Keep The Budget Tight! Keep Costs Down At Your New Business Without Sacrificing The Integrity Of The Work Being Done
Keeping costs down at a new business is important for various reasons whether the business started using personal savings or investor money. The one aspect to watch out for when cutting costs is decreasing the quality/service being provided. The consumer is as educated as ever with nearly everyone taking a look at online reviews before going to a restaurant or hiring a contractor. The one detail to understand is that not all costs can be lowered so targeting those that can should be done. Quite a bit of time can be wasted trying to drop costs on something or negotiate with a vendor to drop costs when money could easily be saved on labor. The following are tips to keep costs down at your new company while maintaining the integrity of the work being produced.
Renting equipment can free up cash flow and many times you can purchase the rental for a discounted price after using it. A company like Red-D-Arc allows people to sell, rent, or even buy as it states on their site “Keep your fleet up to date and leave the maintenance to us. Get a Quote on welder rental rates using our easy online quoting system. We have options for long term rentals, leasing and purchase of welding equipment.” Finding a welder rental in Houston or a computer rental shop in San Francisco can be the perfect opportunity to drive costs down. This does not mean that you cannot purchase this equipment later but for now keeping cash flow high by renting equipment can be a very intelligent business move.
Companies purchasing used equipment is a popular option to help save money. Most of the time used equipment with a warranty works like new equipment so no quality will be sacrificed in the work being done. Finding a reputable seller is going to take work as the last thing anyone wants is to purchase equipment that works for a week then completely breaks. Buying this equipment from another company in the industry can be a great way to create a relationship as well as ensure the equipment works as it should. No company is going to want to be blacklisted for trying to rip off another in the industry. Not only is this bad for the brand but it can lead to lawsuits being filed.
Outsource Marketing To Freelancers
The marketing efforts of a new company being outsourced to freelancers can save immense amounts of money. Hiring a marketing team in-house does not mean results will be garnered. With freelancers, there are reviews on freelancer platforms that can help a company figure out which freelancers would be quality additions to the marketing effort. For those business owners that are great writers they can take on part of the content marketing approach. Freelancers that have worked for years in digital marketing have existing relationships that can be leveraged to help produce quick results. Hiring a writer, designer, outreach professional, PPC, and SEO consultant can round out the team. You only have to use them as needed so this will save money when compared to an in-house team that needs to be paid regardless of how much work they have.
Allow Remote Employee Where Possible To Reduce Need For Office Space
Remote employees are growing through a variety of industries with technology making it possible to work from another country without missing a beat. Allowing employees in roles that do not require them to be in the office to work from home will reduce the need for office space. The smaller the space the less rent will be which is a fixed cost that can help the bottom line at the end of the year immensely. For companies that are totally based online allowing everyone to work remotely eliminates quite a few costs. The fact that employees can work from anywhere can be very attractive to top talent in an industry. The ability to live in a country with a very low cost of living allows an employee to live like royalty while still saving more money than they would domestically.
Hire Slowly And Fire Quickly
Hiring only as the company needs new employees is imperative as over hiring can dry up cash flow. This will help reduce employee turnover as well as seeing employees constantly leaving can do quite a number of office morale. Firing quickly has to be done as allowing an employee a few more months to “get it together” is a waste. Most employees that are not doing well within the first few months or never have shown promise need to be let go. Follow the appropriate processes for this but make sure all employees know that a subpar job will not be tolerated.
The costs at a new business being cut can help in different areas like adding to marketing budget or the annual profit margin. Take the time to assess where you can start saving money at your business today!