HOW TO REDUCE THE COST OF DOING BUSINES FOR A NEW BUSINESS

STRATEGIES TO REDUCE INITIAL COST OF DOING BUSINESS

 Every new business has a compulsive desire to have a check on the cost of doing business at the commencement of operations. Poor planning at this front could ruin a billion-dollar idea at the infancy stage of growth. A few strategies could make a life a lot easier during the transition to a sustained business.

 1.    WORK FROM HOME

Digital technology has indeed lessened the requirement for a physical office to a larger extent. Allowing the resources to work from home could not only save the cost of operations but also save the travelling time and cost for the employees as well. A carefully organized plan could increase the productivity of employees as well. If for some operations physical presence is necessary you can take a space from the booming co-working space of your preference choice to reduce the time and cost of travelling to office.

2.    BPO

Non-core business operations should be outsourced than hiring a permanent employee on fixed monthly salary. This would also result in hiring a more professional and experienced resources at lesser cost. The concept of virtual assistant is common worldwide, now a days.

3.    ZOOMING

The traveling expense could be minimized by transitioning the important meetings to online chats. There has been a range of channels (skype, zoom, google meet, Microsoft team, etc.) that offer an outstanding, secure, and efficient virtual conference. It not only saves cost but save time for extended travelling on busy roads. Moreover, it is the only option now for global meetings as a number of countries has imposed on air travel.

4.    MARKETING/BRANDING

The branding got a more critical space for business than ever. The traditional channels of branding and marketing would be exorbitant to invest the scared capital for a startup, therefore, prefer social media channels to make a focused impact to build your brand on fact pace.

5.     EQUIPMENT COST

 You can reduce the initial cash investment for equipment by buying the used equipment. If buying second hand could impair the quality of product/service, you can opt for getting a lease finance from leasing company.

 6.     SEED-CAPITAL

Equity investors are preferred option than fixed commitment to a lending institute. you can also agree with your star performer for an initial low pay with performance-based incentive or offering an employees’ stock option scheme (EPOS).

7.     MODERATION IS THE KEY

The founders have to limit the life style and corporate show off to make sure you are not bleeding the scare resources from all pores. Most of the executive are in a deception that showing yourself a millionaire from day one is a key to success, while ultimately, the sustained business will make you a better star of the business world.

 I hope the all or a preferred set of above strategy will work for your business. For any comment you can inbox me with your suggestions/queries.