Easy Ways to Reduce Overhead Costs For Your New Business
Starting your fifth business can be just as exhilarating as starting your first. The excitement, anticipation, ideas, and vision, it’s like Christmas morning every day.
Depending on the type of business you’re starting, initial start-up costs can range from $0 to a couple of thousand. For example, an agency offering a service may be able to get started at home with a computer they already own whereas someone starting an activewear line needs to budget for materials and labor.
On top of that comes the ‘hidden’ monetary costs per month. Let’s add that up:
Internet - $80+
Phone (if not using your personal, and you shouldn’t be. Work/life balance my friends) - $250+
Morning coffee run - $100+
Printing - $50+
Added electricity if work-from-home - $100+
Storage - $100+
= around $630
And don’t forget the biggest expense of all…time.
Time is the thief of joy. Or something like that right?
Going to a shipping location, waiting on line, then going back home can cost you 45 minutes.
Add a trip to the storage space in there, and you’ve just lost two hours of brainstorming, working on new business, or servicing clients.
As a business owner, it’s important to maximize your time, increase profits, and keep overhead reasonable.
Invest that $630 into a coworking space to SAVE on hidden costs, grow your business, and meet like minded entrepreneurs.
The cost of individual amenities adds up over time.
Whether you’re participating in open coworking, secured a solo office, or want the team together, a coworking membership can include:
Daily free coffee and tea – Including your beloved oat milk (say goodbye to $0.75 markups)
Internet – The fancy high-speed stuff
Printing – It’s usuallyALL included
Storage – New office space = less clutter in that NYC-sized apartment
Shipping – Print, pack, and drop it off at the front desk (45 minutes just became 5)
Wellness – Access to wellness studios that may feature group classes, equipment, and sometimes even a Peloton bike room ;)
Meetings – Monthly credits to use for meeting rooms so you can close that deal
Coworking spaces have been a hot commodity for years, typically being billed as a place for solo entrepreneurs. However, as the years have progressed, along with the pandemic, coworking spaces have been a cost-effective option for companies with teams.
Attractive amenities that come bundled with membership for each employee can increase ROI, team morale, productivity, and even overall quality of life.
That being said, there are questions to ask yourself to determine how to structure your business.
Am I truly productive at work when I am at home?
If I employ freelancers or employees in different states or countries, would it be better to have a dedicated space to meet together throughout the year, or to host a retreat?
Did the activities I participated in on my commute to the office positively impact how I started my day?
What amenities do I desire that I can’t get at home, or are an added, disposable income expense?
If I gained extra time in the morning, how would I use it?
Answering those questions can give you a clearer outlook on where to spend, and how to save on your initial overhead costs.