This is a guest post for the MELD Coworking blog written by Emma Jones.
Some businesses take out loans, others have grants, and others start on a shoestring budget. Whatever your situation may be, keeping the costs down for new businesses is a priority for most.
In this article, we will take a look at some of the best ways you can save money when starting your business.
1) Cut back on office costs
As a business owner, your premises are going to be one of your biggest expenses so by cutting your costs as early as possible you are going to have more of a budget left for other business activities.
One solution is to work from home as your expenses are next to nothing; however, this can put potential clients off from working with you as it doesn’t look as professional as other companies. The next best thing would be to use a coworking space.
A coworking space is cheaper than renting an entire office and looks more professional than working from home. Coworking spaces can also grow with you. As your business grows, you can add more desks and worktops to accommodate your new staff. Growing this way can save you money as you don’t have to relocate when your team grows.
2) Use freelancers where possible
Employing full-time staff can be a huge expense and responsibility and as a new business you may not have the skills to manage a team yet or you may not want to take on the responsibility for having to pay a full-time wage.
In this case, using a freelancer can help as you only pay them when needed and it takes some of the pressure off you from having to make a certain income every month to keep your staff paid.
You can find freelancers on websites such as Upwork.com or Freelancer.com just be sure to check out the freelancer’s feedback and past work to see if it is up to your standard.
3) Use storage where necessary
If you are running a business that requires you to handle stock you may want to consider using a storage unit rather than renting a warehouse or keeping it all at home.
When renting a warehouse you may not need all of the space right away and this will waste your budget. A storage unit on the other hand can be used until you fill it, and when you fill it you can rent another one. Storage units are cheap to rent and are an excellent choice for small business owners who run eCommerce stores.
Running a business from home with stock may seem like a good idea to cut costs, but what you often find is that your stock soon takes over your home. With that, you can lose and damage it which can lead to unhappy customers if you can’t fulfill their orders.
4) Use inbound marketing
You can use ads when you start to promote your business but ads can become expensive fast and if you don’t know what you are doing you can lose money quickly.
A cheaper method of marketing is something called inbound marketing. Inbound marketing is when a business creates its own content and with that brings in leads to your business.
You can think of inbound marketing as content on your blog, and when you create the content that your potential customers want to know about it gets you out in front of them and causes them to consider you.
For example, imagine you were looking for someone to install a pool in your garden, but you had no idea of how the process works or even if a pool could fit in your garden.
In this instance, you could search Google for something along the lines of “how big does a garden have to be to fit a pool” and if a company had written an article on this you would read it and then look at the other content on their website.
Once you consume that company’s content you may then consider them to install a pool for you because they seem knowledgeable and have helped you understand the process. That is what inbound marketing is.
For your company, you will need to find out your customer’s common problems or frequently asked questions and then create content around those questions.
Inbound marketing is free, all it takes is your time and if you are building a business with no budget it is a great way of generating leads and sales for your company.
About the Author
Emma Jones is the head of marketing at Pink Storage. A company that provides storage solutions for individuals and businesses in the UK.