If you think that starting a business is the most challenging task, you’re wrong. Staying afloat is what requires dedication and endurance. Based on many experts’ opinion, the changes you’ll survival increases the longer you remain in business, with half of UK companies folding within the first five years. If you manage to survive the first formative year, then you will likely be open for business for the following period. But, you shouldn’t let down your guard because you will meet obstacles now and then. The most significant mistake business owners make when starting a new company is neglecting to accurately calculate and budget for the costs. If you want to find out how to run a cost-effective business, then we have a couple of suggestions for you.
If you are still new on the market, then renting equipment can significantly reduce your costs. Rental services will not only enable you to have the most up-to-date equipment, it’s cheaper than buying new. This is very useful when it comes to the equipment don’t use every day, such as projectors and video conferencing technology. Another significant advantage is that you won’t be burdened with the costs of repair.
Small businesses often don’t require, or can’t afford, a large number of employees. In addition to your core staff, there are tasks that have to be performed but you probably don’t need them done every day. So, instead of hiring a lot of personnel, training them and paying them full-time salaries, you should consider taking advantage of the freelancer marketplace. There are popular websites you can use to find freelancers who have experience in the jobs and projects you need done. You pay an agreed hourly or per-project rate and they provide excellent work with a quick turnaround. Freelancers cover everything from basic data entry to high level programming and you can work with people from all around the globe, making this a much better way to source talent for those very specialized tasks and once-off projects.
Many small businesses often feel the need to rent huge offices space, thinking it will boost the productivity of their employees. While this may be true to a certain extent, this move can have a significantly negative impact on your budget, especially in the early years when you need to be agile and not locked into X amount of office space for X amount of years. But, there are more cost-effective alternatives which you can utilize. A lot of startups are choosing to work in London’s many and varied coworking spaces, which come fully furnished, serviced, wired and are available at affordable rates.
Remote working is another way to cut down your costs, and the creation of cloud-based services makes this task even more possible. In the last couple of years, flexible working is becoming more and more valued in business. Companies are encouraging employees to work from home, which can spike the productivity and job satisfaction and also save money on office space.