Starting A Business? Check Out These Clever Ways To Cut Costs!

Posted on Feb 26 2015 - 9:31pm by Editorial Staff

Budget

Are you planning on starting a business? If so, you will soon be joining the ranks of other entrepreneurs determined to take more control of their lives! Working for yourself is an exciting and rewarding prospect. It’s something that only those with a real entrepreneurial spirit succeed in doing.

You will doubtless have spent some time researching the ins and outs of starting up a new business. But one thing you might know be sure of is how to keep your costs down during those crucial early stages.

The good news is that, today, you will get the answers you need to cut those startup expenses down. Some of these tips are ones that you might not even hear from so-called “business advisers”! Check them out below:

Lease what you can buy

Many people create business plans where they ask to borrow or have invested five or six-figure sums of cash. The trouble is; a shocking number of those individuals could slash their initial investment costs by up to 80%!

You might be wondering why that is so. The answer is simple: they want to buy everything they need! As a savvy entrepreneur, you know it makes sense to lease things that depreciate. You should only buy things that will increase in value.

You can lease just about anything: computers, cars and even water cooler machines! The beauty of leasing is you can get rid of your items after a fixed period and get brand new ones again. It’s difficult to that with assets you’ve bought, especially as you’ll make a loss on their sale.

Choose the right insurance policies for your business

Insurance costs make up a significant amount of any company’s expenses. You have to buy insurance for your premises and its contents. You also need to insure against employees and visitors having accidents at your place of work.

Fleet vehicles will also need suitable insurance cover too. That’s why it pays to choose the right policies from the right providers. For example, you could get all-in-one professional and liability protection from places like Hiscox.

Companies like Insure Fleet can create one policy for all your company cars and vehicles. And so forth. Being savvy about your insurance policies will help you to save significant sums of money!

Outsource (nearly) everything

Everyone knows that it costs a lot of money to hire employees. Apart from their salary costs, you also need to account for tax, insurance, pensions and so forth. What I love about outsourcing is that you can still hire the people you need. But you don’t have to employ them directly!

That means you cut out all those extra overheads. All you do is just pay an invoice each month, the same as what you do with your other suppliers. You can outsource all kinds of operations. For instance, your IT and support department can get outsourced. As can call centers for sales and customer services.

I guarantee that once you follow the advice on this page, you’ll slash a considerable amount off your initial startup costs!

Credit: Picdream / Pixabay

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Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.