Starting a business is such an exciting event in your life. It can also easily be one of the most stressful endeavors. Starting a small business costs a lot of money, often more than you think that it will. It’s not just the cost of supplies and products, but you also have to pay to run your website, pay for an office space, and marketing, among a dozen other things. It can easily become overwhelming and seem impossible to embark upon. However, there are ways that you can save, and start your small business in a cost effective way.
Buy in bulk to save money
This tip can apply to a number of different aspects of your business. While it’s true that buying your products, or the supplies you need to create products, in bulk will be the cheapest option, that’s not the only thing that you can buy in bulk to save money. Find a good place to get your business cards for example, and ask them about bulk discounts. Often, someone will offer hefty discounts for ordering in bulk. While it may seem like a lot of money to spend initially, it will last you a lot longer, and will prevent you from needing to spend money on those expenses for a few months. That peace of mind because you’re prepared is also very valuable.
Try to save on warehouse space
Does your business need a warehouse storage space? Instead of paying for an expensive warehouse or office space, consider renting out a storage unit instead! The monthly rate is usually considerably cheaper, and if you can make that situation work, it will save you a lot of money. We recommend storing everything in your storage unit, and then make daily trips to the unit to pick up the things you need, and do the rest of the business work from your home office. However, some people like to request a storage unit with electricity, and set up an office space in their storage unit to save money! Here are some other creative ways that people use a storage unit to cut back on expenses.
Keep track of your expenses
In the first year of business, there are a lot of expenses and start up costs. Make sure that you keep track of all of them! Save all of your receipts, order summaries, and credit card statements. When you file your taxes, it will be helpful to have all of these expenses in one spot that is easy to refer to. You often qualify for a tax break due to the cost of a startup, but those benefits are only valid in your first year in business! If you don’t keep track of these expenses, you may not be qualified to accept these benefits. If you aren’t sure if something is tax deductible, save the receipts anyway, and then ask your accountant. They will appreciate having access to everything they may need to help you get the most out of your tax return. This can include things like cost of product, office supplies, a benefit towards your mortgage if you work from home, and expenses relating to your vehicle. Just make sure to keep track of everything.
Outsource through freelancers
If you find yourself needing to outsource some of your tasks, but aren’t ready to hire a full time employee, consider hiring a freelancer. This way you don’t have to pay someone hourly, you can pay them per project. This can help keep your expenses lower until you can afford to hire an employee full time.
Promote wisely and creatively
Okay, you don’t have the budget of Coca-Cola in order to get your brand name out there. That’s okay, because you really don’t need a huge budget in order to get your name in the right place. Wherever possible, use targeting data in order to get information about your company to the right people, instead of just to as many people as possible. Be creative about the marketing and promotions that you do! It’s not just a matter of signing up for mailers and paying someone a ton of money to promote your website. Utilize the power of social media, guerrilla marketing, and one-on-one contact. Don’t just use business cards to remind people of who you are; consider using fun promotional swag for networking and conferences.
Buy used office equipment
There will come a time that you can go buy brand new office equipment, but that day is not today. There’s nothing wrong with buying lightly used equipment. Just make sure to be thorough in your inspection of the equipment to make sure it functions properly before you purchase it, since it won’t come with any sort of warranty. A few things you can get used in pretty good condition would be a computer, printer, and even most of your office furniture. Check out all of the local thrift and consignment shops, as well as yard sale boards online, like Craigslist.