Starting a new business is a great step in the right direction when it comes to working for yourself, however, it's often overwhelming coming to terms with how much money is required to do so! From one New Zealand business to another, we understand the challenges you face during this time so we've come up with 8 cost saving methods that will help you save money where it matters most.
In New Zealand, we are not strangers to the concept of DIY. If you’re an entrepreneur handling a start-up business, apply this mentality to your initial business strategy. You will gain a thorough knowledge of your business that will help inform you if you’re spending too much money when you do take on a new employee or freelancers. If you’re able to do a task in 2 hours and your freelancer is taking 4 hours, you can see they are lacking in efficiency and not helping the business to its full potential.
There are many reasons why a shared space office is an awesome solution for saving money on costly leases – and we’re not just focussing on the social aspect of it. You’ll see your business thrive from the networking possibilities of businesses coming in and out of the shared environment, as well as creating a creative and fun environment for your staff which will drive a great work culture and help you achieve your goals. If you already have a lease and there are a few empty desks to be used, consider turning your office into its own shared space by hiring out desks.
If you’re leasing a recently vacated office, you may be able to save costs by either inheriting the current furniture or negotiating to obtain it at a considerably lower cost than fitting out the space with all new décor. Chris Larsen of Prosper, did just this and commented that he enjoys the eclectic vibe his office has acquired, “Your conference room looks funky because you have six different types of chairs.” Working this angle to its best ability can make your office space stand out from the crowd, increasing its memorability to clients. And from our experience, being memorable is never a bad thing!
For start-ups that aren’t ready to take on a full time employee or for SMEs that can’t justify it for a small project – look to outsource! There are many highly reliable websites to post projects for freelancers covering everything from web design to data analysts to copy writers. By using a freelancer you will encounter a considerably lower expense than hiring a new employee or using an agency.
Our world has become a connected place in the current digital age. If you need to save costs for your business and in your personal life too, consider relocating away from the most expensive city in your region. Instead, by setting up in a smaller town, you will likely find more affordable leases and a cheaper cost of living overall. Working remotely is becoming increasingly popular with some companies operating in an entirely different country to where their customers are based.
Go digital. If you haven’t already focussed on enabling a large portion of your business to be operational online, now’s the time to make that happen. This can considerably reduce your expenses. Sign up to social media sites early on as building that audience while your company gets off the ground will save you a lot more expensive marketing costs later on.
The answer is always going to be “no” if you never ask in the first place. Negotiating early in the relationship and receiving a special deal from another business can forge an early connection and loyalty in the relationship between your business and theirs. If someone is unwilling to negotiate with you, search the market and find another alternative that offers you the professional relationship you want..
Running a business comes with costs you can’t avoid. We’re talking about the non-strategic spend that goes towards all of your expenses to run day to day operations, from power bills to stationery. How to tackle these and save money? Join a business buying group. Keep track of your spending and see savings upfront. With n3, we have a diverse range of trusted suppliers that you will want to use and the discounted prices you need to improve your bottom line. When you’re buying all of the same items as before, just at lower prices, these are instant savings for your start up or SME business.
Want to find how much you could be saving with n3? Take a look at our savings calculator: Business Saving Calculator.
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