UK business creation is at an all-time high — more than 650,000 new businesses were created in 2016.
Startup Britain statistics reveal a concentration of entrepreneurial activity around the South East, but other hotspots include Cornwall, County Durham, Edinburgh and Northern Ireland.
But in a highly competitive marketplace some of these new firms might fall by the wayside if they don’t budget effectively in their first few years.
So if you’re thinking of launching your own business, here are three cost-cutting tips for a successful startup.
Certain business sectors are still suited to operating primarily from a physical outlet where customers come to purchase goods or services.
But if your business isn’t completely customer-facing, it’s worth considering whether you can work just as effectively remotely.
Running a remote team saves considerable overheads on rent as well as the running costs of electricity and security.
And if you’re struggling to hire the right talent in your region, you can benefit from hand-picking the best staff from a global talent pool.
Terminal 3 is a startup launched by entrepreneur Mevish Aslam to meet this precise demand.
And it satisfies the wanderlust of digital nomads by collating them in groups for specific client projects — then sending them off to explore a different international city each month.
But whether you employ your own permanent team of remote workers or utilise their skills on a contractual basis, you can certainly save cash with this approach.
Offshore tax arrangements
You’ll have to ensure you stay on top of your tax responsibilities or an unexpected demand could cause you to go bust very quickly.
But offshore company formation offers the opportunity of remaining completely compliant while making significant savings.
Offshore tax consultants can offer specialist advice, but advantages include profit retention and asset protection to guard against unstable banking regimes and futureproof your business.
Taking this step might seem unnecessary for a modest startup, but once your business expands and is subject to punitive taxation in your home jurisdiction you might wish you’d looked into an offshore option.
Outsourced HR services
Any firm needs the core functions of an HR department.
After all, people need to be paid and provided with benefits in a timely manner.
But startups don’t actually need to hire an HR department because crucial payroll and admin tasks can be carried out by a professional outsourced service for a fraction of the price.
And the founder and key allies can make crucial hiring decisions and embed the appropriate culture themselves —so HR input in these areas won’t be missed.
Once your firm grows it’s probably worth engaging the services of an experienced HR partner, but this can be put on the backburner until it’s really necessary.
Taking your first steps in an entrepreneurial enterprise requires energy, grit and dedication — but these three cost-cutting tips for a successful startup can streamline your firm so that it’s set for success.