Find out how you can save money as a startup, learning tips about tax, office space, hiring and planning.
Entrepreneurship and self owned business aspirations seem to be run of the mill these days, as the world has changed to encourage each and every person to live their career dreams. This kind of career path does come with its risks though, and of course, many challenges.
Startups are at a high risk of failure, and one key reason is because of issues with finances. Money can quickly drain from a startup quickly rendering it another startup failure statistic. If you’re considering starting your own business, or have already taken the leap, these 5 tips will help keep your business bank balance looking healthy:
1. Build Your Workforce Slowly
Often, hiring staff too quickly can drain money quickly out of a business because suddenly there are lots of wages to pay which amounts to thousands of pounds a year. It certainly pays to build your workforce slowly if you do need staff and a good way to do this is to start by outsourcing work instead of hiring a person full time. So if you need jobs doing, reach out to websites that list freelancers who will do various tasks and jobs at an hourly rate, or at a rate for the work.
2. Use Self Storage For Physical Space
Physical space is another big drain on the budget of a startup. This is why so many startups fail making that leap from garage or home startup to renting out a warehouse or an office. Warehouse and office rental is expensive, especially if you’re close to a city. The costs can quickly cripple a business which leaves an issue if you desperately do need more space. Rather than take the big risk of taking on a hefty rental contact, consider cheap self storage. Cheap business self storage units will keep your items safe, give you somewhere to work from and there are tons of other benefits like a potential 24/7 reception to take deliveries, the ability to move to smaller or bigger units easily, and the lack of risk because you won’t be tied into a contract for a long period of time.
3. Hire A Good Accountant
Clearly you will want to operate in a legal way that is above board. However, that doesn’t mean you shouldn’t take advantage of tips and tricks that can save you money. Tax breaks for example are entirely legal and you are entitled to them. A good accountant can guide you the things you are entitled to deduct tax from so you do save as much money as possible.
4. Plan Ahead
If you don’t forecast your costs properly, you will be hit with unexpected bills and they may be so unexpected that they cripple your business. Startup finance is frail so it doesn’t take much to bring things to a halt. Planning a month ahead, six months ahead, 5 years ahead, will benefit the business. Every month you should be monitoring your finances and adapting your financial forecast accordingly.
5. Be Frugal
Every single penny counts as a startup and all the most famous entrepreneurs are known to still be frugal, even though there are billionaires. Know where every single penny of your money is going, and think about every expenditure to see if you can barter the price down, cut the cost or offset it.
Having an aware and proactive mindset when it comes to startup finance is an excellent approach to business, and although success is never guaranteed, you are increases your chances by thinking carefully at every big and small financial decision.