Starting a new business is an admirable endeavor. It takes a lot of ambition, planning and careful money management to make a company successful, so owners must find ways to save wherever possible.
Here are seven simple ways small-business owners can minimize startup costs and start turning a consistent profit more quickly.
1. Switch to Remote Hiring
Due to the COVID-19 pandemic and changing worker priorities, remote hiring has become the norm instead of the exception. Startups with hybrid or fully remote employees do it by necessity, but even businesses with full in-person workforces should make the switch. This simple adjustment expands the hiring pool and is cheaper than interviewing everyone in person.
Instead of paying for flights and other accommodations so potential hires can interview in person, businesses can do everything online with a free videoconferencing app. Plus, providing a remote option will attract more people to job openings. Not everyone wants to travel just so they can interview for a job, making hiring easier for everyone involved.
Plus, most small businesses don’t have very impressive workplaces yet. Getting people to work for an unproven company is easier when the hiring process takes place online. It puts them on a level playing field with bigger competitors since everyone uses the same platform.
2. Use Employee Monitoring Software
Employee monitoring software is a must-have for small businesses. It works closely with the remote hiring process, embracing the hybrid workflow and allowing workers to have flexible schedules. EMS ensures these flexible schedules stay within reason and people working from home stay on task.
EMS is an all-in-one human resource that enables owners and managers to track many relevant metrics involving employee productivity. Activity levels, projects completed, video calls, collaborations between departments and ongoing learning are all part of EMS software. A small-business owner can’t supervise everyone manually without breaking the bank. EMS offers a cost-effective solution to this dilemma.
A well-established company can overcome a lull in productivity, but not a small business. EMS identifies bad work habits and holds employees accountable, ensuring startups continue to grow without needless setbacks.
3. Take Advantage of Cloud Computing
One of the costliest parts of growing a company is streamlining employee collaboration as the workforce expands. Small businesses have limited resources and can’t always keep up with their growing responsibilities. Thankfully, they can use many digital communication tools.
Cloud computing is the most influential tool yet. Centralized platforms like Google Drive, Microsoft Office 365 and Slack allow workers to talk and work on the same projects from anywhere. All they need is a computer and a reliable internet connection. All departments are connected on the cloud and can organize their schedules without issue.
Building a business infrastructure is hard enough, but maintaining it is a different ball game. All small businesses should use cloud computing to simplify employee collaboration and keep everyone on the same page as the company expands.
4. Rent or Buy Refurbished Equipment
Renting or buying refurbished equipment is a great way for businesses that require vehicles and other heavy machinery to save money. If there are other options besides buying new expensive gear, why not take advantage of them? Renting enables companies to find vehicles for their changing needs rather than scouring a limited market of new options.
Renting also allows businesses to test different machines for a predetermined amount of time. They can rent for one day, one week or whatever time frame is necessary to make an informed decision.
Buying preowned cars does carry more initial risk because they might look unprofessional, but this doesn’t have to be a permanent problem. Businesses can always make simple and inexpensive modifications to improve their appearance and performance. Instead of spending an extra few thousand on new cars, spend a few hundred on simple refurbishments.
5. Invest In Procurement Software
Inflation and supply chain issues have tightened small businesses’ budgets lately more than usual. They must find affordable supplies with simple payment and shipment processes. Procurement software accomplishes both, giving businesses full visibility of all transactions and helping them find the most affordable items.
Procurement software also benefits small businesses by helping them identify and adjust wasteful spending habits. Inefficient spending is common no matter how big a business is, but it’s much more debilitating for startups. Given the current state of the economy, transparency between owners and suppliers is more important than ever.
6. Prioritize Customer Relationship Management
Establishing and maintaining a loyal customer base is one of the most challenging parts of growing a startup business. Customer relationship management software simplifies this tall task. CRM provides a central platform, similar to cloud technology, where companies can track every customer interaction, including emails, website traffic, social media activity, and online or in-person purchases.
Although it doesn’t directly cut startup costs, CRM indirectly makes operations more affordable by identifying the most valuable customers and ensuring business owners stay connected. Part of this customer identification includes tracking changes in shopping habits, which helps sales and marketing departments update their strategies more quickly.
7. Automate Wherever Possible
With labor shortages affecting almost every industry, machine automation has emerged as an alternative to human employees to help businesses pick up the slack. Automated tools can be found everywhere from construction sites to retail spaces, streamlining day-to-day operations by performing monotonous tasks like inventory organization.
These automated tools rely on artificial intelligence, which means they get smarter as they continue to work and gather more information. The longer a business has the same machine, the better it will perform. Small businesses struggling with high turnover rates can stabilize their workforces with these technologies and stay on track.
Put Startups on the Road to Success
Starting a small business is never easy, but it’s more challenging than usual in this economy. The margin for error is slim if companies want to survive the next few years and emerge as strong and reputable brands.
These seven money-saving strategies will go a long way toward helping startups reduce their expenses and stay on the road to success. The benefits might not be immediately apparent, but they will grow the longer these plans remain in place.
Every minute and every dollar counts.