and coffees. Educate them on key areas of your business and give them the opportunity to own the role after their initial time with you has elapsed.
If you adhere to the tips above you’ll find that you’ve saved yourself a considerable amount of money. Thankfully these tips can be applied to any business but if you have any more you’d like to share, get in touch!