The business scene is ruthless in this day and age. The 21st century has proven to be the perfect time for startup companies and young entrepreneurs. With all the platforms readily available, easier-than-ever opportunity for networking, and a large community of like-minded people, this is as fruitful as it’s going to get.
But, there are two sides to a coin, and the more available the tools are, the easier it is to get lost. The market is tougher, and the competition is stronger. You can lose money as quickly as you invested it, and in order to stay afloat, first and foremost – learn to think economically. In this article, we explore some of the most common overlooked points that can actually save you a lot of money until your new company is on its feet, and even long after that!
1. Office Space
When you’re a young company, the choice of your office space is crucial. If the business can start off with all the employees working remotely – try giving that a chance. The expenses on transportation and rent will be nonexistent. However, if there is a need for an office, make sure to choose wisely.
Steer clear from the dead-center of the city, especially if you’re situated in the capital. The rates for the rent can get very high, which is a cost you probably cannot afford right now. The last thing your employees need is to move into an office only to move out in a few months time because the revenue was not enough to cover for the cost of the workspace.
2. Buy Used Equipment
Aside from the aforementioned office space, one other big aspect in which you can save is in the office supplies and machines. Say an office is a necessity for your company, and you managed to find a space that rents at a low price. The economic thinking doesn’t end there. Now you can start saving on the details.
When the company is at its very beginning, there is no need for the top notch copiers, or latest fax machines, or state-of-the-art computers. See if your employees can bring their own laptops, for starters, order used machines on eBay, or at auctions. The differences in performance are barely noticeable, and your company’s funds won’t suffer as much.
3. Invest In SEO
Advertising is everything when you’re a new business. It determines whether you make it or break it. The most common mistake is to go for paid advertising online. By the time you earn a base of customers, you will have spent hundreds of thousands or even millions of dollars, just to have your company’s name on Google or Facebook.
To really see that much-desired return of investment as quickly as possible, hire an SEO expert. Link building, on and off page SEO are the crucial tricks to getting higher visibility for far less money.
4. Group Purchasing Organizations
Group purchasing organizations allow you to make contracts with bigger supplying businesses like Fed Ex, or Staples, which ensures that you and your employees are provided with their services for a certain discount. This means that some of the expenses your company could have undergone, had you contacted each business individually, will now be slashed by a significant percentage.
What’s even better, becoming a member of a GPO is usually free of charge, or in some cases has small administrative fees. The contracts with the suppliers are tailored to every individual company’s needs, so down the line, it is a win-win situation for both parties.
The path to success for a young entrepreneur is long and difficult. That doesn’t, however, mean that you have to approach it with fear. Many great business owners have already paved the way, and it is up to you to take it. The devil is in the details, as they say, and so the secret to a solid, well-developed company, is in the numerous little tricks. Save where you can, whenever you can. Buy smart, invest even smarter, and don’t be afraid to take calculated risks.