Even though being based in the capital presents exciting opportunities for growth to businesses and startups, entrepreneurs are still being priced out of London by huge rental costs and rising business rates.
This is why any savings your business can make is vital, especially if you want to survive in the big city. In fact, running out of money is the number two reason why startups fail outright. So here are our 3 top tips for cutting costs as your startup grows.
Use serviced offices while you grow
Serviced offices often wind up cheaper than a traditional leave because of all that is included with the cost of your rent. This is what makes the spaces so attractive to startups and smaller businesses looking to grow.
With a fully furnished, bills and maintenance included, regular cleaners and access to office equipment like copiers and printers, you avoid having to make these purchases separately. For a startup that is experimenting with location and could expand quickly, knowing you have options on site and minimal extra charges can make focusing on your business that much more manageable.
There are numerous providers of serviced offices and plenty of listings sites available online. If you want to get an idea of the breadth of options, including the types of spaces, both conventional and unique, then you should consider browsing well networked listings like Easy Offices or Instant Offices.
These platforms also helpfully list nearby transport links, as well as what similar businesses are in the area, key if you’re a new startup looking to make connections or establish legitimacy within a sector.
Go paperless with the cloud
Excessive paper use is not only bad for the environment, but bad for the wallet as well. Worryingly, “the average employee goes through 10,000 sheets of paper per year” which equates to £52 per person.
Spending an additional £52 per employee is nothing to be sniffed at, and this cost will only continue to rise as your business grows. So if you’re looking to cut costs as your startup grows, storing your data on the cloud and taking your company paperless is a very viable solution.
If you’re worried about the security of your digital data, contractor accountants 3 Wise Bears, who specialise in cloud based accounting, have pointed out that digitally stored files are more secure than the alternative because passwords and safeguards are required to use the software.
Not only that, but cloud booking software, Pandle, has said that the physical location of the server that stores your data on the cloud will likely be kept “in an environment that utilizes the same physical security measures as most banks.”
They also point out that cloud-based technology will usually employ secure encrypted connections or VPN (Virtual Private Network) connections for particularly sensitive information.
Freelance economy is another area which has seen massive growth in a short period of time, and is showing no signs of slowing. Full time employees can offer your business their loyalty, dedication to your company and stability.
But equally most freelancers are just as dedicated to progressing their own career, which means that while they will be committed to ensuring their work for you the best it can be.
Hiring freelancers also represents a significant cost benefit to a start up, owing to the fact that you won’t need to shell out money for regular paycheques, benefits, and holiday/sick pay. In fact, by hiring more freelance workers instead of full time staff, your business could save up to 30% per ‘employee’.
This also allows you to regulate the growth of your business, so that your company doesn’t wind up growing too much before it’s ready. And if you really enjoy working with them, you can always offer the freelancer a full time job when you’re sure your company can handle it.