Having trouble raising finance for your business?

One of the most important lessons to learn in business is that 'money saved is money earned'.

It is crucial to the success of your business that your focus is not solely on turnover. Increasing your turnover is not the only way to increase your profits.

How to cut startup costs

Look at your business from every angle to make savings wherever you can. Cut down on expenditure at the same time as driving sales forward and bringing cash into the business.

• Get free advertising by convincing your local newspaper to write an interesting article on your business if you sell an unusual product or service.
• Cut your marketing costs by finding businesses that sell related products. Arrange to introduce each other's products to each other's customers. Collaborative marketing, such as running joint advertising campaigns, is a way to reduce costs.
• Use social media platforms to reach your target audience and build relationships with customers - see social media platforms.
• Engage with social media influencers - online influencers will promote your brand and help you reach your audience in a convincing way. Done well, it can be more persuasive than traditional advertising - see influencer marketing.
• Go to free networking events as this can help you raise your profile, meet new customers and suppliers. You can also share ideas and knowledge and even find finance. Use our events finder to find local networking events near you.

Reducing your business spending reflects on how many sales you need to make in order for your business to survive. If you can save in one area, then it will reflect in the other. For more information on ways to save costs, see creative ways to succeed in business.

However, you do need to be careful where you make your cutbacks. Making drastic cuts in the wrong areas could create problems including reduced service or quality or fewer sales as a result of insufficient marketing.