One of the most exciting adventures in life is starting a new business. It opens a world of opportunity to extend helpful services and make life easier for those around us. However, in the beginning stages of building a business there are several unavoidable expenses but by following these 8 tips on increasing profits you are sure to have a little extra in your pocket at the end of the day.
#1: Be careful with perks.
Many business, ours included, start in the living room of your home. Let it be that simple. Trying to attract the best employees to your company with perks that a new business couldn’t possibly withstand will only put your business in debt. Hold off on the break room ping pong table and fancy coffee machines until you’ve really made it to a steady point financially.
#2: Use free software programs.
We love free stuff, don’t you? Sometimes the “latest and greatest” isn’t always the wisest for a startup company. Many programs offer a long free trial period and there are even substitutes for programs like Microsoft Office through Google that are just as effective and helpful (i.e. GoogleDocs, GoogleSheets, GoogleSlides). You can also check out Zoho Books for accounting software and Trello for project management.
#3: Make the most of your credit cards.
If you already have a credit card, take advantage of all of the perks they offer like frequent flyer miles or cash back. If you are looking into getting a business credit card, make sure you choose the card that will give you the best benefits.
#4: Hire Interns from local colleges.
This tip is so underrated and probably one of the best ones here. College students will work for much less than someone with tons of experience and are eager to gain experience and knowledge in the workplace. This situation is a win-win because you have the opportunity to teach and cultivate a young mind, the student learns valuable lessons, and who knows – you might have just trained your future #1 employee.
#5: Barter for services.
As your business grows, you will need services from a number of independent contractors or companies. Hold onto your checkbook and see if there is anything service you could offer them – free of charge – in exchange for their services before you pay up. Make sure that the exchange won’t affect your bottom line as much as if you were paying them in cash.
#6: Minimize your personal expenses.
Building a startup will require a good amount of your own money so naturally you want to minimize your personal expenses. Buying a new house or car are both really exciting life milestones, but avoid making big purchases like this while you are in the startup stage. It is important to track your expenses, especially when you start bringing in revenue, and your accountant is a great person to help with this.
#7: Outsource some of your products.
Sometimes hiring a full-time employee to take care of one-time small projects like building or updating your website are better handled financially when it is outsourced to an independent contractor or consulting company.
#8: Use LinkedIn for recruitment:
If you are determined to find the best people to hire, recruiting new employees can be very expensive. However, LinkedIn serves as a great free way to find employees for your startup. This will require you to do some of the legwork, but in the end, you won’t spend as much time as you would with other recruiting strategies.
Working with startup business is one of our favorite things; we love to see inspired people making moves to improve the world around them and follow their dreams. Having a consistent accountant to help you manage your funds and improve your bottom line is the unspoken 9th tip because it really is so important. If you are looking for an accountant to help you take on your new venture, please contact our office to learn more about our services. Good luck, dreamer!