Launching a new business certainly doesn’t come cheap, and every penny really does count during the startup stage. Creating a business budget is one thing; sticking to it is quite another. Running out of money is one of the biggest reasons that startups fail, so we’ve compiled a list of useful money saving tips to help you spend less without compromising your growth.
Marketing is a non-negotiable business expense, particularly during the launch phase. However, traditional methods of marketing and advertising can be expensive, so it’s worth investigating more cost-effective methods. Generating brand awareness doesn’t have to be expensive!
Content marketing, when done right, is a powerful way of generating new leads and converting them into paying customers, and it costs a fraction of traditional advertising. However, it can take a little time to gain traction so it’s wise to start as soon as possible.
Make sure that you show up daily across a range of social media channels that are popular with your ideal clients. You can even prepare your posts months in advance and use scheduling software to automatically upload them.
You should also endeavour to create a content-rich website by uploading a few blog posts per week. These don’t have to be industry-defining essays; simple and informative 300-500 word articles are perfect.
Video content tends to resonate well with internet users, too. Try going live a few times per week to answer audience FAQs, or creating YouTube videos. These don’t have to be Hollywood-worthy productions – all you need to do is show up and educate your audience.
Outreach marketing can also help to target a local audience. For example, you could teach a class in a nearby community centre, speak at an event or sponsor a charity fundraiser. This will position your business as a caring company at the heart of the local community and increase brand awareness.
Remote working can really help to boost your bottom line. A study by AirTasker found that employees are significantly more productive when working from home, putting in an average of 1.4 more days each month. Over the course of a year, this amounts to more than three extra weeks of work. At the same time, telecommuting cuts down on costs such as gas and electricity, and may even allow your business to relocate to a smaller and cheaper office premises. Talk about getting more for your money!
Hire an Accountant
It may sound counterintuitive, but a quality accountant will always save you more than their salary. As well as ensuring that your business is compliant and thus avoiding costly fines, a great accountant will use their extensive knowledge of tax deductions and incentives to see that you don’t pay a penny more than necessary. Furthermore, an accountant will function as a business partner and mentor, and use their acumen to help you make shrewd decisions about financing, business growth and spending.
These days, it’s often no longer necessary to invest in expensive hardware. There are many cloud-based software solutions out there available on an annual subscription which prevent you from having to fork out for in-house systems and maintenance. There are even some free data hosting and transfer systems out there if your business’ needs are still fairly basic.
Constantly forking out for expensive equipment and upgrades can be a real drain on your business bank account. If you find that your equipment requires a lot of maintenance or needs to be upgraded regularly, consider leasing rather than buying outright. This is a cost-effective solution that really helps with cash flow management, and there’s often the option to buy said equipment at the end of the lease if necessary.
Saving money for your small business doesn’t have to mean slashing costs and making huge sacrifices. Employing creative solutions and making strategic decisions are the best way to save money without inhibiting business growth. By being smart with your marketing, seeking the financial advice of an accountant and leveraging the latest technologies, you can save money and ensure that your startup stays afloat.