In this article, we will give you 7 tips to reduce expenses in the venture. Lowering expenses when starting a business can make the difference between success and failure.
Do you have little money to start an enterprise?
Many times, people do not dare to start a business because they think they need a lot of money. For them, this article will also be very helpful, they will learn how much you can save by applying the following seven tips.
Here we write details to reduce expenses in entrepreneurship
1. Reduce local expenses:
The location will always be one of the most significant expenses in an enterprise, for this reason, it is the first point we address.
Our advice is that you consider starting your business at home. This applies for example for fast food businesses. You do not need to rent a place; In the beginning, you can start selling (hamburgers, hot dogs, empanadas, natural juices) from the front yard of your home.
You want to start a technology business. Remember that companies like Apple, and Facebook, were born in a garage and in a room.
If your business requires an office, consider sharing a space with other entrepreneurs, that is, they rent a large space between them, and divide it with modules, in this way they are all made to your office, but the rental price divides it between various. Continue reading: 5 Tips before setting up a business with your friends
2. Reduce costs for furniture and other items:
It is not an obligation to buy new furniture. The desks, tables, chairs, and wardrobes can be bought second hand at a great price.
There are businesses that have closed and the owners usually finish the furniture because they do not have where to keep them; take advantage of these circumstances to make good furniture. The same applies to games of tables and chairs in case you decide to set up a restaurant business or fast food.
You do not need a state-of-the-art computer to start your business. The computing of a business only requires an office suite (Excel, Word) and a browser (Chrome, Firefox), for which a second-hand economic computer will suffice. Of course, if your business is focused on graphic design, maybe this advice does not apply and you should invest in a good computer.
For a business that requires refrigeration, choose to buy a second-hand refrigerator. Do the price research of a new and a used one and you will notice the big price difference.
3. Reduce staff costs:
At this point I want to give you two tips for your endeavor:
The first is that you hire only the necessary personnel, there are many things that in the beginning you should strive and do your own. For example, You can be the administrator of a food business and at the same time serve as a waiter. Another example, do not hire an employee for cleaning. At the end of the day, do the toilet yourself. You are saving a salary.
The second advice to reduce expenses in your venture is to contract practitioners. Most countries have this figure of students who must do their work practice and do not require high remuneration. Investigate if your business applies to be able to contract them.
4. Reduce advertising expenses :
At the beginning of an enterprise, your business needs a lot of publicity, but it is not necessary to incur high expenses by contracting a marketing agency.
Today, with the help of social networks like Facebook, your business can be known to the public in a few days, this task can be done by yourself, in a next article I will give some advice. You can also do guerrilla marketing, for this, I invite you to read the article How to advertise without money.
5. Take advantage of free technology to reduce costs:
Social networks are real technologies, just as you can take advantage of them to advertise, there are also other technologies that will save us money:
It is not necessary to pay for an office suite, for your work in Excel and Word, you can use free software such as Open Office and Libre Office, which are easy to install and use and you get professional results in your reports.
If you need to manage the finances of your new venture, you advise that before purchasing expensive software, research a free solution, you will surely find one that fits you.
Use Skype to hold meetings from your home or business. Whether you need to do business with future partners or suppliers, it is not necessary to waste money and time making trips, paying for lodging; instead, it organizes video conferences with Skype or similar technology.
6. Reduce your business expenses by reducing your salary:
At the beginning of your venture, you must give priority to reinvest the profits and leave the size of your salary in a second place. This is done for an intelligent purpose: Your business should be strengthened and grow.
From the above it follows, that at no time should you weaken the economy of your business to give you personal tastes. Relax, these are small temporary sacrifices, and in the future, when you reach your financial freedom, you will enjoy the reward.
For more ideas about saving in personal life, I recommend reading: 12 ways to save money by eliminating unnecessary expenses.
7. Reduce costs by looking for the most economical distributors:
You should take the trouble to research which are the most economical distributors of the supplies your business needs. Many enterprising entrepreneurs close deals with the first distributor they find and the first offer they make. This is a mistake.
Exhaust all the possibilities, and even let each of your suppliers know that you are looking for the one that gives the most economical price maintaining the same quality. Also, ask what discounts, or offers can you make.
A tip: it can be useful for the success of your venture, know how to double the money with compound interest.
HOW TO REDUCE EXPENSES IN YOUR BUSINESS? THREE IMPORTANT IDEAS:
Never sacrifice quality to reduce expenses. The advice we have given above, seek to reduce the outflow of money, but you must maintain and even increase the quality of their products and services. For example, do not hire an employee for economic, if it is not educated and does not provide good customer service. Do not rent a cheap place, if it is in an insecure area or with hygiene problems.
Keep track of all the expenses you make each month, this will help you identify what are unnecessary or unnecessary expenses. Must keep a record of date, expense cost and justification thereof.
Do not wait for an economic crisis in your country to adopt policies to reduce expenses. Apply the advice we have given you since the beginning of your venture and keep them even at the peak of your business.
Only increase expenses as an investment; that is when you decide to apply growth strategies that allow you to increase profits. For example, invest in the expansion of the premises if you are sure that it will increase customers, and therefore sales and profits.
“Entrepreneurbusiness” recommended to you read this article: 5 Places to find the best business opportunities