When it comes to starting a new business, you need to be smart about every decision you make, including how you save and spend money. You must always be strategic and count your costs during the early days because, in addition to having the funds necessary to innovate, hire, and help the company grow, you will also be able to save money for the tough times when business is not so great.
It may seem daunting at first, but there are actually many ways that you can save on expenses, from how you market and pay your employees to how you set up your office. Let’s talk about how you can save money without sacrificing the tools you need to succeed.
Payroll And Marketing
The fact is that you can save money in just about every department of your business, even in the areas that are the most important to the success of your team. For instance, when it comes to payroll, you can save a good amount of money by outsourcing your costs to third-party contractors. Whenever you have to hire new people, you have to pay for their salary, benefits, onboarding, training, and many other expenses, which can become very costly. However, when you outsource to contractors, you save most of that money.
So, while rules can differ by state, you won’t likely be on the hook paying for a contractor’s insurance, payroll taxes, or their severance packages if they decide to part ways. On top of all that, it is typically much easier and faster to hire contractors since there is less paperwork, and you can hire people from anywhere around the globe. While you still need to check their resumes, most contractors are also well-informed on the payroll rules and processes for new and existing businesses, so you can ensure that your finances are in the right hands.
Another area where you can save a lot of money is with your marketing team. While it is always important to study your target demographic and market to the right customers, you can do so without expensive billboards and television ads. Instead, consider using more affordable tactics like email marketing, which you can typically do with inexpensive software, and still ensure that your customers are informed of your sales and new products. According to experts, email marketing can make you $44 for every dollar spent, which means you can accomplish a lot without blowing your budget.
Going Remote And BYOD
As you are building your business, consider how you can use technology to your advantage to not only help your company advance but save money as well. One way to save a lot on computers and other tech is to introduce a Bring Your Own Device (BYOD) policy into your organization. Essentially, this policy allows employees to connect their own smartphones, tablets, and laptops to your network and complete their work using a mix of your resources and their own.
There are many perks of a BYOD strategy. For starters, your staff is already familiar with their devices, so there is less of a learning curve. On top of that, employees can often work from anywhere and at any time, so they can be more efficient. For the cost-saving aspect, BYOD prevents the need to buy expensive electronics, and you also won’t be on the hook for repairs if the device is damaged due to employee misconduct. Employees are also often more satisfied when they are allowed to use their own phones or computer.
While BYOD is a good start, if you are able to allow your team to work on a completely remote basis, then you could see even more savings. Imagine not being on the hook for the cost of a physical building and office spaces. Not to mention the utility bills necessary to keep it running. You avoid all of that with a remote setup, and studies show that employees who work from home are more productive and often happier — so while you may have to spend some money initially on communication software, you will have employees who stay longer and won’t need to be replaced.
Saving Money Around The Office
Even if a physical office is necessary, you can still save a lot of money by creating smart policies. The most important is making the decision to go paperless. The fact of the matter is that, with organizations shifting to digital platforms, there really isn’t a reason to print paper anymore. When you avoid printing, you save money that would typically be spent on paper, equipment, and maintenance, and you’ll also cut down on the wasted space necessary to store those materials.
In 2022, going paperless really is a no-brainer. Employees can email paperwork to managers and vice versa, and many contracts can also be signed digitally. If you have a large meeting or conference, you can email the meeting notes to each employee's smartphone as well as publicly display the information on the presentation screen. To ensure that your paperless policy has the desired effect, require that employees get manager approval before printing a page.
There are other ways you can save money around the office as well, including:
- Comparing prices before you purchase office supplies.
- Keeping the thermostat at a reasonable temperature during winter and summer.
- Making sure that all lights and electronics are turned off when not in use.
- Searching for free software.
- Purchasing used equipment when possible.
As you can see, there are myriad ways to reduce your expenses as you grow your business. Use these tips as a starting point, and you’ll be able to use the money you save to bring your company to new heights.