New start-ups are on the increase, rising from 432,300 in 2007 to 436,600 in 2008, with the overall number of businesses in the UK increasing to around 2.9 million.
Setting up a business in today’s recession can be a challenge in itself, especially as many existing businesses are downsizing to keep afloat.
It is therefore vital that start-ups keep a firm hand on the purse strings.
Here are some helpful tips on how to get started and save money in the process.
Software that doesn’t cost a fortune
Don’t buy traditional software packages, as you have to pay out a large amount initially, plus training, implementation and maintenance costs will need to be factored in.
The cost of hiring people these days is high and reliability can be an issue - a cheaper alternative is a virtual PA
You will more likely have to pay to keep this software up-to-date in future too.
Instead, get your software hosted online (cloud computing), that way you pay as little as £15 per month and you won’t have to foot the bill for maintenance and implementation costs, and best of all your software is always the most up to date version, and automatic updates are free.
You’ll not only save money, but you and your team will be able to access the software remotely too via PC, Mac, laptop or mobile.
Don’t hire an admin assistant or secretary
The cost of employing people these days is high and reliability can be an issue.
A much cheaper alternative is to use a virtual PA or assistant on a pay-as-you-go basis.
The virtual industry market is booming in the current economic climate as more small businesses are cutting costs and reaping the benefits of low-risk outsourcing.
What is great about virtual assistants is that you don’t have to pay sickness, holiday or other benefits.
Over time you build up a great relationship with your virtual PA, and none of your customers are any the wiser – they just think you’ve taken on extra staff.
Don’t hire a receptionist
Many start-ups make the grave mistake of trying to answer calls themselves only to get frustrated by constant call interruption while they’re in meetings or trying to grow their businesses.
The fact is that many rely on their mobile voicemail or answer phone when they are too busy.
Unfortunately, statistics reveal that 80% of callers will not leave a message, resulting in lost revenue.
Don’t be another statistic: use a virtual receptionist to take your calls.
Depending on your business requirements, call answering services offer flexibility.
You can permanently divert all calls to a virtual call answering provider or just divert as and when you need to.
It is worth the investment as it makes your business look bigger and more professional and as we all know, first impressions count.
It’s also much cheaper than employing a part-time receptionist and you get more hours covered – including having your phones manned during office hours.
If you’re a global business then some providers offer 24-hour support too.
Don’t buy office space
Running a business from an office can be a huge overhead for a start-up.
Fortunately, today’s market can provide better solutions that guarantee savings.
Take the virtual office for starters: a small business can run their day-to-day office from home, benefiting from considerable savings and tax benefits.
When they need to meet clients face-to-face they simply set up meetings or conferences in a virtual office business centre.
This has been a godsend to small-business owners, especially when they need to impress an important client.
First impressions count and they manage to project the right professional image, but at a price they can afford, and leaving customers none the wiser.
Hiring a part-time virtual office will set you back a meagre £29 per day and you can opt for a private office or shared open-plan space – it’s up to you.
Visit Regus or Basepoint for further details.
The home office no longer has the stigma it used to as start-ups increasingly want to save money in these uncertain times.
You only need to visits sites such as Enterprise Nation to see the benefits and volume of business start-ups setting up from home enjoy.
Virtual offices offer you flexibility, which is all-important as your needs will change as your business grows.
Start-ups who want the best of both worlds could, for example, work from home 80% of the time and the other 20% from a virtual office, and this proportion can easily be altered accordingly as your needs change.
Telecom provider
Consider reducing your phone bills every quarter by installing VoIP technology.
VoIP (or Voice over Internet Phone) allows you make phone calls over the internet at the fraction of the cost of a normal phone call, saving you hundreds of pounds on your annual phone bill.
It’s really easy to set up and run so don’t be put off by telecom technology.
Also consider more cost-effective ways of marketing your business.
E-marketing is a very powerful and cost-effective way to market your business.
It enables you to send out newsletters, mailshots, special offers and loyalty schemes directly to your customers via their email address at no extra cost.
It saves on postage and/or printing costs too, as well as encouraging them back to your website to see what other services you offer.
The only investment is the time needed to design your promotional e-mail material – it’s that simple.
