Now more than ever, entrepreneurs launch and run their business from home. Not so long ago, mentioning a home business usually meant people going door to door selling Avon products. However, running an incredibly successful business from the comfort of your home is now easier than ever.
If you’re thinking of doing this, the first thing you need to consider is the financial aspect of it all. While running a business from home does come with fewer expenses, there are ways you could cut costs even further. Let’s take a look at how you can achieve that.
Work alone…for now
As an entrepreneur, you’re probably itching to hire a few staff members and have things moving at full steam ahead. The issue here is that employee costs are one of the biggest start-up costs. So, for now, avoid employing anyone unless you have to.
That being said, while you may not be employing anyone at the moment, that’s not to say you must do all the work by yourself. Consider outsourcing tasks to freelancers to help take the load off your back. Whether it’s an admin assistant replying to emails twice a week or someone to build your website while you’re working on other essential things, it will work out significantly cheaper than hiring someone as an employee.
Use what you already have
Another exciting aspect of launching a business from home is looking forward to your new working space. However, for now, you should use what you already have. Grab a table from your spare bedroom and a chair from your kitchen for now – you can always upgrade these once the money starts rolling in.
Your working space also applies here. You may have big plans to build an extension onto your home as a permanent working space, but that will cost a lot of money upfront. Instead, why not use another room in your home temporarily? For example, if your end game is to create a kitchen space dedicated to your business, why not use an area like your garage? Epoxy floors are cheap to install and are easy to keep clean, and a quick plastering job will ensure your temporary workspace is just fine for the time being.
Using what you already have for now and upgrading later will save you money in those first few months!
Opt for used furniture
If you don’t have the furniture you need at home, you’ll need to find something suitable – fast. Rather than buying new furniture, shop online or visit charity shops to see what’s available. You’ll often find you can pick up all of the furniture you need in excellent condition but at a fraction of the price.
You could also post a want ad on social media for anyone willing to sell their furniture for cheap or even donate it to your business. People are more generous than you think!
Invest in the best equipment
This seems a little contradictory, but if you’re using equipment all day, every day, you will be using a lot of energy in the process. If there’s something you should invest in at the beginning of your new business, it should be the best equipment. Not only will you use less energy by doing this, but you’ll also be able to work as efficiently as possible right from day one.
When shopping for equipment for your business, look at the energy rating.
Utilize the cloud
You may think that paper and ink aren’t costly, but if you need to print many documents or receipts, you’ll soon notice how much it can add up. Everything is online today, and the cloud is a fantastic way of storing important files without taking up too much space in your office.
So, unless you really need to print these documents out, consider switching to paperless documentation. Not only is it better for the environment, but it will work out cheaper for your business too.
Shop around for business insurance
You may not have even thought about business insurance, but it’s an essential lifeline for any business, startup or not. Your business may require various insurance policies, such as fire damage or product liability. Whatever your business needs, it’s essential to shop around for your business insurance.
Most insurance companies offer discounts to new customers and rely on them not comparing prices upon renewal. Don’t make that mistake!
Pay your bills electronically
Most bills are paid online in this day and age, but some businesses still have some bills that have the option to be paid by phone, post, or online. Switching to completely paperless bills and paying online will save you money in the long run. While you think nipping to the post office a few times a month isn’t expensive, adding up those costs over a year may shock you.
Paying online is free, aside from the cost of electricity, and you don’t have to leave your office or even your seat if you don’t want to!
Stock up on office essentials
While this post has discussed paperless as much as possible, sometimes you may need paper, ink, and other office supplies. To save money in the long run, your best bet is to stock up on these items by buying in bulk.
Wherever you buy your office essentials from, whether it’s a Walmart or other similar chain, be sure to stock up on your paper, ink, pens, notepads, and even coffee and tea. You’ll notice that you’re saving a significant amount of money in a year or two!
Finally, running a business from home is cheaper than renting an office space. Use these tips to cut costs further, even if it’s only a tiny amount at a time. Remember, every little bit helps!