Dec 03, 2020Simple Ways to Save Money as a Startup
It’s no surprise that starting a business is neither easy nor affordable. One or two months in business will tell you that much.
Since the initial investments in a business can be costly, especially during uncertain times, it pays (literally) to be strategic with funds along the way. Take a look at a few ways that you can tighten your belt in the first several months of business.
- Ditch expensive company space
Sure, having the modern tech-style open seating with a cereal bar and a basketball court may attract talent and a millennial vibe in the office, but these perks often fail to make up for the high price tag. On top of monthly rent, you’ll also find yourself dealing with added costs for utilities, maintenance, and upkeep. Consider operating your business remotely (like we do!) to minimize travel and utility cost.
2. Re-examine unnecessary tools
While some software tools are useful upfront, many companies make the mistake of purchasing software that offers very few benefits. Since you’re dealing with small business, keep in mind that many systems are created for larger businesses. Do your due diligence and find softwares and companies that are poised to help startups. If you choose not to sign up for a particular service, consider free alternatives of the tools you are paying for to save money.
3. Focus on accounting accuracy
Keeping track of expenses early on is critical to the success of a business. When startup dreams reach far, accounting is often left firmly on the ground. Establishing organized and detailed accounting practices early on gives you a more accurate picture of how well the business is performing. Then, when the first tax day comes around, you won’t be scrambling to find records from months ago.
4. Be wary of over-hiring
Over-hiring can be just as much of an issue as premature hiring. Growing a business is exciting, and the passion and energy of the process can lead to massive expansion. To avoid over-hiring and draining precious funds early on, only hire in response to the demands of your business. Consider hiring freelancers or interns to test out new positions in the company before bringing on a full-time person.
5. Know the right employee perks to give
Employee perks will help your employees maintain a positive attitude at work, but some perks are more beneficial than others. Focus on benefits that build company culture. Hire people that add to the company culture, and continue to make it a part of the everyday environment.
Did you know that some employee perks can get you a tax break? Contact your Nimbl accountant to learn what simple purchases can actually save you money. Many businesses procrastinate learning about behaviors that will build company morale and give your wallet a break.
As a startup, it’s critical to be proactive with finances. Although accounting is something many businesses put on the back burner, it is one of the early keys to success. Contact Nimbl today to learn how you can become more financially successful with pristine accounting.