During that initial, excitement-filled process of starting your business, it can become easy to get lost in the moment.
You’re buying one product for “x”, selling it for “y”, and making the profit between the two figures. It’s simple, right?
Suffice to say, there’s far more to it than that. A whole host of costs can enter the picture and through today, we’ll talk through some of the ways you can cut some of them as your new business attempts to make its first profits.
Do you need an office?
In today’s day and age, this question is more relevant than ever before. Sure, having an office for your company can add an aura of professionalism, but it also creates a significant expense.
In some cases, you won’t have an option. After all, some industries require people to be in the building, or at least need a base for client visits.
However, if you’re not involved in such an industry, think long and hard about this decision. Generally speaking, you’ll be tying your company into a long-term rental agreement – and this can be a huge commitment for the small business which is yet to turn a profit.
Let’s not also forget that this decision can have umpteen knock-on effects. For example, your public liability costs will change, as will the total cost for utilities etc. Of course, these won’t be eradicated if you turn to the remote option, but they could be lower.
Do you need to hire just yet?
The hiring process is a tricky one for any business. After all, you want to be in a position where you’re making sales and generating revenue, but you also need to have enough staff to make this happen.
In some cases, it can be worthwhile to wait a little while before hiring your first employee. During this time, you can focus on the day-to-day running of the business, and you can also use this opportunity to get a feel for the specific skillsets which will be required further down the line.
Outsourcing temporary workers can be a fantastic way to get around this issue. If you need someone to do a particular job, but you’re not in a position to hire a full-time member of staff, then you can simply outsource this work to a third party. This is an option which has grown in popularity over the years, and can provide you a happy medium during those early days.
Do you need to buy new?
We’re all guilty of it. When we start a new business, we want everything to be new and shiny. We want the best possible products, the best possible office furniture and the best possible computers.
However, these purchases come at a cost – and in some cases, it can be a significant one.
In reality, you don’t need the newest products on the market. Just because a new iPhone has been released, it doesn’t mean that you need to go out and buy it. The same can be said for office furniture, computers, and any other equipment which your business might need.