Setting up a small business from scratch takes a lot more from your wallet than you may usually predict. One big reason behind this is that there are no sales or profits to make up for any of the resources you pitch in. As a result, small business aspirants might sometimes feel discouraged about the high bills, fees, and costs they have to pay before they even earn a penny.
However, once you’ve done the initial setup and have had your couple of first sales, you can streamline your work to cut down on costs and eventually get a faster ROI. Luckily, there are plenty of smart ways for small businesses to reduce costs.
Here’s a complete list of how you can plan smarter and get more accomplished in a lesser time:
The concept of large billboards and television advertisements is quite old, not to mention rather unnecessary. Consider in the total bill you’ll have to pay for these traditional methods. You can use newer and more effective ways of marketing, such as social media advertisements, email marketing, text message advertisements, influencer endorsements, and other forms of non-conventional digital marketing.
These types of marketing have a much larger reach. Other than this, the option to share and reblog a single marketing content makes it essentially free of cost!
Wondering how to get your business to stand up on its own feet? Sponsors and idea banks can help you out in executing your business plan! These are individuals and organizations that own large amounts of wealth and actively look for business ideas and plans to invest in them.
You can pitch to a sponsor, in which case you’ll explicitly add their name to your brand’s identity, or you can look for idea banks that lend seed money for startup ideas that impress them. A sponsor would be willing to spend as much as they like and keep a share of the profit in return. On the other hand, an idea bank will donate only a limited amount of seed money with zero commission but won’t like mentioning its identity in the process.
One major factor that adds to the total cost of your business expenses is the interest you have to pay back in case of any loan or installment. Besides accumulating over time, interest-based loans constantly drain you of the financial resources that you would otherwise invest in smarter ways to grow your business.
Collaterals, on the other hand, are relatively safer. Obviously, you have a debt to pay off, but there’s no extra cost on the debt itself. In fact, collaterals often keep a business motivated to pay the debt as soon as they can by increasing their overall efficiency.
Telecommuting refers to employees and staff that stay at home and communicate through virtual means such as videoconferencing, cloud or messaging. Also known as remote work, telecommuting is a smart way to keep in-person expenses to a minimum.
For example, if your business can’t afford a large building with full-fledged facilities, you can hire WFH employees instead. They’ll be using their own electricity, water, gas, and furniture while they work from their remote locations. This is going to help you cut down on transport management, maintenance, and so on.
When you have tablets and Styluses, why still go for papers and pens? The former is a one-time investment, while the latter costs a lot, especially when you factor in all the daily wastage. Brainstorming on a piece of paper can indeed trigger your creativity, but you can also achieve that creativity using your smartphone or laptop.
In short, replacing your workplace equipment with greener technology majorly helps you cut down on quite a few traditional expenses.
But what about billing receipts? Well, e-wallets such as payit have your back in this regard it offers cashless, paperless transactions that have a secure record in their digital databases!
As a small business, you’re probably getting only a handful of orders each month. This means that you probably don’t need a full in-house staff for eight hours, five days a week. Why? Because there isn’t much work, and also because keeping an in-house staff with little to no work can become expensive. You have to keep spending on the utilities they use, not to mention the full-time salaries you pay for lesser work!
Try to avoid all that trouble by outsourcing your non-core tasks. Content designing, marketing, credit handling, and many other jobs can easily be allotted to contract-based employees, who you can pay hourly, daily, or weekly. As for the billing part, you can have your account keepers master the PayIt app to get a large chunk of the process automated with little additional cost.
Budgeting is an uphill battle when you’re starting out fresh. A poor budgeting plan can deliver a powerful blow to your whole business setup and even cause additional damage if there are still debts and loans and salaries to pay off.
The best way around this is obviously rigorous budget planning, as well as trial budgets to figure out your best budgeting strategies. How often do you buy a certain supply? How long does it take before your inventory needs a restock? What are the best shopping seasons to purchase your supplies on a budget? And most importantly, how can you ensure that everyone sticks to the budget you’ve made?
If you ever think about how you can do it later or take your business lightly, you’ll probably struggle with managing your time during the rest of your journey. Time management is an important skill that develops with practice. On the contrary, a company with a poor focus on time management can find it harder to execute and complete tasks on time, resulting in the loss of clients.
Besides, wasting time during office hours or not following a proper schedule also means you’re wasting resources such as electricity, internet, power, water, and the property itself. Moreover, you’re not working to earn anything back, which means all you’re doing is flushing all that investment down the toilet.
Therefore, it’s highly crucial that you and all your employees master the art of time management so that you can get more accomplished in lesser time, spend less human and material comfort resources, and get an ROI quicker than ever!
Even though growing your business into a multi-sector brand sounds like a worthwhile goal, you always have to start out small. You may take a few risks regarding budgeting or quality testing or supplier choices, but you also need to feel confident about the end product. Since you most probably do not have enough resources to invest in experimenting with other niches or industries, you’ll play it the safest if you choose a specific line of products at the beginning.
This will also help you perfect the expenses that incur for specific material supplies, and you’ll be able to focus on product development, too. As a result, you’ll be able to cut down on production expenses by focusing on only a specific area. And once you have that unbeatable product on the market, it’ll rake in all the bucks you need to develop further products, even in different niches!
Landlines, software subscriptions, internet packages, utility bills, and maintenance costs are another humongous load on a business’s budget. However, you can cut down on these expenses by analyzing which ones are unnecessary and using our e-wallet app. to pay them all in once. For instance, a landline is rarely useful but still requires regular payment.
Similarly, large and fully equipped HVAC systems are also rather expensive for small businesses. If you have full-time, in-house staff, you can try a smart thermostat or any other alternative to reduce these costs, too.
Every dollar makes a difference when it comes to establishing a business. While every expense may seem necessary and inevitable when you ask your business gurus, you can actually use this ten-point formula to find a cheaper alternative to large expenses without ever compromising on the quality!