Currently, 65% of UK employees have plans to go entrepreneurial. By doing this, they hope to build a financially healthy future, among other reasons. The only downside may be finding capital to start. Those who manage to get funds have to make the most of it and grow the business, including keeping costs down. This goes beyond setting a budget and requires a more hands-on approach. Here are some smart ways to do that.
- Consider whether you need an office or not
The type of startup you’re venturing into will determine whether you need a physical office or not. For all you know, your home space can be an ideal place to start as long as it doesn’t stifle your entrepreneurial activities. Usually, when there is no pressure to transact in person with customers, the best option is to use a virtual office.
The average cost of renting or leasing office space in the UK doesn’t come cheap. On average, you will pay between £150 and £1500 monthly. As expected, the property’s location and other elements define the final cost. As a startup owner, are you willing to do this if there are affordable options? You can keep business costs low by reconsidering renting an office space and concentrating on growing the establishment.
- Get refurbished office equipment and furniture
This option works for both startup owners who rent a space or operate from home. Admittedly, you will need more refurbished office furniture and equipment if there is an additional team. Used office furniture can be a cost-effective alternative to buying brand-new fittings. Considering that it costs an average of £5000 to launch a startup, you may want to manage your funds wisely.
The secret to buying refurbished office equipment and furniture is to purchase only the things you need for the business. Spending on office equipment that adds no value to the startup can drain your funds and leave you cash-strapped when you need money most. Furthermore, it is imperative to buy your refurbished items from credible sources, so keep this in mind. You will need to exercise more caution, especially when ordering them online.
- Rely on reasonable automation
A study involving UK workers revealed that 40% spend a quarter of their working week engaged in tasks that could be handled by automation. The real cost of repetitive tasks can be seen in low productivity levels and high processing costs. To stop this from happening in your startup, experts say reasonable automation is the way to go. It gives you more free time to attend to more pressing issues. Automation also means you may not have to hire extra hands. That reduces your expenses immediately. Excessive automation use can affect customers’ impression of your business. The persistent absence of a human to talk to can cause a customer to move to the next business.
Evaluating your business plan objectively as a startup is crucial if you want to cut costs. This can help you identify more loopholes.