- Despite the coronavirus pandemic, now might be the best time to start your business.
- You may not see the big-picture value in saving small amounts here and there, but it accumulates.
- Seek innovative ways to cut costs and adapt your business models to launch your business and remain competitive in these tough times.
- Visit The Financial Today’s homepage for more stories.
Starting a business during the COVID-19 pandemic might be the last thing on your mind, but just like Instagram, Uber, Slack, and WhatsApp were founded from the last recession, this coronavirus pandemic will likely produce other successful businesses. Now might be the best time to start your business.
Regardless of how small it is, it still takes some capital to start a business. If you have a small capital, don’t wait to start your business until you have big capital. Humble beginning is something you should be proud of because today’s most successful businesses started small and frugal also.
There is safety in small beginnings and there is unlimited capital in the experience gained by growing.－ Henry Ford
We’ve compiled a list of ways to help you reduce costs when you start your business.
Consider Being Home-based First
Not enough capital to rent an office space? No problem. You can start your business from the comfort of your own home. You can start using an extra space, turn it into a comfortable office and use it to run your business. It is way cheaper than renting out a commercial office space.
Depending on the kind of business you have, there are options to do with this so if this is not an option for you, you can consider co-working spaces or offices.
Develop an Online Store That’s Creative and Simple
Going online doesn’t cost you an arm and a leg. You can start your own Shopify store and sell your products online if it applies to your business.
It is also important to remember that getting an online store is also a good way to first check the demand before spending major capital in renting out a physical storefront space.
Hire Capable Freelancers
Be mindful that hiring someone permanently will pose a lot of financial restrictions on your starting capital because a permanent employee would require compensation, benefits, and allowances that you might not be able to afford.
There are lots of freelancers for jobs or projects you can outsource, who are more than able to complete it at a more affordable rate. You’ll be saving the expense of hiring a new employee this way.
Be a Fan of Free Software
Free software is used to nearly every aspect of a business such as accounting, among many others. There are tons of software that you can download for free. Some premium features may be missing, but a small business requires a few tasks to do so the premium features may not be necessary for you during start-up.
A lot of premium software comes with a 30-day free trial period after which a subscription must be purchased. Since you’re trying to save money on your business, take advantage of these free trials. If you realize that you don’t need the premium features, you can stick to the free version and upgrade once you need it.
Just doing simple things like switching your light fixtures to LEDs, powering down equipment when not in use, and going paperless, will help you save a lot of money overall.
Whatever space your business uses, whether it’s home-based or office-based, the more energy-efficient your space is, the lower the utility costs you ‘re going to have. You may not see the big-picture value in saving small amounts here and there, but it accumulates.
Buy Goods in Bulk
Vendors are going to give you big discounts when you buy goods in bulk. Buying in bulk is usually less expensive per unit. The goal is to purchase large quantities to reduce the price per unit.
This is good if your business deals with goods that are not perishable Yes, you ‘re going to pay more in advance, but you’re going to save more in the long run if you buy goods in bulk. This will allow you to increase the profit margin of your business.
Be Creative with Advertising
There are many ways you can advertise your business without spending a lot of money on it. You can place your company’s website on your letterhead, business cards, and e-mail signatures. Place your logo and company name in places where people would most likely see it, such as employee uniforms, promotional items you give away, invoices, company vehicles, and any press releases.
These are just some of the ways you can save money when you start your business. You have to seek innovative ways to cut costs and adapt your business models to launch your business and remain competitive in these tough times. After this coronavirus pandemic, the businesses that are still standing will be the ones that rose to the challenge. Be creative in your start-up capital without sacrificing quality.