It’s the conversation no-one likes to have with their accountant. A year into a new business venture and it looks like your start-up funding isn’t going to see you through to break-even point. It’s frustrating and humiliating. You know a major breakthrough is just around the corner, but how can you go back to the investors with nothing but a good looking website and an empty bank account?
But where did the money go? You certainly didn’t get paid much and your premises aren’t glamorous or expensive. Looking back over the year you see that it has been your IT costs that have sucked up most of your original investment. Buying a PC, getting a business phone line and broadband, getting your website developed… cost after cost which have slowly but surely eroded your cash pile. If only you could go back in time and make better use of the money you had received...
Well, if you’re still in the planning stages or have just begun a business venture, you have no need to live out this nightmare. The fact is that not keeping tight control on business IT costs is a prime reason why businesses that begin with decent funding end up in trouble later. Here are four tips to keep your IT costs low from the very beginning:
Keep recurring costs low
When your business is just starting it’s easy to feel that nothing costs money except your time. But recurring costs will eat your funding slowly every month and you’ll regret going with the first business phone line and broadband supplier you come across or that photocopier hire agreement. Check you’ve got the cheapest suppliers from day one.
Get friends or businesses to donate old PCs
If your business doesn’t involve cutting edge technology, why blow the first few thousands of pounds you have on up to date laptops? A large multinational company’s IT department will dispose of tens of laptops every week, so if you can convince someone there of the worth of your project, you might be able to save precious pounds for marketing your business further down the line.
Second hand furniture and fittings
Why spend money on pimping your offices when you should be pimping your sales figures? Slash your spend by going second hand – if the business goes well, you can always buy that Habitat sofa later.
Website development
If you’re planning a website, have a good think about what you really need. Are you planning to sell online? How are you expecting to attract customers? Website costs can range from a few pounds a month for a simple brochure website to tens of thousands for a custom site. Buying more than you actually require at the beginning will seem foolish as you get hit with bills during your first year.
About us
At XLN Telecom we specialise in giving businesses the lowest possible prices for business phone lines and business broadband. Visit our website to find out how we could save you money: www.xlntelecom.co.uk