START-UP businesses should be making use of value added services to decrease the cost of running their enterprises.
That’s according to Mags Ponnan (pictured), Head of the FNB Business Incubator, who added that entrepreneurs need to learn that running a cost heavy business only makes it harder for a new business to make a profit.
Going through an exercise to lean down the business model will create a far more sustainable way for the business to operate effectively with a focus on its core offering.
“We encourage entrepreneurs to start their business at the lowest cost and save wherever possible to give themselves freedom to invest the funds in areas of the business that are key to its success,” Ponnan said
He shared four areas where start-ups can cut costs:
- Start-up costs – Organisations such as FNB have assisted thousands of entrepreneurs by providing convenient online platforms which allow a business to register and do the name reservation without any hassle.
- Analytical tool – Given that the use of data is becoming more and more important in assisting businesses make informed decisions, entrepreneurs should look at investing into an analytical platform that will give a good overview of the business operations such as how much of cash goes through the business and the split in profits, costs and payments made by the business. Tools such as Insight360 are useful in this regard – assisting entrepreneurs to have a good grasp of key trends within business.
- Financial management tools – There are many financial management tools in the market, ranging from free to relatively affordable packages that will allow you to keep track of your business health. Getting a good package that is easy to use is crucial as a business owner. Free packages such as the Instant Accounting Financial Solutions from FNB could save an entrepreneur at least R5 000 per year.
- Marketing tool – There are many marketing strategies that an entrepreneur can use but at the early stage, the focus should be to get the biggest bang for buck when advertising products and services. Using free online tools such social media, digital targeting tools, registering on business directories and strategically placed content will allow a business to reach customers at little to no cost.
“The key takeout for entrepreneurs here should be to make use of the many value-added services that usually accompany a business bank account. These are tools and platforms that we offer FNB Business accountholders to decrease their monthly operating costs to a bare minimum, enabling them to invest money where it is most beneficial to the business bottom line,” Ponnan said.