Any entrepreneur knows that starting a business that be expensive. There are so many costs that come with starting and running a business and it can all add up to be quite a lot to handle. However, there are ways to cut down costs on your lean startup or freelancing venture. It just takes a little know-how, creativity, and extra effort to reduce overhead at least a bit.
Cut Company Costs Creatively
Every dollar counts these days in a hyper-competitive global economy. Lowering your startup costs and operating expenses can give you the advantage needed to survive and thrive.
You can do so many things to ensure you make the most of your business while still earning optimal profits. Here are the top money saving hacks for you as an entrepreneur.
Top 6 Ways Entrepreneurs Can Save Money
1. Outsource Instead Of Employing
If you need certain tasks done but have no skillset among your employees, it makes sense for you to outsource temporarily instead of hiring another full-time worker. There are also online tools that you can use instead of hiring people. For example, new entrepreneurs can use a website editor to build your website on your own instead of hiring a web designer. You’ll be able to make a great looking site but it will cost less than a web designer would.
Outsourcing in other areas like getting consultants to help with PR instead of a full team of employees will go a long way to ensure you cut down on the money you spend. The one thing new entrepreneurs need to remember is the more employees you have, the more money you will have to spend consistently. And if you can't make payroll as a new entrepreneur, your ship is sunk.
2. Negotiate
If there is one skill you will need to have in business, it’s negotiating. You will have to negotiate with clients, employees, and vendors over everything. Do not settle for the first price you are offered if you can get a better deal. Always have a counteroffer, and you might be surprised how much money you will end up saving in the long run.
If you are renting a building, then it helps if you can negotiate for rent. Many people assume that the rent they are paying is cast in stone and cannot be changed, while the truth is far from it. You will never know unless you ask, so make sure you ask. Talk to your landlord and see what they have to say about cutting down on the rent money you pay. You will be surprised when you end up saving significant money on rent.
3. Get Sponsors
One of the best ways to build your company without spending a lot of money is to use sponsors for any campaigns or events you might have. Events help get the message out about your business, and can be very helpful. On the other hand, organizing a whole event is a costly affair, and if you are not careful, you will spend a lot of money on it. Bringing sponsors on board will go a long way to cut down on the cost of the whole event. All you have to do is ensure that the word gets out about your entrepreneurial venture.
4. Get New Ways To Get Things Done
Many businesses give up whenever they run low on cash, and this is why they close down so fast. To help with this, you need to stop thinking of your business as a cash cow. There are many areas you can save money on. For instance, if you are a marketing firm, you can offer a design company your services in exchange for free designs for your office space. Both of you get what you need, and none of you has spent a single cent. It might not work in all business sectors, but it can go a long way in getting you what you need without paying money for it.
5. Reduce Employee Expenses Instead Of Employees
Many businesses get stuck when they are faced with a shortage of cash. The first thing they think about is letting some employees go. While this might reduce the cost by some percentage, it will only work for a couple of months and your business could end up suffering in the long run. The best way to go about it is to cut down on the employee expenses in the office. For instance, you can cut down on office lunches and instead introduce bottomless coffee pots. The employees still feel taken care of, but you are saving money at the same time.
6. Review All Expenses
The biggest mistake you can make when running your business is not knowing how much you spend in the office. Ensure you sit down with the finance team and go through the companies expenses every so often. Doing so will help you get to a point where you know what areas use up a lot of money and what you can do to change that. It will go a long way in informing you how well you are doing as a business.
If you know your numbers and minimize your expenses, then your entrepreneurial venture has a much higher chance of succeeding!
Eliminate Excess Entrepreneurial Expenses
Running a business or being a freelancer does not have to be a hassle. With the tips listed above, you will be able to run a tight ship during your entrepreneurship journey. You will not just make money as an exceptional entrepreneur, but save some cash as well.
