Whatever sector you operate in, some small business challenges are unavoidable – and lack of finances is usually one of them. Launching a new business puts you in a unique position. You are trying to grow, which requires investment into resources, but this comes before you have a steady flow of revenue to rely on. It’s a catch 22, and one which has landed many entrepreneurs in financial hot water before. In fact, cash flow issues are recognised as one of the major reasons that many fledgling businesses fail within their first year. This all means that you need to be on top of your financial situation constantly – and you need to become quite clever about the ways in which you spend money and save it. Luckily, there are some areas where you can easily save on costs and trim your business expenditure – so try out a few of these tricks and see if you can benefit.
Use A Marketing Agency
Getting your name out there and known by customers is absolutely key to pulling in the customers you need to create sustainable revenue. But if you aren’t a marketing expert, you can easily end up wasting large amounts of budget on the wrong channels, or targeting the wrong audience. Hiring a multi-channel marketing agency is a good way forward, asking them to concentrate on targeting digital marketing which can really drive leads. An agency is highly accountable and well aware of best practice, working across a large range of industries. It requires a little investment, but generally you’ll be in a better financial situation because of it.
Switch To The Cloud
If your software and systems aren’t in the cloud, this should be your next port of call. Instead of paying out huge amounts up front for complex software packages, most of these are delivered via monthly subscription, making them a lot more flexible for variable small business finances. Cloud Computing is also generally more secure than running your own servers, and security updates are constant and seamless. It also makes sure that you can access data and files from anywhere with a Wifi connection, giving you much more operational efficiency too.
Don’t Pay For Office Space
If all your files are digital, then it also means that you don’t need to be tethered to the overheads associated with maintaining an office. There are lots of shared office space facilities available all over, giving you the freedom to access facilities like meeting rooms, cafes, reception services and a business address without being tied into large rental payments for a space you may not even use all the time. Local coworking spaces generally offer great value to small businesses. Some are industry specific and may even come with valuable contacts in support services such as PR or accounting.
Think Preloved For Equipment
Another great way to save on costs when you’re just starting out is to buy office furniture and IT equipment secondhand. This can save you a fortune on brand new items, and you may even be able to access a higher specification than you would have purchasing from new. Many large corporations upgrade equipment regularly on a cycle, whether or not it’s past its best, so be smart about it and you can get some real bargains that will reduce costs – and you can always upgrade later when cash flow improves.