Last updated on July 15th, 2021 at 11:53 pm
Starting a business on the back of last year is certainly challenging. Many budding entrepreneurs are still keen, however, but looking for innovative ways to hold onto their funds. There are plenty of cost-cutting solutions for startups at the moment. Workspace alternatives such as co-working and remote working are commonplace. Digital marketing has also replaced more expensive forms of advertising and promotional events. Technology has proven to be a great tool in helping startups save money this year. Here are a few simple ways new entrepreneurs are cutting costs in 2021.
Coworking spaces
For startups that don’t have the resources to invest in renting commercial property on a long-term basis, there are many benefits of coworking spaces. It’s possible to rent a hot desk or private office temporarily, even just for one meeting. It gives businesses a professional environment to meet clients in person if necessary. It’s also a more practical way for teams to meet about specific projects. In the majority of coworking spaces, remote workers will have access to better equipment and more ergonomic conditions.
Virtual address services
Before investing in buying or renting their own property, startups are also using virtual address services. This gives your business a physical address which helps to boost credibility, even if you’re based out of your own garage. There are also financing options available to startups if they do want to invest in their own property. These include bank financing such as a hdb bank loan, crowdfunding, or private investors. In short, there are different options for startups relating to business premises.
Automation tools
There are plenty of advanced small business automation tools that are making many people’s lives easier. Startups are able to automate many services and aspects of their business. Customer support is one of the most popular tasks to automate. With a few self-service tools on your website such as chatbots and FAQs, potential customers are able to find the information they need without calling a helpdesk. Staff dealing with customer service will then have more free time to deal with more complicated queries and issues. Many other tasks can also be automated relating to marketing, sales, and analytics.
SEO strategies
SEO is cost-effective as a marketing solution. Optimizing your website to rank higher on the search engine results pages is something you can do yourself if you’re tech-savvy enough. Even outsourcing SEO services is cheap in comparison to other areas of marketing or advertising. Your website is the first place customers will go to find out more about your brand. This means it’s essential to optimize it for user experience as well, which will in turn boost your SEO. It needs a logical structure, fast page load speed, and it’s imperative that it’s compatible with mobiles and other devices. It’s also important to add engaging content to your website.
Social media campaigns
There are also many benefits of social media as a cost-effective marketing solution. It’s free to use and you can optimize your accounts to help promote your brand. Social media is also very useful for networking and many startups get useful business advice or form valuable partnerships in this way. You can even join up with other businesses to host virtual events. Many budding designers also work with influencers. Social media is a very versatile tool.
Outsourcing services
One of the changes in the way businesses operate at the moment is that a lot of services are outsourced remotely. This is a cost-effective solution for startups and small businesses with fewer resources. Outsourcing can be done on a one-off basis, without the need to spend money on overheads or time training staff. Most startups outsource entire departments at the beginning including, IT, marketing, HR, and accounting.Â
Expense tracking tools
You can’t be too careful nowadays but fortunately, there is an easy way to control your spending. With the best expense tracking tools in 2021, you can keep on top of small expenses, deductibles, taxes, and invoices. There are plenty of accounting applications which means that startups no longer even need to outsource this service. You can automate your bookkeeping and check your accounts on your smartphone.
If you are thinking of setting up a business with minimum resources, these innovative ways to cut costs have made it possible. It’s always important to consider the financial risks involved, however. Plan for the future of your business and align your spending with your objectives. This way you’ll be able to make the most out of your budget.
