When you are starting a new business, every single penny counts. The last thing you will want is to become one of those businesses who don’t make it past the first year when you have put in a lot of work. Unfortunately, many new business owners simply don’t have the funds to cover all of the expenses that they will encounter and so need to look at ways to save money along the way.
To help you with this, we have put together some money saving tips for new businesses in 2020. This will include everything from setting a budget to see how much you are working with to hiring freelancers over full time employees. Find out more of our useful tips below.
Set A Budget
While setting a budget for your new business might not sound like the most productive way to save money, it can certainly help you out along the way. When you know exactly how much money you have to spend in your first year, you will know what you can and can’t spend it on. A budget should include all of the incomings and outgoings from your business bank account. As a new business, you cannot afford to be splashing the cash on things that aren’t going to get you a return on your investment.
Take a look online at some tips to help you set up your new business budget. You will find plenty of guides that take you through all of the important steps. You should be able to get the hang of this in no time at all.
Many business owners think that the first thing they need to do when they start a new business is to hire the staff who are going to help run it. While there is merit in finding reliable staff that are going to be loyal to your new business, you’ll also find that hiring permanent team members will cost you a lot of money. You will need to pay for everything from their salary to their benefits and find a place for them to work in.
This is why you should consider hiring some freelancers as this will save you a lot of money along the way. Yes, freelancers are harder to manage and they might not always be available, but they are typically much more cost-effective in the short term. Once you get your business up and running and have some money to spare, you can consider hiring some permanent staff.
Focus on Social Media
Another great way to save some money in your new business in 2020 is to focus your marketing efforts on social media channels. You might be tempted to splash the cash on billboards, TV ads and radio ads but are these the most cost-effective options? Sure, the traditional methods can bring you a lot of customers, but you are going to need to break the bank to afford them in the first place.
When you use social media to market your new business, you won’t have to spend a penny if you don’t want to. You can allocate some of your budget to paid advertising on this channel, but you are in control of what you spend. Try to focus on marketing your new business on sites like Facebook and Instagram and see where this takes you.
Automate Digital Marketing
As we have just discussed, social media can be one of the most cost-effective methods for marketing your new business. However, it should be noted that it will take a lot of your time to set-up the channels and continue to post regularly enough to get real traction. For this reason, we suggest that you consider automating your digital marketing and scheduling in posts in order to save some money. You’ll find that there are many great tools available that can help you with this and the more time you save, the more money you will.
Not only should you be scheduling in your social media posts to save time buy you should also consider condensing the time you spend on email marketing. Did you know that you can send mass email in Outlook? This is something to consider if you want to reduce the time spent on marketing and save money along the way.
Ditch the Office
The final money saving tip that we have for new business in 2020 is to consider ditching the office. When you have a physical office that your staff work in every single day, you have a lot of overheads to consider. This can include things like the cost of the rent, the equipment that they need to work and the energy bills that come along with the office. These expenses can be very tricky for a new business to cover and this cause problems further down the line. It is important that you are budgeting for these and that you will not run into money problems just trying to afford them.
In 2020, more businesses are moving toward a remote working model and this can be very successful. Not only can this save you money, but it can also help you to attract candidates that might need a more flexible workplace. Find out more about remote working online and consider this to save some money this year.
As you can see, there are plenty of ways that a new business can save some money in the first few months. If you are thinking about slashing your budget and saving some cash, you should try to take on board the tips that we have given you in this article. Think about how you can automate your marketing processes and ditch your office in favour of remote working. Once you start saving, you will have more cash to spend on other aspects of our business and make it past that one year mark.