Tag Archive | budget

Low Capital? Slash Those Startup Costs with these Tips.

It’s a myth that you need a lot of capital to start a business. Indeed, there are many ways in which you can get started in many sorts of business with virtually no capital at all.

It may mean that your business won’t have the head start you want it to, but it does mean you can get some very important foundational work completed instead of not making any progress at all!start-up

We’ve got some essential advice for startups that have a fairly limited budget.

Know your budget – and its limitations

This may seem too obvious to point out, but a failing here is what causes failure for many businesses. If you don’t have a detailed understanding of your expected incoming cash flow as well as your outgoings, then you’re going to find it difficult to come up with a good budget in order to save as much money as possible.

Calculate a budget and then stick to it. This is how you’ll best establish the limitations of your business.

Staying at home vs using an office

Starting a business doesn’t mean you need to get an office. Many businesses make the mistake of spending a lot of their budget on office rentals when they could have easily done the work tele-communicative project, at least for the time being.

If you definitely need an office, however, you need to make sure you’re smart about what sort of office you select. Even in thriving business cities, there are office options out there, such as serviced offices, that allow small businesses (or even big businesses) to save a lot of money.

Still, you must remember that getting an office is only something you should do if it will genuinely benefit your business and if you can comfortably afford to do so.

Get open source software

A lot of money goes into licensing business software. Many business owners make the mistake of assuming that all of their employees need a Microsoft Office license when everyone could have worked with open source software instead. Free alternatives to Microsoft Office can be found online.

OpenOffice, for example, is an open source software suite that can be used for free, providing you with word processing software as well as spreadsheet, database, and presentation options.

There are also web-based solutions such as Google Drive which rely on the cloud; these can be great for collaboration and multi-user document editing.

Outsource

There are, of course, several pros and cons to outsourcing. But one of the pros, if you’re smart in how you go about it, is that you can save a lot of money. Instead of hiring full-time employees for given tasks, you can go to an outsourcing agency to get the task done at a much cheaper rate.

The costs of recruitment are high, and that’s true even if you take that employee’s salary out of the equation. While, in many ways, it’s ideal to have an in-house employee for a given task, it’s not often necessary.

Things like IT support and web development, for example, can be done expertly at a fraction of the cost of recruitment.

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4 Business Components that will help Bridge your SME Financial Gap

Starting a business is a big – and expensive – deal. The availability of finance is still an issue for most small businesses, but luckily, the government continuously launches initiatives to allow them to access the funds that they need. This gives small companies the opportunity of growth further down the line.good-business

As finance is so hard to come by, it’s important for small business owners to understand their finance options and how they can keep things ticking along while building themselves up and making a name for themselves. Improving the way you manage your finances is key in small business.

You don’t want to run out of capital, nor do you want to underpay your staff to bridge the gap. Balance is key and in this guide, we’re going to tell you how you can be financially savvy as a small business owner.

Create Your Budget.

It’s one of the very first things any good business owner should do. Knowing exactly what you need before seeking finance is simple planning and the first step to improving your finances is to make a budget – and stick to it. If necessary, create two forecasts: one which shows you exactly what you need and what your leftover budget will be, and one that overreaches what you need so you can cover yourself at all times.

Keep Track.

If you don’t have a dedicated finance team, you’ll need to keep track of your finances yourself. Creating that budget is no good if you choose to deviate from it! Make sure you plan out money for software like this to help you keep track of all your incoming and outgoing. This is so important for your business as once you start paying attention to where every penny goes, you can’t miss.

Be Vigilant.

When you invoice clients for work you have undertaken or products you have sold, you need to keep on top of payment dates and how much you are expecting. Check out this link on debtor finance to understand how your company can bridge the financial gap while you wait for payments from clients.

Being vigilant about when you are expecting payments is important as you don’t want your business left in the lurch due to non-payment. It’s one of the biggest issues in the business world, but it doesn’t have to be if you keep on top of things.

Expand.

As always, looking ahead in business is important for growth. You want to know exactly where you can expand your portfolio and stay on top of the game in your industry. If you think you may struggle to come up with the next big thing for your company, then get a team of thinkers in your company together and start innovating.

The only way to get somewhere in business is to look ahead and know where you can make changes for the better. Daily fluctuations in the market can be small but you want to keep those investments in your business coming, for the better.