6 Ways to Save Money When Starting a Business

Financing a business can be difficult. That’s exactly why you shouldn’t waste money on unnecessary things, especially in the beginning. However, keeping track of all expenses when you’re just starting up can get overwhelming. Instead, make it a point to reduce expenses when you’re crafting your business strategy. Check out this article for a few ways to save money when getting your business off the ground.

Every small business owner dreams of being successful and turning a profit right after launch. Unfortunately, that rarely happens. You have to spend money to make money, and raising enough startup funds is usually a struggle to begin with. Plus, if you get carried away, expenses will soon add up. An unneeded office perk here, an impulse buy there, and you will soon realize that you severely underestimated how much money you need to get your business up and running.

Fortunately, there are several ways to keep expenses low and avoid unnecessary costs. When I started my first business, my setup was as basic as it could be: me and two friends spending entire weekends drafting strategies and working from my garage. It was in no way glamorous, but we managed to build a small enterprise that attracted investors and clients. All without a fancy office to hold meetings or expensive business cards to dazzle potential customers.

As long as you’re truly passionate about your entrepreneurial endeavor, you will be able to find creative ways to get your business off the ground without breaking the bank. Here are a few ideas to get you inspired.

1.  Share Workplaces

We live in the technology era, so having an office isn’t mandatory anymore. You could rent a space in a coworking place or hire a distributed team. You could work from a coffee shop. You could set up a home office and ask your employees to join you, especially when their number is in the single digits. Renting an office can seriously drain your budget; and as long as you don’t need too much equipment to design your product, it’s completely unnecessary. Ultimately, if you need to hold important business meetings and really impress potential clients, you can always rent a conference room for the day.

2.  Outsource

Having reliable people by your side can be crucial. However, make sure those people are actually needed. Hiring a full-time recruiter is pointless if you only need two-three people by your side. Consider outsourcing certain operations or hire freelancers when needed. Hiring a full-time IT specialist, for instance, is costly, and isn’t particularly advised when you lead a small team. Look for a freelance IT admin instead whom you can pay by the hour. They can access your devices remotely whenever needed and provide support. Proxy Networks has a great article on how to ensure security when using remote access software. You can check it out here.

3.  Ask For Money In Advance

This might seem ludicrous, but it can actually work. If you’re designing a new product that’s already creating buzz, you could accept pre-orders and use that money to get your business off the ground. Alternatively, you can use sites like Kickstarter and GoFundMe to raise capital and do some market research at the same time.

4.  Don’t Get Carried Away With Advertising

It’s important to market your business endeavors, but don’t go overboard. Social media, PPC campaigns, attending networking events – these are all effective and inexpensive ways to tell interested parties about your product/service. Buying a huge billboard or airing an ad on prime-time TV will do the trick as well, sure, but they will also drain your budget.

This applies to marketing materials as well. Choosing a logo, designing business cards, and setting up your website are all fun activities. Unfortunately, getting too caught up in what color your business card should be or which well-known designer to hire for your logo doesn’t make you money. Start small.

5.  Partner Up With Other Businesses

If you’re starting a small business and you’re not good at accounting, maybe someone in your network owns an accounting practice. What if they helped with accounting and you would help them with something else? Bartering services is a great way to keep costs low and develop fruitful relationships with other entrepreneurs in your community. If you’re not sure where to start, join an incubator or entrepreneurship organization.

6.  Negotiate Everything

Always ask for discounts, whether we’re talking about bank fees, marketing materials, or insurance fees. If the vendor sees you a solid client for the future, they might be willing to comply. At the end of the day, what’s the worst that could happen? There’s no harm in asking.

Small business owners are always looking for sneaky ways to save money and increase profits. Use the tips above and you’re off to a great start. As long as you thoughtfully budget your startup funds and keep track of expenses, you increase your chances of turning a profit sooner than anticipated.