8 Essential Money Saving Tips for Your Hong Kong Business
Are you planning to start a new business in the freest economy of Hong Kong? If so, then you must be clear with one thing that money is the lifeblood of any business entity. As a matter of fact, our body requires the proper flow of blood in order to survive; similarly, money is needed for any business to come alive and stay alive.
If you want to do everything in the right manner at the right time, you need to have enough capital for your business. In short, in order to thrive your business entity in the cut-throat world of business, all the business managers are required to have financial management skills. Now you must be thinking, ‘what do you mean by the financial management skills?’.
Well, it’s about managing all the economic activities of your organization such as financial planning, the implementation of organizational and financial controls and the drawing up of financial statements. Once you can portrait the exact picture of your business and read the whole story from the figures, only then you can beat your rivals in the fierce competition of Hong Kong.
So, it’s all about money, when you have excellent control over it, then it will be beneficial for you to strive the business in the competition. Check out these eight tips and tricks in order to manage your finances for your business in Hong Kong.
#1 Tip- Engage Bartering in your Hong Kong Business
While starting a new business, the first thing that must be stressing you out is by which means you can conserve your cash within the business to ensure its growth. In order to grow your business, especially in the freest economy of Hong Kong, all the business managers are required to conserve their cash flow. And here comes the role of bartering in businesses. Well, bartering means business owners can easily exchange good for goods or goods for services and vice versa. Let’s dive deep into the concept by taking an example.
As an illustration- If you run a web design company and a marketing company approaches you to create an eye-catching website for them, then you can apply the bartering in that situation. In this way, you can create a website for them, and they can help you in marketing your business in the business sector of Hong Kong. In fact, in Hong Kong, several companies are applying this survival tactic in order to strive in the business world and save money. So, this first tip will not help you in keeping your money save in Hong Kong, but it will also assist you in putting back the money conserved back into the business to generate more cash.
#2 Tip- Leasing Equipment
The second money saving tip for your Hong Kong business is that always try to lease your office equipment. In most industries, office equipment takes a massive chunk from the budget of startups. This is the very first mistake done by several young startups while setting up the business.
At the earliest period of your business, you don’t have a lot of money to play around with. In order to strive in the competition, always try to own the equipment which is cost-effective. However, several organizations are hesitating to purchase second-hand equipment due to quality and reliability concerns. So, if you are facing the same situation, then you don’t need to worry, because, in Hong Kong, many companies are selling or leasing their furniture at the best prices.
All you need to look for trusted sellers from places that enforce buyer protection or a local shop. Remember to check online for reviews on a particular vendor. Avoid shady dealers that offer prices that are too good to be true.
#3 Tip- Don’t Hire Full-Time Employees
There is no denying the fact that our prime concern is to save as much as cash we can in the starting period of the business in Hong Kong. As a small business owner, employing part-time employees or freelancers in the organization could create burden on your business finances.
So, you must be thinking,’ How is it possible?’ Well, as you know that the permanent employee may need a pension, allowance, and even insurance.
Let’s take an example to get better understand about this idea- If somehow your computer system is creating an issue and you need to complete an urgent work, then you don’t have to hire a computer tech for that. Just call in a qualified IT guru to solve the problem within a few hours and get paid, and that is it.
Similarly, when it comes to accounting purposes, you will need that employee just for a short period, then you don’t need to hire a full-time employee. In fact, you can hire the accountant employee for that interval of time and complete all your finances and accounting work without any hassle. This is the ultimate way a small business can reduce costs and enhance their growth.
#4 Tip- Try to Invest Cash in Interest Bearing Accounts
Another money saving tip for your Hong Kong business is that try to invest your cash in interest-bearing accounts. It is always advisable to evaluate the perfect resources and the right time for the expansion of your business. If it is not on your side, then you don’t have to put back the profits into the company. In fact, you can save that money in an interest generating accounts for some time while evaluating the validity of the business expansion. This strategy is known as the buying time in business when thinking about the next step.
#5 Tip- Negotiate With Vendors
In order to survive in the cut-throat business world of Hong Kong, all the business managers are required to have excellent communication skills. If you are not able to communicate well with your vendors, then there are maximum chances that your rivals can take your place and generate more profit. In fact, you also need to have loyalty with the vendors regarding making payments.
Once you cross all these hurdles, the next step is to dictate the exact terms of your business that you want. You have to say on how the transaction between you and the vendor shall be done. First of all, negotiate for discounts on the goods that the vendors supply to you. In this way, you can easily be able to lower the costs of operating your organization and consequently, sell them at higher prices in order to boost the profits for your business.
More importantly, you can also deal with the vendors by taking the goods on credit terms and make the payments after all the goods are sold. This will be good since you will be selling the products on behalf of the vendors and enjoying the profits without even investing.
#6 Tip- Hire Carefully and Strategically
Another money saving tip for your Hong Kong business is that always pay keen intention while hiring the employees. There is no denying the fact that experienced employees are the roots of the business, but it comes at a cost. And if you own a small business, then it is not a good idea to hire experienced staff at a high salary.
But you don’t need to get worried about your employees, because, in Hong Kong, there are a plethora of efficient employees who can help you in upgrading your business. In fact, you can also hire individuals with moderate but efficient skills as interns first before absorbing them as employees on contract. This will make your business very productive in the long run without having incurred a lot of costs.
#7 Tip- Practice Branding And Financial Services
Finances and branding are the most important aspects of successful organizations. No matter, whether you are just starting your business or thinking of expanding it in the cut-throat competition of Hong Kong, don’t skimp in these areas. Through branding and marketing only, you can attract your ideal customers or clients towards your business and maintain your sales pipeline full. As per stated earlier, Money is the fuel or blood to the companies, so always make sure that you have someone keeping the engine running and mentoring you in spending and remittances to build longevity.8 Essential Money Saving Tips for Your Hong Kong Business Click To Tweet
#8 Tip- Do Something Yourself Before You Outsource It
And last but not the least, money saving tip for your Hong Kong business is that always try something yourself before even outsourcing in the market. Well, outsourcing is an excellent way to improve the productivity of your business, but sometimes, it costs higher than expected. So, it is better to do that work on your own, as compared to spend heavy cost on that. While doing all the things by your own, you will be able to understand how much resources and support you need for each task that you may consider delegating to members of the team or outsourcing to external suppliers.
No matter, whether you are planning to start a new business in the global hub of Asia- Hong Kong, or you have an existing business in flight; these eight tips will always help you in managing your cash flow. Money is the fuel of the company, so you need to take care of the fuel until you become successful in Hong Kong competitive market. If you are still wondering about your financial management, then Startupr is here for you. We will not only assist you in managing your finances, but we will also help you in incorporating and registering your business in Hong Kong. Contact us now! Good luck!