I am happy to bring you this guest post today on ways to save money if you are starting a small business. With the New Year just ahead, now may be the time to actually take the leap and start your own business. Please see my disclosure statement for more information regarding guest posts.
If you are looking to start a small business, you’ll have lots of upfront costs to consider. While it’s true that many of your expenses will be business related, and therefore tax deductible, it’s still a good idea to be thrifty when watching your business grow. Here are a few ways you can keep your expenses down, while allowing your small business room to grow:
Look For Free Advertising
Think outside the box when it comes to advertising. Yes, you will need to have a formal marketing plan, but that doesn’t mean it will have to cost you big bucks. Take every opportunity to get the word out about your business and build your brand at the same time.
Track All Expenses and Question All Expenses
One of the first steps in starting a successful business is to know what you are spending. You must have a system for tracking all your business related expenses. At the same time, you’ll want to question all expenses asking “Is this necessary” and “is this the best price”. Ask for discounts from suppliers and get several quotes when making larger purchases. Each penny you save will be another penny you can re-invest into your business.
Learn To Barter
When you first start a business, your available cash may be low. Learn to barter for items and services that you need. It’s a great way to not only save money, but to build relationships with others who can help your business to grow.
Keep Office Expenses Low
Ideally, running your business out of your home or garage will be the most economical. However, sometimes you just can’t do that so be sure to explore other office space solutions.
Keep Your Debt Low
This goes hand in hand with the item mentioned above regarding tracking your expenses. While you will most likely need to finance some portions of your business, keep in mind that many successful businesses have been started on a shoestring. Racking up loads of debt doesn’t necessarily equate to a successful business operation. Besides, having to pay large amounts of interest will eat into the profit you make.
Make Do With What You Have
Don’t make the mistake of thinking you need to have the newest computer hardware/software, cell phone, or other gadget. Upgrade when you need to, not when you want to.
Save money right from the start and make a decision to go paperless. It will mean less paper to file and keep track of, less printer ink to purchase, and will reduce mailing costs if you go to email only.