It is very challenging to start a Dutch business because of different reasons. For instance, most of the time, people have limited or fewer savings and investing them all at once is always risky. Moreover, when it comes to lending, banks simply do not “like” small businesses. One might think about borrowing from family or friends, but it brings social awkwardness and fear of spoiling a good relationship if things don’t work out as planned or if someone goes bankrupt.
That is why most of the fresh entrepreneurs have no choice except for reducing the expenses. The good thing is, you can start a business even with limited resources. Here is how the Dutch do it.
Shared Office
The term virtual office is just similar to a shared office or coworking space in Dutch culture. The tax authorities and trade register are more lenient in this regard as they allow any address to be used as the registered address. A shared office provides two major benefits. One, it can be used as a physical address for the registration with tax authorities. Second, it allows a business to use shared facilities such as the internet, coffee machines, printers, etc. Also, businesses can have part-time meeting rooms on rent. The lease period of these offices usually lasts for 3-12 months.
The cost of an independent office at a premium location is way higher than a shared office. Moreover, the expense graph will move upwards if you have to pay for a separate internet connection, furniture, and staff for your reception.
Things can be very unpredictable for new businesses. Therefore, business owners want flexibility in their rentals. They prefer working in smaller offices or be able to terminate rent at any time. Owners want this ease because they may not feel certain about the future. For instance, it is possible that a company may not make an expected turnover in a specific time period.
However, if things start working out as you planned, you may want to move to a bigger office. But, the best option will be doing it step by step to avoid any expensive or complex transitions. Shared office spaces are always short-leased. However, the conventional lease duration is generally up to five years with advance rent deposit for up to three months.
When things are looking good, business owners are often stuck in different choices to make. For instance, a growing business may want to get an independent office or may want to expand by hiring more employees.
Another vital benefit of a shared office includes knowledge sharing. If you share an office with another relatively new or even a settled business, you may get valuable knowledge and advice from your coworkers.
Do it Smartly By Yourself
A few very simple looking tricks can reduce your business expenses significantly. For example, your business’s first financial year will save you the costs of filing corporate income tax returns and prepare a financial report.
It is not necessary to hire an expensive IT service provider at the start. You can create a corporate email address or launch a website easily with the help of GoDaddy or Strato. Web presence is vital for new and already established businesses. Therefore, having a website is mandatory. In fact, no web presence will hurt your reputation and make your customers suspicious.
Mostly, bookkeeping is a simple and straightforward task for most businesses. If you use free online applications or software for filing the underlying invoices as well as do the booking, your bookkeeper can easily prepare annual reports and VAT filings of your business up to a limited amount.
A services agreement may bring unnecessary costs; therefore, it is essential to evaluate all possibilities. Then, when your business starts getting on the right track, you can expand your operations and afford more luxuries.
