Every entrepreneur who writes a business plan wants it to be read and accepted. Although your business may show much potential to an investor, high costs can cause you to be perceived as a higher risk. Fortunately, there is a solution, which is to cut your projected costs.
You can cut costs in virtually every area of your business. Not only will this communicate financial responsibility, but it will also help you to be more flexible in times of economic instability, as well as being more technologically innovative.
Do you really need an on-site secretary?
Everything is costing more today, including the taking on of employees. One way that many businesses cut their costs is to hire temp employees or freelances when they need them, rather than having permanent admin teams. Looking online, there are several sites that offer freelance secretaries and administrative assistants. Businesses in search of these professionals need only review their portfolios and past ratings to decide whether or not they are the right fit for your business.
The best thing about outsourcing this work to a virtual employee is that you can save thousands of pounds a year, because you only pay for them when you need them. As well, because they work on a contractor basis, you don’t have to pay for those things your employees are required to have, such as holidays, sick pay, pension contributions and employer’s NI.
Choose cloud-based software packages
The days of having to purchase accounting or word processing software for a large upfront fee are gone. It used to be that the cost to purchase software was only one of a chain of other expenses like training and maintenance. However, there is no longer any need to do things in this way, thanks to cloud computing. Much like outsourcing your admin functions, cloud computing lets you slash your up-front investment in expensive software, in exchange for more modest monthly charges. As well, the cloud computing site itself is responsible for implementation and maintenance costs, saving you additional time and hassle
Unlike traditional software purchases, cloud computing doesn’t require you to purchase or download updates. Rather, the site takes care of things to ensure that your software is always current. Also, having software in the cloud means that anyone on your team can access it from wherever they may be.
Ditch the Land Line Phone
Doing business can mean that you talk to people from all over the world. However, long distance rates can be astronomical. Thankfully, there is a solution in the form of voice-over IP, or VOIP technology. Available via programs like Skype, VOIP technology makes it possible to use the internet to make calls for a fraction of the cost of calling on a traditional line. As well, long distance costs can be avoided altogether when you have video chats. Another bonus: the face-to-face contact will allow you to have a more personal connection with your clients.
Home working and flexible office space
Traditional business were run from permanent offices. But the good news is that today, you don’t need to buy an office; thanks to technology, you can run everything from home. When you need to get together with your team, you can hire inexpensive flexible office space from companies such as Regus, or conduct routine meetings through Facetime or Skype.
Just like with your other phone calls, you can host meetings virtually, which will save your clients a lot of money and travel time. This affordable option allows you to project a professional image whilst staying within your budget. Instead of spending an entire day travelling to a client site to resolve an issue, many discussions can now be resolved in a matter of minutes through video conferencing.
Don’t buy a warehouse
It’s no longer necessary to spend thousands on purchasing your own warehouse, because these can be outsourced as well. It will take years to recoup the expense of purchasing and fitting out a warehouse to suit your needs. Even leasing a warehouse can involve a large capital outlay that may not be necessary. For small-scale ecommerce businesses, a service like Amazon, which takes care of all of the storage and shipping of your products can offer you the affordability you need to help ensure a positive cash flow. For larger, product-based enterprises, there are many warehousing companies who provide affordable storage and logistics services at a fraction of the cost of your own purchase or lease.
Being as cost-efficient and innovative as possible, and communicating this in your business plan, can bring you the funding results you are hoping for.