Frugal Expansion, You Say?
Being frugal in business doesn’t mean being cheap. It means looking at the opportunities placed in front of you and making smart decisions about how you pay for those choices.
For most savvy startup owners, growing a business is the goal, and if they can do it without spending too much money, all the better! It’s important to keep business coming in – after all, a healthy cash flow can keep a company in the green as things evolve. But it’s also important to keep outgoings low while changes are made.
The words ‘frugal’ and ‘expansion’ do not often go into the same sentence together. However, a savvy entrepreneur who is keen to do more with the business they have will do what they can to make smart financial decisions instead of just throwing caution to the wind. Frugality, for most, is a natural way of life. When you have two options of the same calibre, you’re likely to go for the cheapest option, right? Others don’t see the world that way and must learn how to be frugal. This includes shopping around for equipment, haggling on van leases, and even using comparison websites for estate agent fees when it comes to renting office space.
There are always ways to cleverly cut corners without cutting down on the quality; you just have to know what to look for. Find areas of your business where you can trim the fat from expenses and push through an expansion plan without borrowing further. We’ve outlined three potential ways of doing so below:
Tech Up. So many companies are going green in their practices, and it is often admirable to be environmentally friendly. However, there is a secret here. A lot of companies that are switching to a paperless way of doing business have also realised that the cost of stationery is rising, and know that carrying a tablet to meetings is a clever way to save money on more notepads. Utilising the power of email to send minutes of meetings – indeed, doing as much as possible electronically in general – can save on that office stationery budget you had set aside. Once you’ve implemented the change, you’ll be saving money overnight!
Outsource. The cost of hiring, training and bringing on a salaried employee can be huge. A full-time contract is a big commitment, so if you can outsource the job instead you’ll get the same quality of work (if not better) and won’t be tied into finding the cash for company benefits and taxes. That may sound harsh, but what if your bottom line drops? You still have to pay that salary and those benefits, whether you are getting a positive cash flow or not.
Market Freely. Social media marketing is huge right now – and it’s free. You may currently be using paid websites to advertise your business and there truly is no need. With the birth of social media comes a whole line of free websites to advertise on. Use as many as you can and save your budget.
Ultimately, you have to choose whether to be frugal or lavish when it comes to pushing ahead with the business you’ve got. But the best advice when it comes to the bottom line is: don’t waste money when you don’t have to.