The idea of being your own boss, setting the standards for your own company and reaping the benefit of your company’s success sounds like a dream come true, doesn’t it?
To many, the initial process alone seems daunting and, unfortunately, not worth the risk. Taking out loans, fronting the money, finding support in the community and maybe even quitting your stable day job can be enough to discourage people from moving forward. It’s definitely not for everyone – but if it is for you, you’ll want to be smart about the process.
If you’re feeling hungry for something new and you succeed in your venture, you may find that the rewards are worth the initial stress.
One of the aspects of running a business that concerns prospective entrepreneurs the most is the financial portion of the risk. Luckily, there are plenty of ways to stay mindful and reduce costs while you’re getting on your feet.
Run Your Business from Home
Depending on the type of business you’re running, it may be smart to start out in a home office. Renting or leasing an outside space will not only mean paying the monthly costs for space itself, but it will also lead to additional utility bills you wouldn’t have if you combined your living and work spaces into one.
To stay productive in your home office, be sure to restrict one area of your house to work hours only. This will help you create a divide between your personal and work life.
If you don’t have enough space in your home office to host your employees, make them work from home until you outgrow this practice and need to centralize. Google Hangouts and Skype make virtual meetings a breeze and will help you stay connected during the workday.
Of course, it’s tempting to purchase brand new equipment, furniture, tools, etc. to get your business going and to prove yourself to customers and clients. But this is one major way you can remain under budget and have leftover money for the things you absolutely need. Thrifting or purchasing used equipment from websites like Craigslist or the Facebook Marketplace could potentially cut your budget in half when it comes to your basic needs.
Avoid Hiring Full-Time Employees
While it’s important not to spread yourself too thin, it’s also important not to spend money on unnecessary personnel. Instead of adding full-time members to your team, which will include the costs of health insurance, legal fees, and other costs, consider hiring part-time employees or temporary contract positions.
Many of the essential duties in the beginning months will be things like accounting, marketing, and other things to get you off the ground that won’t require as much time down the road. Outsourcing a freelancer to help with branding, set your budget and get you on the right track will likely only require approximately three months of service from those experts and leave you with a one-time fee that is much more manageable than a full-time commitment.
Buy in Bulk
A business membership to Sam’s Club or Costco is totally worth it when you’re starting up. These stores are notorious for their low prices, bulk purchasing options and they have a little bit of everything. Flash drives, batteries, toilet paper, snacks, furniture and so much more can all be purchased using your business membership at a much lower price than you can get to other places. You’ll be surprised at how much you save.
Marketing is changing and, as a result, it’s also becoming more accessible. Before spending big amounts of money on traditional forms of advertising, be sure to set yourself up with a website, social media accounts for your business, friends and family members who can spread the word for free on your behalf and, if needed, set up a small budget for Facebook advertising. Boosting posts is one simple and effective way to spread your startup’s message without spending too much.
All your business costs will be tax deductible including everything from the space you use in your home to run your business to the office supplies you purchased to stay organized. When you total all your expenses up at the end of the year, you will be glad you saved every receipt to get you to great results when tax season rolls around.
Close attention to each dollar spent in the beginning will set you up for success in the end. These cost-effective tips will not only help you save money, but they will give you peace of mind that you have done everything in your power to succeed so you can focus on big ideas, big initiatives and even bigger dreams for yourself and your company.