7 Money-Saving Tips for Launching a BusinessMar 23rd Small Business Marketing
Congratulations, you’re getting a business off the ground. All the planning and projecting is in the works. And the costs are adding up. Before you watch any more money drain out of your new venture, get the ins and outs of how to save money when you launch a business.
One search for how to launch a business and you’ll likely find more guides and ideas than you ever thought possible. Some are ‘cheap’ or ‘free’ or ‘low cost’. But let’s face it, launching a business costs a lot of money. A good chunk of it is unavoidable. But the good news is that some of the costs can be trimmed.
Take these tips for cutting the right corners and maximizing your bottom line.
Money Savings Tips for Launching a Business
Be vigilant about what money is coming in and where the money going out is actually going.
1. Use low cost phone numbers
Gone are the days of limited choice when it comes to phone service. With online phone number providers, you can set up a business phone number in a matter of minutes. And if you utilize a remote workforce, they can all be added to your phone plan, use their existing cell phone and get a business phone number too.
2. Watch expenses like a hawk
There’s a saying that $1 saved is equivalent to $3 earned. Between taxes, insurance and employees, when you launch a business, you are stepping into an expense-filled situation so it makes sense to watch and cut as needed. Search for lower cost options (even on things from bathroom supplies to switching from water bottles to large jugs) and cut it if it’s unnecessary.
3. Focus on only high ROI marketing & advertising
Marketing & advertising are tough because you have to do it to bring in more customers but they can eat into the budget incredibly fast. That’s why it’s essential to check and double check return on investment. What’s been working? How much does it cost? Can it be trimmed or is it already a high ROI/low cost tactic?
4. Maximize (or Minimize) your space
This is highly dependent on your type of business. With office space running between $8 – $23/ sq. ft., establishing a big office space to house all of your employees is a huge expense. The rise of co-working spaces and virtual offices makes this an expense that could save your business a lot in terms of square feet space and general office expenses. See the point below…
5. Use a variable workforce
Employee costs will be one, if not the highest cost line items of your business. That’s why it can really pay off to use a variable workforce. This type of workforce reduces your costs because they are not actual employees. They are independent contractors and provide a service to your business (and are generally remote workers, so no office space needed!).
We are not employee law experts, consult an attorney for your specific situation.
6. Price shop on the lowest cost for utilities
If you’ve ever price shopped for utilities as a residential customer, you’ve seen the difference even a few cents can make. The impact is even greater on a business location. Check a site like Utility Rate Database for rates in your area.
Keep an eye on usage and check your rates often.
7. Set up an account with FedEx
If you ship or receive goods, one of the first things you’ll want to do is set up an account with a shipping provider. With a company like FedEx, you’ll get a discounted shipping rate that can dramatically add to your bottom line.
The costs of doing business will continue to rise, but it doesn’t mean there won’t be ways to save money with your business. Be vigilant about expenses. Take stock of what’s working and see how you can shave a few dollars here and there. Even ‘fixed’ expenses may have some wiggle room.
Check out these other money saving ideas next!