The recession has meant change for a lot of people. Redundancies and unemployment have been rife and caused many to rethink and change their career path. However some of this change has been for the best, with some people deciding to become their own boss. Many people believe you need a large amount of capital to set up your business but that’s not always the case, it just needs to be spent wisely. Here are a few tips to help you save money when starting your new business venture from the kitchen table and beyond.
Saving Money with a New Business
Avoid Initial Overheads
You probably don’t need office space straight away so think about working from home to start with. You won’t need to commute to work, can stay in your pyjamas all day and don’t have to worry about spending money on day care. However if your short on space or your business is expanding you could think about co working. It’s a great way to have some extra space whilst meeting new people. When your business starts expanding even further, you could buy some office space then sublet it out to other businesses. Alternatively you could opt for industrial space rather than commercial office space as the rent is a lot cheaper.
For your office go for laptops as these save up to 90% of energy compared to a desktop pc. Also check out Voip which is a phone service which uses the internet. Many small businesses are opting for this as it reduces telecom costs by 60%. It sounds bad but you can capitalise on other businesses that are failing and buy their used office equipment. It’ll be sold at a fraction of the new retail price.
Similarly if you’re not an office based business but are selling goods online and require warehouse and storage space, look at used storage solutions and second hand pallet racking. There are companies that specialise in providing these cost effective warehouse fixtures and shelving for a fraction of the price.
Depending on your company you could hire an intern. College graduates are crying out for valid work experience to utilise their skills and increase employability. A lot of graduates have fresh, innovative ideas and some are willing to work for free, to build up their experience and portfolio. Either way it’s a win win situation.
Get the family involved. If you have anyone currently out of work or children looking for some extra pocket money, ask them to help out with some tasks such as leaflet distribution to get your name out there.
Partner up with other entrepreneurs. If you need some accountancy doing or some marketing, look for small start up companies which you could use. You could come to an arrangement by offering your services for free or a discounted cost and vice versa, to try and get you both up and running.
A lot of advertising and marketing can be free or at a low cost when you’re starting up.
Word of mouth is powerful. Network and get yourself out there. Tell friends and family about your venture to see if they can help get you some business referrals.
Know your clients – Be a guest speaker. Find out who your clients are and offer to speak at a charity event, gala, or exhibition etc. Offer free sample products, do demonstrations or provide discount vouchers.
Start updating your online visibility. Create blogs which feature on relevant sites or create your own blogging site and become an authority in your area. You could also look at creating some business pages on social media sites, which are a great way of interacting with people in real time. In addition you could create a website and ask your clients to write testimonials of your great service.
Make your own business cards. As your business is new and developing there is no point in investing time and money getting them done professionally because if your business is changing and evolving, you’ll only change your card a few months down the line.
Look at “piggybacking”. Put leaflets, newsletters, vouchers etc into other marketing material such as letters, invoicing or statements.