Negosentro.com | 5 Ways to Cut Your Start-Up Costs | Starting your own business can be a great way to take control of your life, work in an industry you love, and transform your finances. However, launching a start-up can require investment, which means you’ll need financial backing to get things underway. If you want to start your career as an entrepreneur now, you may want to look for budget-friendly ways to kick-start your operations. For inspiration, take a look at these five ways you can cut your start-up costs now:
1. Hire Equipment
No matter what industry you operate in, you’re going to require some type of equipment. Whether it’s sector-specific niche machinery or a standard laptop, you don’t have to buy the equipment you need outright.
Renting equipment or machinery can be an effective way to access the resources you need on a small budget. As well as giving you access to the tools you need, renting equipment can allow you to try out different models to find the ones that work best for your enterprise. In addition to saving money, you’ll be able to gain first-hand experience so that you’re able to invest in the right equipment if you do decide to buy at a later date.
2. Share Office Space
For many businesses, leasing office space is one of their biggest expenses. Although you’ll need somewhere to work, you don’t have to spend a fortune to secure a professional environment. Most major cities around the world have a good selection of available office space to rent (this coworking office space in the UK city of Bristolis a good example of what you can get for a very reasonable budget).What’s more – establishing your start-up in a coworking space gives you a great opportunity to meet other entrepreneurs and build a professional network.
Many dedicated office spaces provide additional functions and features, such as a telephone answering service, access to equipment, like printers, and break rooms. With coworking, you can access a fully equipped office at a fraction of the usual price, which is a great way to cut your costs.
3. Work with Freelancers
If you’re thinking about hiring employees to work for your start-up, why not consider working with freelancers and subcontractors instead? The recruitment process can be time-consuming and costly, while a monthly wage bill will make a big dent in your turnover. Furthermore, a start-up business may not generate enough work to keep full or part-time employees busy.
When you hire a freelancer, however, you can access the professional expertise you need on an ad hoc basis. This gives you the flexibility to access help when you need it, without paying wages on an on-going basis. Additionally, hiring subcontractors and freelancers means you won’t be responsible for handling their tax contributions or National Insurance payments, which saves you time and hassle.
4. Use Free Tools
As a new business owner, you’ll probably be using a range of tools that you haven’t tried before. Software, like time tracking platforms, accounting programs and budget planners, can be invaluable to small business owners, for example. Before you buy a license or program, however, check whether a free version of the software is available.
Many major software developers make their programs available for free to some users. Depending on the size of your start-up, you may be eligible to use a free version of the software. Similarly, it’s usually possible to access a free trial before paying for software. This enables you to make sure the software is a good fit for your business before you part with your cash.
5. Reduce Your Tax Liability
Your tax contributions can reduce your profitability by a significant amount, but tax planning can help you to minimise your tax liability. Choosing to form a limited company or operate as a sole trader will affect what tax rates you’re subject to, for example. Additionally, the investments you choose to make and the expenses you incur can reduce your tax liability, depending on how you make them and when your outgoings occur.
Getting professional advice and reducing your tax liability can be a savvy way to reduce your costs. By doing so, you can generate higher profits and reinvest more back into your business.
Growing Your Start-Up
Launching a start-up is an exciting time, particularly if you’ve been planning your business for months or years. With the launch phase well underway, you should already be thinking about potential growth strategies. With the right research and planning, you can successfully launch your business sooner than you think, which means you’ll be growing your enterprise before you know it.