For any new business, balancing the books is arguably the biggest concern. To get going, the startup will likely have received a large injection of cash. However, this money is quickly spent on the likes of equipment, stock, premises, and so on. Once this initial income is gone, it is up to the business to generate enough sales to cover recurring costs.
This is easier said than done. Not only will a startup have understandable teething problems, but it can also be tricky to get the ball rolling in terms of sales. This is when expenses play an important part. If they’re too high, a new company could be fighting a losing battle before it even gets going. There’s a reason why 30% of new outlets are out of business within two years of opening.
To help combat this concern, it’s important to try and cut down on costs. Below are four useful methods for reducing your company’s expenses:
Remote work
There are several reasons why remote work is growing in popularity. From an employee perspective, it delivers a greater degree of flexibility where they can work at a time and place that best suits them. Statistics also suggest workers are more productive when working outside of the standard office setting.
As an employer, it can save thousands a month for one simple reason: you don’t need fixed premises. This means your company also wouldn’t need to cover utilities and equipment such as computers.
Use time-saving software
There are many different software options on the market, which can help to reduce the time spent on certain tasks massively. By saving time, this boosts productivity levels as it gives you – and your employees – the freedom to focus on more important aspects of your company.
One such software pick is a digital experience platform. This is a great tool for connecting many different digital platforms together, allowing you to sync and manage content across all these platforms effortlessly. For more information, Industry experts The CX Lead have listed the ten best digital experience platform options available today.
Attract the right staff
Getting the right employees on-board could be the difference between your business succeeding or failing. As a result, you will want to go out of your way to attract the best talent.
However, how can this be done when trying to cut costs? Surely the best talents will be seeking the biggest wage they can find? While this can be true, there are other ways to compensate new hires. For instance, you could put together an attractive benefits package with extended vacation days and flexible working hours.
Frugal marketing
Marketing can often burn a hole through the budget for a new business. With that said, promoting your brand doesn’t have to be expensive at all – if you’re creative.
In fact, you could get by without spending a dime if you know how to effectively work social media. Setting up a Twitter or Instagram profile is free, and it instantly drops you among your target market. Although if you want to attract potential customers, you will need to produce engaging content that attracts their attention.
