Contributed post
If your New Year’s Resolutions included starting your own business or taking it to the next level, chances are you will need to budget for the startup expenses. If your savings account doesn’t look as healthy as you would like it to, you can still go ahead with your plans, by making some adjustments. Below you can read some tips on how to reduce your startup costs and still make the most out of your new venture.
1) Use Freelancers Instead of Full Time Employees
When you start off, you don’t want to increase your monthly regular expenses without knowing how it will work out for you. Instead, you could work with freelancers who are more flexible and can work towards deadlines instead of sitting around the office all day looking for something to do. As freelancers are contractors, and not employees, you will not have to offer them workplace pension and benefits.
2) Incorporate Online
To reduce your legal costs, you can choose to incorporate online, instead of employing a solicitor. You can save hundreds of pounds on founding your own company, and registering your business online for tax assessment. If you choose to become a sole trader, you will not need to incorporate, and this means the only thing that needs to be completed is registering online for self assessment on the HMRC website.
3) Use Zero Hours Contracts
If you need customer service staff most days, but not all the time, you could even get staff on zero hours contracts. This method will give you the flexibility of using workforce when your business is busy, and not having to pay when you don’t have work in. You can find out more about zero hours contracts at www.elliswhittam.com and make an informed decision whether this is the right option for you.
4) Do Your Accounts On the Cloud
Instead of paying an accountant, you can sign up for online accounting software or simply record your income and outgoings in an Excel spreadsheet. This way, you can keep an eye on your small business finances and monitor your budget and save money at the same time. You can submit your earnings report each month and in the end of the tax year on the HMRC website yourself.
5) Take Advantage of Free Advertising
While most new businesses need to create a budget to get the word out about their new venture, you can now take advantage of social media advertising for free, and build your reputation online, using Google My Business, directories, and other resources. You can submit videos that go viral, and press releases to be picked up by local media.
Starting your business should not be too expensive, if you plan ahead, learn some simple skills, and take an initiative. Make the most out of the opportunities offered by cloud computing and social media advertising, and you can get your venture off the ground for less than you would think. Postpone taking on full time employees until you are confident you can afford all the costs.