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Simple Ways for Small Businesses to Avoid Overspending During Their First Year

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The first year is a critical time for any small business. If a new business is unable to properly establish itself, find a dedicated client base, and determine the most effective vehicles for promotion during this period, its long-term prospects may be less than ideal. That being the case, it’s in every small business owner’s best interest to avoid overspending during this time and make the most of its limited resources. Fledgling small business owners looking for effective ways to save can benefit from the following pointers.

Be Sensible When Renting Workspace 

When seeking out the ideal store or office space, many first-time business owners opt for spaces that they’re unable to comfortably afford. While workspaces that feature an abundance of roominess or are found in a lavish location may project success, it’s also liable to drain your finances in an expedient manner. If your business has yet to fully establish itself or cultivate a steady customer base, shelling out an enormous portion of your monthly resources for rent can leave you financially crippled.

So, when considering potential workspaces, make sure to carefully consider how much space your business truly requires to operate. Additionally, take care to question whether a posh location is truly likely to have a significant impact on how much business you receive.

Of course, this isn’t to say that you should be married to the location you select. After all, your first location needn’t be viewed as your only location, and if you have a good first year, relocating to a more accommodating workspace may be perfectly feasible. Arizona-based entrepreneurs on the hunt for office space for lease in Tempe would do well to keep this in mind.

Allow Team Members to Work Remotely 

Embracing remote work can have a variety of benefits for your small business. For starters, it’s likely to heighten interest in working for you and result in a flood of applications from highly qualified individuals. Many modern-day members of the workforce value the flexibility and stress relief that remote work offers and make a point of seeking out employers who are cool with working remotely. Secondly, allowing remote work can be a boon to your employee retention efforts. Even if a talented team member receives a tempting offer from another employer, they may opt to stick with you if remote work isn’t part of the deal. In fact, a significant number of workers would rather quit their jobs than return to the office.

Embracing remote work can also benefit you monetarily. The fewer employees who are present in the office, the less money you’ll need to spend on various resources. For example, if most – or all – of your workforce is operating from home, you’re liable to spend a lot less on utilities and refreshments. Furthermore, if you embrace remote work from the get-go, you can opt for an appropriately small workspace instead of a massive office and save yourself a bundle on monthly rent.

Encourage Customers to Post Feedback Online 

In the age of instant feedback, favorable reviews from customers have become more important than ever. When determining whether or not to take a chance on a new business, many people won’t hesitate to consult various consumer feedback sites, social media outlets and other corners of the web for helpful customer reviews. That being the case, you should encourage your customers to offer their thoughts on your business online. Not only can positive reviews generate positive word-of-mouth, they essentially function as free marketing.

Of course, for this strategy to be truly effective, you and your staff will need to go above and beyond when it comes to customer service. After all, you can’t expect favorable feedback if your approach to customer service leaves a lot to be desired.

Small Business

As any small business owner will tell you, the first year can be a truly tumultuous time. In addition to identifying the most effective avenues of promotion, recruiting top talent, and winning over customers, you’re likely to be doing all of this with limited financial resources. As such, it’s important for fledgling business owners to avoid overspending whenever possible – and with the tips outlined above at the ready, such an undertaking is much easier than you may think.


More on this topic:

Dos and Don’ts of Financing Small Businesses

Dos and Don’ts of Financing Small Businesses

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