6 places where you can save money in your business

Around half of the businesses fail or shut before their fifth
birthday.

Why do small businesses fail? What is one of the biggest
reasons for business failure? Mismanagement of funds.

It certainly doesn’t mean embezzlement, in fact, in most
cases the more money is going out of the door than money coming in.

This again doesn’t mean that you have to sit on the big cash
reserves before you start new business. We are big proponents of starting
business with limited budgets. In fact some of the biggest businesses in India
had started with either limited or no budgets. Click
here to read some inspirational business stories of Indian entrepreneurs.

This means that when you are starting a new business, you
need to hold your purse strings tightly. Every rupee should be allocated carefully
to bring more than a rupee back in the business.

There are some common expenses to start the business, but
when you look closely, they aren’t so essential at the start. Here are few
examples:

1.    
Office space and furniture

 The one
thing which the successful tech companies have taught is that the greatest
businesses of all times actually started in small home offices or garages.
Amazon, Hewlett Packard, Infosys all began either in garages or in small home
offices.

Office
space is the biggest overhead expense of any business. Unless you absolutely
need an office or a store, you can save thousands of rupees by working from
home or smaller offices with secondhand furniture.

 

2.    
Software

No I am
not asking you to use the pirated software. These days there are free or low
cost cloud options of nearly every type of software are available for your
office needs, for example Google Docs, Insightly, Canva, Sendinblue etc. Rather
than spending on buying licensed software, you can either use these cloud
options for free or with very little burden on your pocket.

 

3.    
Hardware or Equipment

The
fancy all in one print/scan/copy or a Mac Book or Thinkpad can look cool. But don’t
you have a printer/scanner at your home which looks works as well. Don’t you
have a laptop or a desktop computer which you are using for some time now?

With
the capital in hand, it can be tempting to buy latest cool technology. But the
time has not yet come, not so fast. Save your money, keep reserve for lean
period or emergencies.

 

4.    
Office parties

You
would always want to celebrate small success and appreciate your team by taking
them for lunch or having office parties, but this will break your budget very
soon. There are plenty of other cost-effective perks like giving them work from
home once a month or allowing them to wear casuals in office for a day.

 

5.    
Advertising and Marketing

Effective
advertisements may result in excellent sales and profitability for a company. Many
businesses spend lot of money on branding through News Papers, Magazines etc.
The fact is digital marketing costs
just pennies in comparison with the old school advertisements. Further, the
campaigns can be measured easily and the strategies can be reworked if one
strategy doesn’t work.

When
you are just starting, these low cost advertisements are the better options to
get some initial sales.

 

6.    
Business seminars and conferences

There are
numerous seminars and business conferences which promise to teach you how to be
a successful entrepreneur, how to make your business a multimillion dollar one
and how to work just four hours a week and run a successful business.

Think
dip down, no one knows your business better than you. Don’t waste your money
even if the seminar is for free. Remember, there are no free lunches and after
all you are spending your valuable time on attending the seminar.

 

Want
someone to guide you? Enlist a mentor whom you know and trust.

Click
here to get free 30 minutes consultation on your cash flow management.

2 Comments

  • by Bharat jethani
    Posted June 25, 2020 5:20 pm 0Likes

    Great article, keep on sharing such insights

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