Many people are setting up their own businesses – but how can they keep costs down?

Everyone knows there has arguably never been a more difficult time to find a job in the UK than right now.

As the country continues to battle against the impact of the global economic downturn and stands on the brink of entering a triple-dip recession in 2013, it is perhaps unsurprising that many companies have toned down their hiring levels.

However, despite the shortage of traditional employment opportunities, many people are finding work by thinking outside the box and setting up their own company.

An increasing number of Britons are opting to take this route as opposed to scrambling around in the crowded jobs market – and it could be said there has never been a better time to go it alone and tap into your entrepreneurial spirit.

Even though Britain remains mired in economic difficulty, the government has pledged it is committed to providing positive business conditions where start-up firms are able to grow and prosper.

Indeed, at the turn of the year, David Cameron announced that the administration is to pump a further £30 million worth of funding into its Start-Up Loans programme over the course of the next three years.

Since its launch last October, the scheme has already loaned £1.5 million to 460 new companies through low-interest arrangements of around £2,500 and the government wants to strike around 100 agreements weekly from now on.

In addition, the prime minister has also decided to raise the age limit for people signing up from 24 to 30 and described the initiative represents “an important part of my mission to back aspiration”.

But what can entrepreneurs do to save money?

While setting up a new business is an extremely exciting prospect, the harsh reality of the current situation is that budding entrepreneurs will need to scrimp and save in their company’s early days.

However, there are several ways in which firm owners can keep their costs down.

First and foremost, Geoff Morris, chairman of the Entrepreneurs’ Forum, told Startups.co.uk that exploring every avenue of possible finance and investment is essential, as banks and building societies have become more reluctant to lend in recent years.

Therefore, Mr Morris urged people to loan money from friends and family at interest-free rates for as long as possible.

Secondly, there is no great need for a start-up company to waste valuable cash on renting out a glamorous office before they have established themselves in the market, while it is also very important for organisations to find the best possible deals on the essential equipment they need.

“Everything from paper clips to computers are your work tools, and everything from phone charges to business consultants count as business services. All these items are fair game for bootstrapping,” online resource Entrepreneur explained.

One mistake start-up owners can make is thinking that they need to hire plenty of full-time professionals to get their business off the ground.

However, Saif Bonar, UK manager of Freelancer.co.uk told Startups.co.uk that a better option may be to issue work to freelancers on a contract basis.

“With millions of people coming online in the developing world and looking for jobs, outsourcing tasks via the internet has never been easier or more affordable,” the expert noted.

Author Bio
Jonathan Gordon is a freelance copywriter who writes for a variety of websites, including a number of specialist professional negligence solicitors.