If you are the owner of a startup company, chances are that you are thinking about money. A lot. It’s no surprise really. Every business in today’s climate are strapped for cash in one way or another. And when a new business is set up, it is down to the owner’s ability to make sure that the business has the scalability factor. In other words, can the budget be managed efficiently to ensure that the business can be “scaled up” or down appropriately? Therein lies the question, at what point do you decide to scale up? Approximately 70% of startups in the tech sector scale too soon, so as a business owner, you would need to isolate the areas of your business where costs could be cut. Look at the following and see if any of these ring true in the overspending department for your company.
1. Use Better (and Cheaper) Supplies
An easy temptation in business is to purchase the most cutting edge and contemporary technology to stay ahead of the game. It seems like a logical approach to take, it impresses clients, and surely newer is better, right? Instead, there are many options for free software in making your business run smoothly. For example, if you rely on a lot of video conferences for your day to day actions, then Skype or Google Hangouts are free and are as good as anything out there. There are many other items of software that businesses can use on a free trial basis. So, while you are trying to grow, it is still feasible to have total communication and help the operation of the business continue to grow.
2. Be Smart with Your Taxes
A lot of businesses have no idea what they can claim for when it comes to doing their taxes. From the home office to the expenses you accrue while sweet-talking that important client over a meal, there are many different ways that you can save money when you need to. By knowing what you can deduct in terms of costs and what you are entitled to, it will help you through the difficult period because you will have more money to invest back into the business. Joe Callahan can help secure a successful tax resolution as well as other law firms that are local to you. Asking for advice from a tax professional will get you clued up on what you can, and cannot claim for in expenses.
3. Look at Your Advertising Budget
When you are starting your startup, marketing and advertising are essential components to getting your name out there, and to generate essential revenue. A mistake many startups can make includes overspending on design and advertising. If you have a team of people that are handy with marketing, why don’t you hire them over the expensive design agency. With social media and the amount of tools that are at your disposal, you can create an effective marketing campaign without going to an agency to have long, painful meetings about branding. A peril of overspending on marketing can mean that you could have overwhelming demand for the product which you may not be able to keep up with.