Starting a business, regardless of how small it is, still takes some capital. If you have a small capital, don’t wait until you have a big capital to start your business. A humble beginning is something you should be proud of since most successful businesses of today also started small and frugal.
There is safety in small beginnings and there is unlimited capital in the experience gained by growing. — Henry Ford
To help you minimize costs when starting your business, we’ve listed simple ways on how you can save money:
Consider being home-based first.
Not enough capital to rent an office space? No problem. You can start from the comfort of your own home. You don’t need to have a basement. You can start using an extra room, transform it into an office where you’ll be comfortable, and use it to run your business. It is way cheaper than renting out a commercial office space.
There are things to consider for this depending on the kind of business you have so if this is not an option for you, you can consider co-working spaces or offices.
Setup a creative yet cheap online store.
Going online doesn’t cost an arm and a leg. If it’s applicable for your business, you can start your own Shopify store and sell your products online.
It is also good to note that having an online store is also a good way to test the market first before investing big capital in renting a space for a physical storefront.
Hire capable freelancers.
Since you’re just starting your business, be aware that employing somebody on a permanent basis could create a lot of financial constraints for your starting capital because a permanent employee may need insurance, benefits, and allowances which you may not be able to afford.
For jobs or projects you can outsource, there are lots of freelancers who are more than capable of completing it at a more affordable rate. In this way, you’ll save cost on hiring a permanent employee.
Be a fan of free software.
Almost every aspect of a business such as accounting among many others is done by free software. There are tons of software which you can download for free. It could be missing some premium features but a small business has only a few things that need to be done and so the premium features might not be necessary for you during start-up.
Many free software downloads come with a 30-day free trial period after which one is required to buy. Since your aim is to save cash for your business, do not make a mistake of going ahead and buying it. You only need to uninstall it from your computer and then search online which will give you another 30-day free trial period after the installation process. This is how you will survive until your business is financially stable to buy software and maintain the updates of the software. If you want to save cash then free software is there for you.
Just doing simple things like switching your light fixtures to LED, powering down equipment when not in use, and going paperless, will help you save a lot of money overall.
Whatever kind of space your business is using, whether it’s a home business, office, storefront, the more energy efficient your space is, the lower utility costs you’re going to have.
Buy goods in bulk.
Vendors will give you large discounts when you buy goods in bulk. Buying in bulk is typically less expensive per unit. The goal is to purchase large quantities to reduce the per-unit price.
This is good if your business deals with goods that do not expire. Yes, you’ll pay more upfront but you’ll save more in the long run if you buy them in bulk. This will enable you to increase your business’ profit margin.
Be creative in advertising.
There are many ways on how you can advertise your business without spending a lot of money. You can put your company website on your letterhead, business cards and in e-mail signatures. Place your logo and company name in places where people would most likely see it, like on employee uniforms, promotional items you give away, invoices, company vehicles, and any press releases.
These are just some of the ways you can conserve money when starting your business. Be creative in spending your start-up capital without sacrificing quality. Always remember, for a business to be successful, you should also focus on minimizing costs as much as possible.