When you’re running a business, it’s important to keep your costs down without compromising your company’s growth. For startups, every cent counts, especially when you consider the different expenses a startup is faced with. Below are 6 cool tips to help you save your business money.
- Get a Business Credit Card
A credit card is perhaps the best way to save your business money. Why? Firstly, having a business credit card allows you to establish a line of credit. For most startups, it’s difficult to get a line of credit but if you have a business credit card and you pay it on time, your business will have a monthly line of credit.
Secondly, a business credit card allows for higher credit limits than personal credit cards. This is because banks know that businesses, especially startups, need to spend a lot more.
Thirdly, having a business credit card allows you to keep your business expenses separate from your personal expenses, making them easier to track, which is very important for any business.
Fourthly, you’ll be able to provide employees with employee cards so they can use it for any business-related expenses. This is particularly useful if your business requires you to wine and dine clients etc.
Lastly but not least, business credit cards offer many different rewards and perks. The trick is choosing the business credit card that offers the rewards you can actually take advantage of.
- Make your office Virtual
Office space can definitely wait until you have a bigger capital to play with. In the meantime, you can save your business money by making your office virtual. All you and your employees need is a computer and the right piece of software to keep you all connected. Once your business takes off, you’ll be able to move into your own offices.
- Purchase Second-hand Equipment
In the early days of a business, equipment is perhaps the highest expense. However, you can easily cut corners by purchasing second-hand or used equipment. When you purchase equipment that’s already been used, you need to make sure it’s still in working condition. Government auctions are the best place to find working second-hand equipment, but also keep an eye out for closing startups.
- Establish Partnerships with Suppliers
Good suppliers are the bloodline of a business. Choosing yours will require research and it’s also recommended you compare prices so you can get a good deal from the start. Once you find the right suppliers for you, consider establishing partnerships with them. This will increase the possibility of a line of credit, making your life a bit easier.
- Outsource some of the Work
Every startup needs employees, but if you want to save your business money in the beginning, it’s a good idea to outsource some of the work. Outsourcing consists in paying someone else, a freelancer or an organization, to complete tasks for you. This is cheaper than an employee and more effective. Freelance websites such as Freelancer.com and Fiverr can be a great source of cheap Freelancers.
- Keep track of your Cash Flow
If you make a habit of tracking your cash flow, you’ll be able to save business money by avoiding late fees or missing bill payments. Cash flow is the most important thing; if you run out of it, your business will go under. So, by tracking your cash flow, you’ll be able to see where your money’s going.
If you apply all these tips together, you’ll be able to save your business money effectively so your startup has a better fighting chance on the market!