Saving money is an important part of life for every business owner. But, as a new business owner to a small start-up? Counting pennies and looking after pounds is crucial. Cash flow problems are notorious for new ventures, especially in the first two years. So, how can you save money as a new business and ensure longevity and profitability?
Be reluctant who you hire
OK, so you need a kick ass workforce to help you realize your dreams, but you also need to make the right appointments in your business. When it comes to hiring, be savvy. A virtual assistant can be as good as the real thing in the early days, and this can be said for your payroll ‘department’ too. Look at virtual ways that you can replace people, for the short term and in the early days, so that you don’t have to pay out a significant sum of cash in wages. Once you’re more established, then get bums on seats.
There’s an app for that
Have a look at the full range of business apps that you can get hold of; accountancy, marketing tools, scheduling and appointments and so on and so forth. Apps are a cost-effective way of making sure that your business looks bigger from the outside. And, you can stay right on track with all of your operational duties.
Never give credit!
The golden rule of business (and life) is that you never lend what you can’t afford to lose, and there is never a truer adage than that. While bigger, more established organizations may have large credit lines for their existing customers, this is not something that you can consider in the early days. Always make sure that goods are paid for with cash and invoice accordingly. It’s the only way to save yourself financial heartache in the future.
Networking: it’s who you know not what you know
Who said there is no such thing as a free lunch? Well, many networking events are exactly that. Make sure that you are heading to the right events with the right people. Use networking events to meet the right people in your industry and learn from them. Use them as a free consultancy for all things within your sector. Of course, you will need to give something in return; perhaps a discount when they use your services? Think about how you can leverage relationships and learn more about your sector in the process.
You don’t need everything right now
“If in doubt, go without” seems somewhat apt for the entrepreneur. While it’s tempting to go for the shiny new office and the top of the range equipment, it’s not always feasible to do this. Afterall, you don’t want to go broke because you bought an all singing and all dancing printer. It’s time to put your sensible hat on. Do you need it right now? Will it add value to your business or your customers? If not, put it on the backburner for a while. Apply some common sense to your business purchases.