Anyone who wants to run a financially successful business needs to keep a close eye on their costs, no matter how experienced you are in running one. It is particularly important, however, for startups to cut costs where possible.
This doesn’t have to mean cutting out essentials, but rather getting smarter in the way you make your purchases. Overhead costs, which are those that are not linked to the creation of your product but rather running a business in general, can be surprisingly expensive and eat up a large portion of your overall budget. Prevent this from happening by utilizing our tips and tricks on reducing costs to keep your startup successful.
Own-brand vs branded
It’s always tempting to choose the most raved about name brand, but they’re usually an expensive investment. While some elements, such as computers or essential pieces of technology, are worth spending extra on, there are some swaps that are well worth making in order to save some money. For example, you can find non-branded alternatives to expensive branded ink and toner on Toner Giant, which are more affordable but produce the same results.
Things like stationery, storage and some furniture don’t have to come from premium brands but rather from other reputable companies that offer a similar product for a lot less. Oftentimes we’re simply paying for the name of the brand when the cheaper alternative is just as good.
Buy in bulk
Every office needs a stocked up supply cupboard consisting of stationery, printing paper, notebooks and other essentials, but keeping on top of everything can be time consuming and expensive. Solve both issues by purchasing items in bulk through a speciality wholesale website. Doing so is wise as you often get a significant discount on big purchases and they’re typically listed cheaper than in high street stores, making it easier to grab a bargain – or 100.
Stocking up in advance means you can wait for sales to make your next big order, making it even cheaper in the long run. This is also a lot less stressful than making last-minute purchases when you realise you’ve run out of stationery before the next big office meeting.
Invest in automation
Technology has changed both the job market and businesses themselves, with many turning to program over people when it comes to repetitive administration tasks. Not only is using automated systems cheaper than putting someone on the payroll, it eliminates the risk of human error and is typically a one-off cost unless you choose a pay monthly program. Other tasks that can be automated are email marketing, payroll, accounting and social media posts, of which you can find a variety of automated systems to take over for you.
Set and stick to budgets
Before doing any of the above, however, it’s important to figure out your budget. This gives you a figure to work around, plus you can haggle with sellers as you’ll always have a top price to stick to. While you may have to overspend in emergencies, it’s important to stick to your budget as much as possible. If you’re noticing an issue where you always overspend on one area, such as printing or stationery, it’s wise to rethink your budget as it may be too low for what you need. Having a budget makes it easier to keep track of your money while ensuring each sector of your business is fulfilled.
Getting your overheads sorted in advance could be the key to getting the best deal, but don’t panic if you’ve already started. Implement our tips on your next purchase, whether it be for ink or diaries for the team, and you’re sure to save some money to spend elsewhere.