Starting a business is never like walking on rose petals. Some statistic shows that nine out of ten startups fail for one or many reasons. While the failure of a startup can depend on several factors, the main factor seems to be a lack of financing. A successful entrepreneur cut costs at every single way possible and invests savings back in the business. This can make a significant impact on steering the business towards success and stability. Startups are like toddlers, and even small humps and bumps can make it collapse. Therefore good care must be taken to see that all the possible pitfalls are avoided, and the investment is never put to waste or risk.
Here we have gathered the top 7 techniques to save money for business startup.
1. Make a flexible formal budget
Most business owners don’t understand the importance of writing down their own budget plans.
Creating a formal business budget is crucial before spending on marketing, utilities, office space, transport, salaries, communications and others.
Estimation of the range of costs you will have to bear will give you an exact cut route to move forward.
Whilst it’s essential to stick to the budget and make a saving wherever it is possible to invest back in the business.
2. Go for a mobile office
Businesses startups can do an excellent job on mobiles.
It’s not always prudent to spend money on office space and extravagant office utilities.
A mobile office can let you work with a small number of employees and also will give the freedom to work from home.
Resort to measures such as using free or economic software, communicating with the team daily and operating on the cloud.
This way, you can save a good amount of money. A mobile office can also give freedom for the employees and contractors to work from remote locations and cut on travel costs.
3. Work on your tax deductions
You can save money very effectively by using all the available tax deductibles for the startup.
In the UK, startups can claim R&D tax relief in which they can claim a significant amount of expenditure in research and development projects related to the startup.
Besides, Startups having lower than average amount of standard-rated expenditure can reduce their VAT liabilities under the flat rate VAT scheme.
There’s a list of tax deductions available for startups, to make use of all the legal tax deduction it is advisable to find the best accountant or a tax advisor.
4. Barter with other businesses
Especially in case of businesses, bartering might sound old-school, but it can still be effective.
If you need a product or service and have something of value to offer in return, this could be the best way to save money while making things done.
For instance, you can offer a marketing service to the companies which provide your business with accounting help.
5. Use open-source & cloud applications
There’s no need to purchase expensive office software when there are so many affordable and effective cloud-based solutions available.
These Open Source software applications are another money-saving option for small business startups.
Besides, using Open Source software means better security, better support, more control, and ever-increasing product quality due to a high level of market competition.
6. Buy used office equipment & furniture
Buying used office equipment and furniture will save you a significant amount of money.
7. Negotiate with suppliers
This is an important technique to save enough money.
While buying the services, software or products, never hesitate to negotiate with businesses to save on costs.
You must not underestimate a single pound that you can hope to save during a business startup.
With a little exploration, you’ll be surprised to come across businesses that are willing to give you services at subsidized rates to see that you turn their loyal customer.
Each pound saved is a life-giver to your business startup.
So, more focus on how successful your efforts and try to minimize your spending.
Because you’ve a long journey to make before your small business begins yielding expected results and till then the fuel (investment) you’ve got in the tank must help the game prolong.