Did you know that around 20% of new businesses fail within the first year? While this may not be something you want to hear, it is important that you know how challenging it is to make it through that first crucial 12 months. And do you know the number one reason why new businesses fail? It’s because they run out of money.
Fortunately, if you are a new business that is looking to cut costs, there are several techniques that you can adopt to do so.
1. Save on staff
If you only have a small start-up budget, you need to think very carefully about how many employees you really need in the first few months of trading. Full-time employees are expensive as you need to pay not only their wages but also provide sick pay, holiday pay, and other employee benefits.
Instead, it can be a much better idea to outsource tasks to freelancers who you can use as and when you need them.
2. Use fuel cards
For businesses that travel to meetings to see clients or drive around making deliveries, the cost of fuel can be astronomical. Fortunately, there is a simple way that you can track your spending on fuel and make significant savings.
Fuel cards are a type of business expense card that are used solely for paying for fuel. These can be used instead of cash or company credit cards, and you don’t even need to top them up before use. Instead, you pay how much you owe at the end of the month. These can also be used to compare the best fuel prices in your area.
Click here to apply for a fuel card and start saving money on fuel for your business today.
3. Utilise free marketing strategies
Rather than waste any money you do have on expensive paid advertising where you will struggle to compete with bigger, more established brands, why not utilise free marketing techniques?
Search engine optimisation (SEO), for example, allows you to drive organic (or free) traffic to your website. However, be warned, SEO can be hard to get your head around at first.
4. Expand your network
When you are a new business, and you are trying to grow your customer base, one of the best actions you can take is expanding and enhancing your network circle.
Remember the famous saying, “It’s not what you know but who you know”, as you never know who you might meet at a local tradeshow or industry event. You can also network online on platforms such as LinkedIn and Medium, both of which can help you to reach out to people within your niche and form partnerships.
5. Look for free software, tools, and apps
There are so many free software tools and apps that you can download and use as a new business, many of which can save you time and money. If you are operating a one-person show, then free automation tools are your new best friend, as these can carry out lots of time-consuming and monotonous tasks for you.
