If you haven’t read the statistics, life as a new entrepreneur can be almightily tough. Particularly in the current economic climate, it’s harder than ever before for businesses to get up off the ground.
Bearing this in mind, cost-cutting (yes, before you even get going) can be essential to success. Of course, as you’re starting out, it can be difficult to understand what costs you can cut without hindering the performance of your business.
With that, we’ve penned today’s article as we look at some potential cost-cutting ideas for you to mull over.
Take advantage of the growing freelance economy
One of the great things about the internet is that it’s opened up a world of freelancers, all of whom can provide you with services without you having to commit to the costs of hiring someone full-time.
From designers and developers to copywriters and social media experts, freelancers can do just about anything – and often at a fraction of the cost of a full-time employee. Don’t forget that the salary is just the tip of the iceberg for those full-time hires.
Use free (or low-cost) marketing channels
There are plenty of marketing channels that won’t cost you the earth. Social media, for example, is a great way to reach new customers and promote your business, and it won’t cost you a penny (unless you decide to pay for some ads). Other low-cost marketing channels include email marketing, PR and content marketing.
Don’t fall into the famous new business trap of thinking that you should be splashing the cash with glossy and expensive marketing avenues.
Get creative with your office space
If you’re starting on your own, you might not need a huge office space – in fact, you might not need an office space at all.
Plenty of people now work from home, and if you don’t need to meet with clients face-to-face, then there’s no reason why you can’t do the same. Let’s not forget that the knock-on effect of this decision is that your insurance and other indirect costs can also come crashing down.
Use open-source (or free) software
There’s no need to spend a fortune on software when free (or low-cost) alternatives exist.
For example, if you’re starting a blog, you can use WordPress – which is free. If you need an office suite, you can use Google Docs – which is also free. And, if you need a CRM system, you can use Zoho CRM – which is, again, free. The list can go on.
Cut down on unnecessary expenses
This one might seem obvious, but the little expenses can often add up and soon eat into your profits.
So, take a close look at your business and see if there are any areas where you can cut back – do you really need that fancy coffee machine, or could you get by with a less expensive one? Do you need to subscribe to that expensive magazine, or could you get by reading it online?
Again, the list can go on.