Most business owners decide to create a business because they want to monetise a particular interest or passion in a specific area – not to deal with finances and budgets, which can get super costly and cause quite the headache. Here are some ways of easing the burden by reducing the potential costs of your small business.
Outsource IT Services
Having your own in-house IT team can be helpful, but it can be an expensive mistake if you have a small budget to work with. Instead, look into outsourcing managed IT services, which will provide you with all the benefits of having an on-site IT team without them being on your payroll. They’re a lot more affordable than hiring and employing your own team, and you’ll get access to a broader range of experts without having to employ them all yourself.
Opt For Hybrid Working
Although we love seeing all our colleagues in one room and appreciate being able to monitor all your employees in one place, hiring enough office space can significantly impact your business’s budget. To reduce your workspace costs, consider having employees work from home or opt for hybrid working.
Particular departments will adapt better to home working than others, such as marketing. Implementing hybrid or home working will allow employees to desk-share whenever they come into the office, reducing the need for space and allowing you to reduce your budget allocation on workspace rent costs.
Reduce Your Utility Costs
It’s easy to overlook budgeting for utility costs, and it can end up taking up a large portion of your business’s budget. When choosing energy suppliers, make sure to shop around and change them every few years or when contracts run out to ensure you are getting the best deal possible.
Even simple changes and/or additions can make you huge savings. Consider switching to more energy-efficient bulbs for lighting or auto lights that automatically turn off when they don’t detect any movement, eliminating the stress of people forgetting to turn the lights off.
Lease Or Buy Used Equipment
Equipment is an unavoidable cost of your small business. People need computers, desks, and chairs, as well as more specialised equipment, depending on the industry you’re in. However, equipment is one of the best areas where you can save a lot of your budget.
It’s worth shopping around again to see what used/refurbished equipment is available – it will cost you a lot less. You could also consider leasing more specialist equipment if you still want newer, more modern tech, but don’t want to pay the price.
When thinking about your small business budget, it’s worth keeping in mind what you can save on and what you absolutely have to spend. Remember, costs can quickly spiral out of control, especially in the early days of setting up your business. Implement some of these measures to help you and your small business avoid going over budget.
