Starting a business is a risky venture but many start-ups are already putting themselves at a disadvantage when it comes to budgeting. Many start-up businesses have a tendency to overspend, while the saying you have to “spend money to make money” is true it doesn’t mean you can just throw money around and expect to make it back. We’ll look at 5 simple tips to save your business money.
At the same time, you can’t spend nothing and expect to make money. If you don’t advertise your products or services people will not know about them. Staff that will work for free are few and far between, so how do you go about saving money while still running your business at optimal levels?
Once you’ve covered the first steps such as raising funds, finding premises and promoting your venture, you’ll need to come up with ways to reduce your day to day expenses.
Doing this is important since it helps you stretch your capital and improve growth during the first few months and years. It also helps you avoid wasting money on unnecessary things —money that you could otherwise spend on more pressing expenses.
Let’s take a look at these 5 simple tips that your start up business can save itself money.
Reduce your utility bills
One of the things that can eat up your budget is your utility bill. This is particularly true if you’re not careful when monitoring your electricity, gas, and water usage and don’t do anything to reduce your consumption. Fortunately, it’s not yet too late because you can start taking steps to lower your utility bills.
One thing you can do is to have an automated meter reader attached to your gas meter, which we’re incorporating into the majority of our meters. An Automated Meter Reader takes accurate readings from your meter, reducing estimates. You’ll pay only for the exact amount of gas you consume. You’ll also avoid paying too much money on your gas bills. Meaning you’ll have more funds to spend on other areas of your business. Call us here at if you’d like to learn more.
Stay as low-cost as possible
More likely than not, your business doesn’t need a fancy office in a prestigious address or a shiny new car with all the latest features. So why invest in these things? They might impress your peers and target audience, but they won’t do you any good; in fact, they may even be harmful because they push you to spend more money than you can afford. So, as much as possible, stick to the basics (an office space with reasonable rent, a cheap but decent-looking car) to keep your costs low.
Look for the right suppliers
Another one of our 5 simple tips involves choosing the right suppliers. It can be tempting to choose the first supplier you come across with, but don’t give in to the temptation. Instead, do your research and look for companies who can provide you with the best products and services at the most affordable prices.
If you need a business gas supplier, look further afield. Our rates are based on live market gas prices on a minute-by-minute basis, which means we offer the best possible prices and help you save more money. We also provide variable contract lengths, so you’ll enjoy freedom and flexibility since you won’t be tied to long-term contracts.
Lease instead of buying items outright
The next of our 5 simple tips recommends you to rent not buy! There are times when you need to obtain a high-priced item (such as a delivery van or a new piece of machinery) for your business. During these instances, it’s definitely better to lease what you need instead of buying it outright. Leasing is almost always cost-efficient since you won’t need to tie down your cash in assets (which usually depreciate in value the moment you take them away from the store or dealer). As a result, you’ll have the vehicle or equipment you need without compromising your cash flow.
Use existing resources
The final one of our 5 simple tips includes using the resources you already own. One day you might want your business to have its own office block, retail store or luxury website but they are goals to work towards. Resist the temptation to start spending money for things you don’t need straight away. For example, avoid mass media advertising spend, you don’t need to be on television or in every newspaper. You could even use social media sites like Facebook and Twitter to promote your brand. Instead of offices use space in your own home. Remember, a mighty oak tree began as an acorn!
Use these 5 simple tips now and let them help you cut costs and save more money!