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How to save money as a start up

How to save money as a start upimage

Starting a company isn’t cheap, that’s why entrepreneurs have to be critical about where to spend their money. And because start ups are usually stuck in a maze of rules and regulations it’s easy to miss all the potential financial wins along the way. There are simple tricks you can use when finding an office (or when you have one) but don’t forget the fiscal rules that can be beneficial for you and your bottom line. Let us give you some tips;

1.Location, location, location.

In essence you can already start saving up when you start looking for an office. The larger cities are attractive of course, with their tall and beautiful buildings in the most artistic shapes, and have Amsterdam or Rotterdam as your address on your business card is almost reason enough. But everything has a price tag and so does an A-list location. This is partly why it’s so attractive to settle there and have the prizes gone way up.

A good way of saving up every month is getting an office right outside a big city or large towns, like satellite cities. If that’s a little too far for your liking then try to find a place outside of the city centre. Think about Ijburg in Amsterdam, but also Leidsche Rijn in Utrecht for instance!

2.Don’t rent to much!

So, you found your location? Then take a good look at how much space you’re going to need to fit your team. It happens al the time that companies have no actual clue how many square meters is enough. So, people go for too much instead of too little, and end up with an office space way too big for them with rent that is much higher than it needs to be.

Don’t underestimate the importance of a large office space of course, but with a limited budget available a lot can be saved by just spending time calculating how much surface space is acceptable without limiting your team. In the NEN (The NEtherlands Norm) 1824 of the Nederlands Normalisatie Instituut the minimum requirements for a workplace is 8 square meters per workspace. In the revised version this is a sum of the parts required for a workspace; a cabinet is considered 1 square meter, a desk 1 square meter and an employee is good for 4 square meters.

3.All-inclusive and full service

When the rest is all-inclusive, you’re basically set. Electricity, gas, water, light, internet and telephone are standard in these packages. Sometimes you can even be lucky and have the meeting rooms or lunch be included! Furnished offices are included here more and more. When it comes to basic rent, be on your guard because they can be misleading. The amount you pay will guaranteed be higher and that can be quite a blow to your tightly wound budget. We won’t deny that it can be shocking to see the all-in prices but if all these – for an office pretty essential – things are added to the base price it can ramp up really quick. It’ll be good to know what you can and can’t to get yourself. Like furniture, which can easily cost 50 euro per month to rent. If you have your own furniture you can easily save up to 600 euro per year.

4.Deductibles

Deductibles can reduce the costs of your company significantly. Let’s be honest, unlike a home office, when renting a workplace, you can get a significant benefit from the tax authorities. If you have an office space remember that the rent, refurbishment costs, furnishing costs and energy costs are all deductible. In addition, insurance costs and cleaning costs can also be claimed. When up and running there are many more deductibles. Like marketing costs for your company, the costs for print such as leaflets of business cards and the costs that are needed to maintain knowledge and developments in the way of courses, training and / or seminars. If you really want to go all the way, transport costs, office supplies and postage costs are all tax-deductible. Take advantage of it, even though the cost of some items are still so small, many of those small things can amount to a lot in the long term.

5.Coworking space

And then there are coworking spaces. More and more offices have special spaces or are specialized in renting out coworking spaces for starting entrepreneurs and freelancers. These spaces, also known as coworking spaces, offer workplaces for a small team that are inspired by working in a busy environment and do not mind sharing the floor with other (starting) companies. If you decide to go for one of these you’ll definitely spend less. Many costs are tax deductible because you do not have a home office, the rent is many times lower than if you rent a private office and due to the increase in the number of small and starting companies, more and more coworking spaces are being offered in both large and small towns. You‘ll have to accept working in a shared space, but if that doesn't bother you, a coworking space is the ideal option.