As a start-up company, one of the most important things to guarantee your success will be making sure you stick to a lean budget in those first few weeks and months. Looking for ways to keep your operating costs low means you can take that money saved and invest it into other much-needed areas of the company such as staffing, new equipment, marketing, and so forth. But even though start-ups understand the need and benefits in keeping operating costs low, it doesn’t mean they know how to go about it. Here’s a look at 4 ways in which you could bring down the operating costs, and keep them as low as possible.
Only Invest in the Essential Tools
As you work to get your start-up up and running, there will be specific tools and equipment that will be needed to get the work done and allow the business to operate. This is where prioritisation will be necessary. It’s just not feasible or necessary to purchase more than what’s needed. Focus on the essential tools only, and then as the need arises or grows, that’s when you can expand and buy additional tools and equipment.
Save Money on Utility Bills
While it may not be the first thing to jump to mind, saving money on your utility bill can equal big savings. You company can’t go without utilities, but that doesn’t mean you have to feel boxed in and trapped into paying high rates. By using a comparison site, for example, you can access an unbiased switching advice that can result in huge savings. Take a look at your current business water rates and see if you can save by switching providers. Any discount will add up over the course of a year and really help with budgeting in a start-up.
You may also consider a utility bill management system to easily track the flow of your expenses.
Use Energy-Saving Practices
This one goes hand-in-hand with saving money on utility bills. Another way to bring down the cost of those bills is to adopt energy-saving practices from the get-go. This includes such things as: going paperless and opting for digital files and record-keeping instead; supplying employees with laptops instead of desktop computers since they use much less energy; adjusting the heat/air conditioning by a couple of degrees; encouraging employees to turn off their computers at the end of the day; switching to LED lights; and using motion detector lights in common areas so they aren’t left on all day/night.
Put Off Big Investments for the Time Being
It may also be wise to put off any big investments, just for the time being. That doesn’t mean the topic can’t be revisited later on, but ideally you want to keep large investments at a minimum in that first year of business. Instead, focus on building a solid brand and growing your customer base. This will give you a much better financial picture so that you can make an informed decision on when that big investment makes sense.
By using these tips, you’ll be able to create a lean operating budget that can help you to get your start-up off the ground.