Money-saving Tips for New Businesses

All business owners who are just starting out know that it is critical that costs are minimised wherever possible, particularly during the early stages. In the current economic climate, it pays to be aware of all overheads and the effect they have on your company’s bottom line.

One of the biggest considerations is deciding upon a physical location for a business. When choosing a base for your organisation, there are many factors that must be taken into account. These kinds of decisions can have a make-or-break impact on the success of the business, and must not be made hastily or without due care.

Long-term or short-term?

Essentially this decision comes down to whether you opt for a traditional long-term commercial lease, or a shorter-term serviced office space environment.

Whilst on the surface, longer-term commercial office leases look better value for money on a month-by-month basis, they typically last for a period of between 3-5 years. This is a considerable time for any business to commit to, especially in the fragile early stages of growth. In contrast, serviced offices and virtual serviced offices allow companies to rent just enough office space required for present needs, on a significantly shorter term lease, whilst providing enough flexibility to downsize or upgrade the amount of office space at shorter notice and at minimal expense.

When you factor in everything that a serviced office space provides within its all-inclusive monthly payment, it can often work out cheaper than a traditional office space lease. The serviced office fee generally covers all utility bills, telecommunications and IT infrastructure, fitting costs and office furniture – all things that would require extra financial outlay in a traditional permanent lease. In many cases, a receptionist is also provided to handle calls and emails for the serviced office occupants, providing a professional front for your business and minimizing your organisation’s personnel costs. Furthermore, meeting rooms can be paid for only when they are needed, and are no longer simply wasted office space.

Just need somewhere to meet?

Sometimes new businesses don’t require a day-to-day working office space at all. It is a common and accepted practice these days to make use of virtual office services simply as an occasional place to meet with clients in a formal and professional setting. It is possible to hire meeting venues from sites such as i2Office.co.uk online, where you can make use of all the facilities for the day, in a location that suits both you and your clients.

Similar to serviced offices, everything you might need from telephone and internet to stationery and refreshments, can be provided at a reasonable daily rate, so you can focus on the content of the meeting and delivering your product or service.

Hire with Care

If you are just starting out, you will not want to commit too much money to paying employees since your business is likely to run into some teething difficulties over the first few months. Perhaps you have friends who can help out with administrative tasks initially, or you could consider hiring an intern. With so many unemployed graduates there are many who would appreciate gaining some extra experience by doing a temporary internship. This would also allow you to commit small amounts of money for shorter periods of time.

Set up a Business Bank Account

Keeping track of your finances is crucial as a young business and you should always separate your personal and company expenditure. One great way of achieving this is by setting up a business bank account; many banks will even offer you free banking for the first 18 months, plus you can obtain essential support and guidance during precarious times.