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How to Save on Costs When Starting a New Business

How to Save on Costs When Starting a New Business

Starting a new business is difficult for most, especially when you don’t have any funding or loans to help out. Even if you do have financial support, starting a business is tough.

Most businesses fail due to the lack of cash flow and in this article, we will take a look at some of the ways you can start your business while saving money so you can invest it into other areas of your business.

Buy Used Equipment

Buying used equipment is a great way of getting the best products you can afford on a budget. New items do have the advantage of coming with a warranty but used items can also have an extended warranty if you purchase from reputable retailers.

Buying used equipment can sometimes save you thousands on costs and you can then use these savings to reinvest in your marketing efforts or somewhere that’s going to make your business more money down the line.

You can get used supplies from eBay, Gumtree, Facebook marketplace, and you can even find them in your local newspaper’s classified sections. It’s worth taking your time to find these used items as it offers your business big savings in operating costs.

Get a Virtual Office

A virtual office gives you the look of professionalism while being on a budget. Some people expect you to have an office so a virtual one is a good way of keeping up appearances while saving money.

One problem I see new business owners face is they think if they get a virtual office they can’t meet clients and this isn’t true. With most virtual offices you can in fact hire meeting rooms at an extra cost and only when you need them.

If you do like being in contact with people and don’t like working from home you also have the option of renting a shared workspace. A shared workspace is a great place to meet other entrepreneurs, and it’s also another great way of looking professional while saving money until you grow your business enough to need a fully serviced office.

Hire the Smallest Space Possible

Starting a business is exciting and it comes with a whirlwind of emotions, one moment you’re ecstatic and another you are worrying about fulfilling orders or making sales. In moments of happiness, it’s easy to find a huge office space or warehouse and commit to it but in tougher times it makes your problems worse.

When signing agreements for office space or a warehouse get the smallest space that will work for your business while your business is still growing.

You can also consider other forms of buildings for your business. For example, you could swap out an expensive warehouse for a much cheaper storage unit.

Scott Evans of Pink Storage, who owns a storage business in Cardiff, Swansea and the rest of South Wales had this to say:

“Many business owners rent huge warehouses and soon realize that their profits are being eaten into very quickly. What they don’t realize is that they could have hired the same storage space for a fraction of the cost by using storage units.”

I think that’s a good tip from Scott. Especially if you have a small business that requires a lot of inventory.

Barter Your Services

When starting off you should ask others if they would be interested in exchanging services. For example, a marketing agency could barter their services with a photographer. A photographer could provide them with photos while the marketing agency could help the photographer market their business and get more customers.

When staring out bartering services may seem a little cheeky, but many businesses do it. The worst that could happen is the other company says no. All you need to do is keep messaging others until you find a company that is happy to barter their services for yours.

Buy in Bulk

Where possible try to buy your stock in bulk as it can save you money and can help you build up a better relationship with your suppliers who may give you better deals on future products.

Having a good relationship with your suppliers is not only a great way of saving money as a new business but it’s also a great way of learning about new products as suppliers always want to keep their customers happy too.

Conclusion

Starting a business is tough, you not only have to have a good product or service but you also now have to worry about marketing, taxes, your companies budgets, staff, and so much more. The tips above can help you at least keep on top of the budget side of things when it comes to running your business.


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by Harvey Carr // Harvey Carr is a contributor to Businessing Magazine.

Opinions expressed by contributors are their own.