Start-ups on a Budget
It’s not easy venturing out on your own into the world of business, especially with the surge in start-up companies across Australia in recent years. With investments in startups growing faster than in Europe or the US, Australia has positioned itself at the forefront of the booming start-up ecosystem. While this is great news for the economy, it makes business survival even more challenging for a new company.
The Wall Street Journal suggests the failure rate of start-ups is as high as 3 in 4 (or 90%). Given the noticeable increase in startups popping up across the globe, this daunting figure may be surprising to some, but there are a wide variety of factors at play when it comes to diagnosing why so many new businesses and startups are failing. One of the most common reasons is – unsurprisingly – capital. Monetary issues account for a failure rate of around 29% of start-ups, according to a recent Fortune survey.
Operating in a highly competitive landscape comes with the crucial need to budget accordingly. Since money is proven to be one of the biggest reasons for startups to fail, it’s important to stick to an achievable budget from the outset, and cut down on costs wherever possible.
Savvy Startup Tips
- As a new business, it pays to identify your priorities before you start spending money across several areas of the business unnecessarily. For example, if you’re searching for an office, it’s worth opting for a shared space until the business really starts to take off. Sacrificing on location and a spacious working environment will far outweigh the need for convenience and comfort during the first year or two when you’re just trying to keep afloat.
- When it comes to technology and company equipment, consider purchasing electronics second-hand at an online auction. Gregsons offer a huge range of computers, laptops, tablets, printers and photocopiers – all of which are essential to a functioning working environment. Even if your company only has two staff members to begin with, purchasing second-hand electronics could halve the costs of equipping the office with the tools they need to work.
- Outsourcing has become a major trend in business environments in recent years, with around 80% of businesses outsourcing in 2017. The main reason Australian businesses are outsourcing is to cut the costs of administration and finance support. It’s also a highly effective and efficient way to operate, as employers only need to use the skills of their employees as and when required, minimising labour costs all round.
You may not be able to control the external factors of the marketplace, but it’s all down to you when it comes to managing the processes and expenditure your business. Establishing a budget plan that minimises costs within the first few years is a great place to start, and is sure to set you off on the right foot.
Check out our Computers & IT auctions for some great products that will help cut costs for your business.
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