5 Tips To Save Money As A New Business

Starting out as a business can be tough and can be a huge financial hit initially. However, luckily there are a few simple ways you can save money and cut the costs of starting out. 

1. Negotiate terms with suppliers and landlords

When starting out, it can be easy to accept the terms that are given to you, especially if you lack market experience. However, it is always worth trying to negotiate better terms. Prices quoted by vendors or landlords does not necessarily need to be the final cost. 

In many cases, vendors are more interested in having regular business than they are in earning a specific value. This means that you are in a good position to negotiate better prices, be it phone contracts, office supplies, fabrics or even lease costs. There is no harm in trying and in the worst case scenario, the answer will be no. However, if they say yes you could save hundreds of pounds.

2. Outsource rather than employ

No business can function without employees; however, employee costs can quickly add up, with everything from office space, to salaries to employee insurance. 

It may be wise to keep your full-time team to an absolute minimum and choose instead to outsource any other work to independent contractors. 

This way, you will only pay for the work being done and will not need to cover any employee costs. When working with outsourced staff, you can usually negotiate a lower rate as well as working with people who are experts in their field.

3. Keep things remote

Not all businesses can function remotely; however, if it is a possibility to work remotely for your company, it can be a surefire way to save money. Keeping things virtual saves you the costs of office space and the associated operational costs. This way, you can focus on growing your business and producing work at a minimum cost. If you are unable to run your business fully remotely, you may be able to at least have some staff as remote workers and save some costs.

4. Be Smart with Your Cash flow

Funding an entire business yourself can be challenging, but having access to credit facilities or cash flow options where the bills are mounting can be very useful. You may start looking at business credit cards with a healthy credit limit or even some kind of low cost cash advances when you need it, just so that you do not feel the heat when needing to pay staff or suppliers.

It is common for new businesses to use their savings or get help from family or friends, but exploring other financial options can be very helpful too.

5. Look for potential rather than experience

Hiring highly experienced staff comes with a price tag. If you put out a job posting requesting a certain amount of experience, applicants will also have specific salary expectations that you may not be willing to meet. However, advertising for recent graduates will not only broaden your pool of prospective applicants, it will also allow you to scout out potential at a lower cost. Investing time into training recent graduates will be invaluable when it comes to saving your company money – they will only expect an entry-level salary and the right profile will be eager to learn and progress in your company.

Similarly, hiring interns to assist with marketing, social media or other company tasks can help to save the cost of hiring full-time employees. It means you can get the necessary work done for a fraction of the price and give interns valuable real-life experience.