Funding for business is what fuel is to a car; you need it all the time! From the times of yore, the hunt for funding has been a challenge for businesses. Most business ideas drop dead because of a lack of funding. Testing the waters in the ocean of start-ups is not a cakewalk as it requires the courage, thought process, and; mindset of an entrepreneur.
There are high chances that you became a CEO just because of your sheer passion or love for the idea. However, the fun does not come that easy when you must also take care of all the unappealing tasks that come with it. One such area is expenses management, keeping track of costs and overheads, keeping your finance in check.
This blog chalks out zero-cost ways to be an entrepreneur.
Track it to Crack it!
Overcompensating for resources and supplies is an alarmingly common trend in UK business. Properly tracking and monitoring operating costs is one of the most key tasks. Mismanagement of expenses hits the profit margins harder than one might think. The best way to avoid unnecessary costs is by effectively tracking every expense. Cloud technology provides good alternatives for the problem through the usage of tools for tracking. With the help of web-based business applications, one can easily integrate many business operations, from marketing to project management, under a single platform.
Remote First Approach
Office setup and operating costs are significantly high. When you consider leases, utility bills, cafeteria, maintenance, and upkeep, the expenses start to go up. All these expenses eat up the profitability. Shifting to a remote work environment has been a blessing in disguise for SMEs. Cloud technology has also played a crucial part to enables everything from connective working and communication to task-setting and time management. Businesses in almost every sector are now able to operate remotely, saving operating costs.
Open-Source Era!
Entrepreneurs should look out for software substitutes for human resources. The digital age has brought to life a lot of possibilities. The highly person-dependent and redundant tasks can be automated or performed by software. The use of open source and freeware for administrative tasks can help in cutting down on high costs. Some common examples can be virtual receptionists as first-level inquiries and drones for warehouse monitoring.
Organic Marketing
Gone are the days when the marketing channels were limited and expensive. With the surge of digital, SMEs have umpteen avenues to market their product or services. Social media marketing, google ads, sponsored and paid SEM campaigns have become some of the best ways to promote business. Evaluating digital marketing techniques and leveraging the most effective way of promoting your business can help in saving marketing costs.
Thoughtful Hiring
Businesses run with resources, and human capital is one of the most crucial resources. However, planning the staffing and hiring costs is a vital way to reduce business expenses. Entrepreneurs must draft the hiring plans keeping in mind the immediate requirements. Entrepreneurs can explore possibilities of gig workforce, contract workers, and full-time resources.
Save Taxes
Entrepreneurs filing taxes on their own must be aware of every deduction available to them. Some of these may include machine depreciation, home office expenses, staff salaries, etc. Keeping an accountant to help you out with the entries and record-keeping can always be considered.
The bottom line is, there exists no business with unlimited funds. Unless your business is an unstoppable goliath, one thing is most important, profitability. The best survival strategy for any business is continued profits. It is not only about generating revenues but also about reducing costs to ensure maximum profitability.