Starting a new business allows you to follow your passions and be your own boss. Unfortunately, it also comes with a lot of stress, especially regarding expenses. A recent survey showed that about 55% of startups spent the most money on operating costs in their first three months. Operating costs include office supplies, travel expenses, legal and accounting fees, and sales and marketing costs. These expenses can deeply affect your budget, so finding ways to reduce them is important. Here are some ways to reduce business operational costs during your startup phase.
Take advantage of social media
As a startup, you may feel you need to invest a lot in promoting your business to gain target market visibility. However, marketing and advertising costs can add up pretty quickly. In truth, you don’t need to invest in above-the-line promotions, TV ads, or print media adverts. You can use the power of social media to target more local or niche markets cost-effectively. Social media platforms allow you to promote events, sales, and product lunches for a fraction of what you may have to pay with traditional advertising. The most important thing is to identify the right social media platforms and have a well-thought-out strategy.
Use the right software and online tools
From bookkeeping responsibilities to simple front desk tasks, you can find several software options and online tools you can use instead of employing or paying professionals. Most of these online tools or software are designed to make various administrative tasks less stressful and time-consuming.
The type of online tools you should use will depend on your administrative needs and the nature of your business. These tools can help you save a considerable amount of money in the first few months, as you’ll eliminate labour costs. Of course, as your business grows and profits flood in, you can consider hiring professionals.
Work remotely
It feels nice to have your own office space when running a startup. However, that’s an additional cost you don’t need initially. You’ll have to pay rent, energy and water bills, maintenance and repair costs, etc. Renting for commercial purposes is very expensive, especially in central business districts. You can avoid these expenses by working remotely during operations for the first few months. You can choose to create a home office or work from your garage. You can also consider working from coworker spaces, a library, or a cafe if you do most of your work online.
Cut down on transportation expenses
With fuel prices increasing recently, you may want to cut your transportation expenses. That’s particularly important if your new business requires you to move products or personnel around a lot. Start by finding alternative routes to reduce fuel consumption. Additionally, ensure that your vehicle gets regular inspections while you adopt fuel-efficient driving techniques. You can also consider using cheap car rental services if you need to move around quickly. This way, you can reduce the burden on your vehicle. For example, if you operate in Perth, you can pick up a hire car in Perth CBD.
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