Research from Microsoft reveals it costs an average of £17,096 to run a new business in its first year, managementtoday.co.uk reports. Fortunately, it has also shared some top tips for cutting these expenses.
A survey by the software giant into controlling business costs has found that the majority of British entrepreneurs that go into business or start a franchise will be saddled with start-up costs of over £17K.
Three-quarters of respondents said that they were more worried by rising costs now than in 2012 and a third said they needed to make cuts but wouldn’t pass costs on to customers. Interestingly, 60 per cent believed that they could save money if they could start again with a better knowledge of costs.
With that in mind, Microsoft has dispensed some simple cost-cutting gems via a new infographic. It starts by highlighting the importance of valuing time, thereby insuring it is factored in at planning stages and ways to streamline processes, saving time, should always be sought.
Next, it asserts that ‘keeping an eye on cash flow’ is essential for staying on track, while the budget should also allow a contingency for unexpected issues. Microsoft also emphasises that ‘no cost is too small’ and that each one should be recorded and accounted for; after all ‘minor costs add up’.
It also adds via microsoft.com that there could be savings made by allowing employees to bring their own device to work. This would reduce equipment and maintenance costs while enabling employees to work more productively on smart phones, tablets or laptops which they are familiar with.