Striking out on your own is exciting, but there are a number of costs you’ll incur before you even start. There are ways to reduce these costs if you know where to look.
Insurance
It’s essential that you get insurance to cover yourself and your business. Even if you’re a consultant who works from home with just a laptop and a phone, you’ll need professional indemnity insurance to cover you. Other types of businesses will need different kinds of insurance depending on what they’re primary business purpose is.For example, pet business insurance is very different from event management insurance.
There are many ways to get a good deal on your insurance. Price comparison sites are one of the most popular ways to save and many offer cashback on your first year’s premium.
Business Bank Accounts
You can now open and run business bank accounts from your smartphone. Rather than choose a standard business bank account, which can be costly, a basic business online account can save you hundreds of dollars per year in fees. They are often free or very cheap to run.
Software Subscriptions
Most businesses need software such as Microsoft Office, and virus protection, but having multiple subscriptions can add up. In the first instance, look for free versions of software, such as Google’s range of office programs.
Other, more specialist software will usually offer you a free trial before you purchase. Often, if you take up the free trial but then cancel any further subscription, then they will try and lure you back to their product with a discount.
Technology
Hardware costs can mount up very quickly. There are a number of ways that you can save money on these. Don’t be tempted to buy the cheapest product you can find, they will often end up costing you more as they are unreliable and may break down. Look for quality, pre-used items of good brands.
Leasing can also be an affordable option. Instead of having to buy IT equipment upfront, you can lease it on a monthly basis. Having a predictable, monthly outgoing is good for cash flow too.
By leasing equipment, you can afford to have a better standard of hardware that you can change every few years without having to pay a lump sum cost upfront.
Sign Up For Business Accounts With Suppliers
Most online retailers have special offers and rates for those with business accounts. Retailers such as Amazon will also provide you with invoices and receipts suitable for our accounting system.
Sign up for business loyalty schemes too. Places such as hotels and airlines will let you build up points through your business activities and provide you with free trips and overnight stays which can save you money down the line.
Setting up your business can be expensive, so you need to make every dollar go as far as you can to keep those costs low.
Before you buy anything, look for ways to get the best possible pricing on it. We often just accept the first price we see because it’s more convenient. Try and get into the mindset of seeking out the best deals possible every time.
