Blogs: Low overheads give start-ups the chance to thrive

Home working can help keep start-ups' overheads low during the early stages of the business.

When starting any company, it always makes sense to keep overheads to a minimum.

In simple terms, any money the company spends on infrastructure, materials and promotions will reduce the overall profit margin.

But then, companies need to spend money to make money - if you have no budget to create a product and service, and then market it, how can you attract customers?

The key for new firms is to avoid large expenses, such as on big office premises which they may not need at first.

The mid to long-term plan may be to hire staff and build up the company, but avoiding this overhead initially can help establish a firm financial footing.

With small companies able to use cloud computing to source advanced IT tools and create online marketing campaigns, home working may be viable for many.

This model may just give your start-up the breathing space it needs to put down roots, ahead of the growth plan getting put into action.

Posted by Sarah Parish 

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