Simple Strategies to Save Costs When Starting a Trading Floor – Introduction
A major issue that prevent many people from starting a trading floor is cost. People are often scared of moving out of their comfort zone to start a floor because of the cost implications. However, with proper strategies, it is possible to start a successful trading floor while still cutting costs. Here are the simple strategies you can use to achieve this.
- Avoid an Office
The office costs are often very expensive and prohibitive to many people. In most cities, getting a small office will require you to spend a lot of money in rent and other service charges. To save on these costs, the best thing you can do is to avoid having an office. Instead, I recommend that you use your spare room. This can be your garage or spare room in your house. Remember, most prominent companies like Google and Microsoft were all started in garages.
- Use Free Online Materials
If you don’t have knowledge and expertise about trading, learning will be a very important thing. To learn, you can decide to pay for learning materials which are available in the internet or attend a course on the topics. To save money, I recommend that you use the freely available materials that are found in the internet. There are websites such as Baby Pips that have all the information to take you from a novice trader to an expert within a few months.
- Research about Internet Firms
You should also do a lot of research to find the best cost-effective internet company to use. Ideally, you want to have the best internet for your firm. Failure to this can expose you to bad internet which will cost you dearly. Therefore, you should do your research to find the best companies that provide good internet. You can do this by calling them or using the internet.
- Buy Used Computers
When running your trading floor, we recommend using the best latest computers. These will unlikely fail you. However, since the new computers will always be more expensive than the new ones, we recommend that you opt for used computers. You can buy these from local shops or from e-commerce companies like eBay. By using good quality used computers, you will be able to save a lot of money. As the trading floor gets more profitable, you will be able to afford new and better computers.
- Don’t Hire Subordinate Staff
As your trading floor grows, you will be able to afford hiring experienced professionals to do some work such as IT and cleaning. When starting, you don’t need to hire these people. Instead, we recommend that you do the work. If the floor gets dirty, clean it. If you need some IT work, do it or let your staff to do it. Later, you will be able to hire people to help you in all this.
- Make it 24 Hours
The financial market never sleeps. To make extra money, we recommend that you hire a few traders who will be working in the overnight shift as the rest of the team retires to bed. This will increase the amount of money you can use to improve your floor.