4 Ways to Keep Start-up Costs Down
While there are many reasons why a start-up can go belly up, running out of financial resources prematurely is one that business owners can avoid. The key lies in ensuring money is spent only on essentials that help to run your business efficiently.
How does one go about this? The answer is proper budgeting. By understanding what’s important to your business, you can plan your costs such that every dollar is stretched and unneccessary expenditure is avoided.
Read on for a few basic tips on how you can keep your start-up costs down and chances of success up.
1. Get the workspace you need, not want.
Where you work does have an impact on how well you work, but using this as reason enough to rent or purchase office space may prove to be more of a luxury than necessity.
Instead, consider turning space that you already own into an area where you can conduct your business – perhaps a spare room in your house or a portion of a living room.
However, if having a proper office is absolutely essential for your business, then opt for sharing office space with another company to reduce your rental cost.
2. Prioritise equipment purchases.
From printers to computers, to furniture and stationery, the cost of these items can add up to quite a bit if left unchecked. To keep this from happening, make a list of important items and purchase only those needed to get your business up and running, leaving less essential items for later.
Also, when buying office equipment, always insist on reliable brands like Canon. With high quality products that require minimal maintenance, Canon delivers efficient performance that helps keep your overheads down. Furthermore, Canon offers a wide variety of business solutions to suit any budget or business need.
3. Hiring full-timers versus part-timers.
If yours is a business that you can run on your own, then labour costs will have little or no effect on your bottom line. But if your business requires employing additional help, then you must pay close attention to your costs when increasing headcount.
One good way to meet your labour needs without exhausting your budget is to hire part-timers or freelancers. Ideal for coping with business booms that are seasonal rather than continuous, this gives you more flexibility and affordability when it comes to manpower expenses.
But if full-timers are needed, rather than offer a purely fixed salary, try implementing a pay scheme that consists of fixed and variable components (similar to a bonus) tied closely to the company’s performance. This will help keep your labour costs down during bad times.
4. Embark on modest marketing.
As a start-up with limited funds, you may think that marketing is a luxury you can afford to push till later. But in reality, it is when you are new to the industry that marketing can perhaps help your business the most.
Start out by distributing flyers and brochures about your business as this helps to get your brand out and may generate sales. And no, you don’t have to engage a professional design or printing company to do this.
All you need is a computer paired with a Canon printer and you can make your own high-quality marketing materials without bursting your budget. Furthermore, Canon’s reliable after-sales support means you can count on great printing performance for years to come.
You should set some money aside to create a simple website for your business too. Platforms such as WordPress or Wix make it easy for you to do so. Optimizing your website to boost your website’s search engine ranking is another effective and low-cost way to market your business. Learning to harness social media platforms such as Facebook and Twitter can also help to expand your online reach.
As you can see, keeping start-up costs low requires self-control, resourcefulness and creative thinking to get maximum returns for every dollar you spend. Once mastered, this useful habit will continue to be of great use even as your business flourishes.