Launching a new business is always going to be a challenge. Even in the most favourable economic conditions, you are going to be competing against other businesses, many of them already well-established.
To give yourself the best possible chance of survival, you should be looking to minimise the amount of money that you need to sink before you can open your doors properly. Here are three simple ways that any business can keep their start-up costs as low as possible.
When launching a new business, one of your biggest expenses is going to be marketing. Conventional wisdom is that marketing is expensive and there’s not much you can do about it. However, there are a plethora of modern marketing techniques that you can employ which will enable you to market effectively on a shoestring budget.
Chief among these is the concept of guerrilla marketing. Guerrilla marketing is all about creating marketing that looks as organic as possible and which blends seamlessly into our surroundings. This could be something as simple as printing your logo onto some stickers and putting them up in your local area. Guerrilla marketing is cheap, but it is still highly effective. In fact, a big part of its appeal to audiences is that they don’t feel like someone is trying to sell them something when they encounter guerrilla marketing.
Outsource Some Functions
Outsourcing is an easy way of saving money, space, and resources. Exactly what aspects of your business you can consider outsourcing will depend entirely on what specifically your business does and the wider market conditions that it operates in. Common outsourcing targets are things like IT and customer service that can be adequately delivered by people who aren’t physically present at your place of business.
For many businesses, outsourcing will enable them to access people and equipment that would otherwise be well beyond their affordable price range. For example, if you aren’t confident in your ability to keep your corporate network secure from attackers, you might want to think about outsourcing your cybersecurity.
Compare Prices on Everything
The purchasing decisions that you make when you are launching your business will have a significant impact on your financial circumstances during those crucial first months. It doesn’t matter what the purchase you are considering is – whether it is office supplies or utilities, you need to make sure that you aren’t just buying the first option that you come across.
There are plenty of price comparison websites out there for specific things, just as your business utilities. Utility Bidder, a business utilities comparison site, has a useful guide on a few simple ways to improve your business’s energy efficiency. Take notes and then spend some time searching for the best value options now, rather than having to switch everything over later because you can’t afford it.
There is no shortage of challenges for new businesses to contend with. No matter how savvy you are and how much you prepare beforehand, there are always going to be some serious challenges that you will have to overcome if your business is going to be a success. Keeping your costs low during your start-up phase will enable you to build a war chest that will see you through any future tough spots.
Subscribe to Jebiga for a dose of the best in gear, design, rides, tech and adventure.