In the present times, starting up a business need not entail so much capital. With faster communication methods, one can now even start working from home. This is very helpful for business especially if you do not have so much capital. Here are ways on how you can operate in an effective manner with minimal costs:
Operate with skeletal staff
When operating, always make sure to analyze your business model. Some businesses do not need a lot of staff. If you can operate with just a handful of staff, then do so. A lot of business owners now make the use of virtual staff. You can hire a virtual assistant to help you with all the documentation, while you attend to the marketing aspect. That way you only need to pay for the hours your assistant has worked. This will not only cut down costs for salaries, but you will also be able to allocate the funds for other things. Once you need to hire full time staff, only then should you do so. But even then, just make sure to hire for key positions only, until further needs arise. Always remember the leaner, the better.
Be wise when choosing an office
A big chunk of your operational expenses would go to your rent. The closer your office is to the central business district, the more expensive the costs would be. So if your operations need not be in an actual office, you might opt to work from home for the meantime, especially if you are just starting up. If you need an actual office space to work from, there are places which lease out small office spaces or even desks where you can work from. You can also take clients out or work from coffee shops. Usually costing a mere fraction of an actual full-fledged office space, this will be easier on your pocket. Just spend on the necessary things, such as high-speed internet connection, if you are dealing with clients overseas or if you need to communicate with partners at all times.
Be frugal when spending on office equipment
In the past, most business owners would opt to buy unbranded computers and laptops as these were considered to be cheaper as compared to those known brands. However in the present, with a lot of new brands coming up, a lot of branded equipment have become more affordable. Weigh your options and see what your needs are. If your business does not entail a lot of computer work, then you can just opt for a cheaper unbranded computer or laptop. But if you need to use your laptop or computer 80% of the time, then invest in a good one. That way you will have a longer warranty period and looking for parts would be easier in the future. As a lot of communication is done through phones and emails, it is also good to purchase smartphones. Be sure to get those of good quality as you will always be using your phone to communicate with clients.
Make use of what you have
A lot of business people with startups want to buy everything as they feel that their business would need a lot of things for it to function. It is true that you need to spend a bit to be able to make money. However it is always best to avoid spending money unnecessarily. If there is no need for a website, you can start out with free websites. A lot of these types of websites allow you to create your website for free. There are even templates provided with stock images you can use. You might need to pay for webhosting. But the costs are usually minimal as compared to paying for the domain name. Once your business picks up and your client base becomes wider, then you can consider spending a lot more on online marketing. In the meantime, make do with free advertising by using social media like Facebook, Twitter and the likes. There are so many ways to start up your business using little or even no money at all. Just be creative.
Always remember that keeping your operations lean at all times is best. You only need to expand when the need arises. Even then, you need to make sure to expand slowly. That way you will never have to worry about overspending. After all, frugality will lead to effective management practice in the future.
Featured and 1st image by Stuart Miles / FreeDigitalPhotos.net
2nd image by bplanet / FreeDigitalPhotos.net
3rd image by cooldesign / FreeDigitalPhotos.net