Many small businesses don’t make much money early on so it is great if you are able to save on unnecessary costs initially. Here are our 5 simple ways to cut your costs to the minimum so you focus less on paying your bills but focus on building your product/services and generating income.
1. Use Free Accounting Tools
Every business needs to do accounting for tax filing purposes, so accounting is mandatory. However, for small businesses with little expenses, it’s generally fine to just keep your own accounting records. What’s better, there is now a free accounting cloud based tool known as WaveApps. It is simple, easy to use and a great way to save money for small business. It even comes with an app for easy tracking of your receipts as well as invoicing.
2. Consider a Sole Proprietor or Partnership to Private Limited
What kind of business do you intend to run? If you are running a small service business such as a freelance writing or graphic design, you are unlikely to incur significant liabilities which puts your personal assets in danger. In that case, starting a sole proprietor only costs you $65 compared to $300 for setting up a private limited if you file directly with ACRA.
For more info on the differences, see the ACRA website.
3. Appoint a Company Secretary From Within The Company
If your intention is to setup a private limited, then the next question would be do you have at least 2 directors who are Singaporeans/PRs? If you do, you can consider designating one as a company secretary and save on the fees of appointing a professional company secretary. Do take note that you will need to do all the relevant filings required of a private limited company.
4. Get Free Sales/CRM Software
One of the key aspects to any business is to sell and having a good sales/customer relationship management (crm) system is critical to maintaining a good sales effort. The top 2 recommendations for free tools are Insightly and Base. Base has a beautiful interface and cloud sync with mobile app. The free features are limited by number of deals you can have, which is up to 50 for the free account. Insightly’s free account is limited to 2,500 records which seems better, but it doesn’t have a mobile app like Base.
5. Work From Home or Use CoWorking Space
Many people who start a business think they need an office right at the beginning. However, do you really need to have an office? Do clients actually need to visit your office or do you go to your clients? Saving on office rental is a huge cost that can be used for the business. If you really need an office space, consider a coworking space at places like Regus for a low monthly fee or even free coworking spaces at the Startup Cluster in Ayer Rajah (Blk 71, Blk 73, Blk 79).
Have more suggestions on how to save costs for a small business? Feel free to contribute!