These days, you don’t have to be sitting on a small fortune to launch a business. It’s a myth to believe that all entrepreneurs should be independently wealthy. The reality is that there are a thousand different ways to start a company. In fact, most owners borrow cash if they’re confident that their business model is capable of turning a profit within the first few years.
It is a very common strategy, but it obviously raises the stakes. Once you’ve taken out a loan or ‘bootstrapped’ your venture with cash from friends, you’ve got to make it work. While sustainable growth is an important part of success, you must also find practical ways to cut costs, maximise profits, and mitigate risks.
It is no easy feat, but there are plenty of corporate resources out there that can help you to thrive and survive. Keep reading to find out more.
Make Your Own Rules
The single biggest expense for most companies is rent. Leasing a suitable office space, on traditional terms, can be crippling, particularly in prestigious parts of New York, Chicago, or Miami. The good news, however, is that conventional long term leases are not the only option.
To cut expenses, you can choose Servcorp for cost saving virtual offices. These flexible facilities allow entrepreneurs and small businesses to keep operating with minimal setups (from home or coffee shops) because their communications tools are accessed remotely.
In other words, you can establish a professional phone line, mailbox, and physical address for your company, even if you don’t technically have a full-time office. Tenants are welcome to visit the facility in person, but most check in remotely to pick up calls and other messages.
Outsource the Non-Essentials
One other effective cost saving strategy is to outsource peripheral and non-urgent jobs. This is something which tends to work very well for young companies, but it can also be helpful if you’re an established brand with a ‘one off’ requirement.
Freelancers, independent contractors, and remote workers often command lower rates than onsite employees. In fact, even when they don’t, they still cost less, because you’re not responsible for their daily care. You’re paying for the work and only the work.
Don’t make the mistake of thinking that offsite teams don’t work as hard as traditional ones either. Corporate researchers have proved, on many occasions, that giving employees the freedom to shape their own routines is a fast track to loyalty, trust, and increased productivity.
Don’t Be Tempted By Shortcuts
This is next piece of advice is very important. When you’re a young enterprise, just starting out in a fiercely competitive world, it can be tempting to try and cut corners. However, many a business has come undone by trying to shrink expenses in the wrong places.
For instance, it’s always worth investing in a trustworthy accountant or creating an internal accounting department. You can save yourself a lot of time, money, and trouble by committing to best practices like this. Never lose track of transaction data and log absolutely everything.
Modern software is making this easier than before. If you need advice on which programs to use, you can ask your virtual vendor for recommendations. They may be able to provide best class software or point you in the right direction. Alternatively, you can just ask fellow tenants.
The Endless Value of Logistical Flexibility
The truth is that there’s nothing more valuable for businesses than control. The more influence you have over logistical and practical assets, the easier it is to regulate your expenses. Don’t forget that it isn’t really tough markets which cause companies to fail.
They collapse because they cannot adapt quickly enough to meet challenging conditions. Virtual offices can help you do this by offering negotiable terms and giving you the opportunity to customise your service package. When you go virtual, you only pay for what you use.