Ways to Save on Costs When Starting a Business

by Sean Bryant on September 1, 2017

Costs When Starting a Business

Starting a business is expensive. You need equipment, employees, space to work, technology and so much more just to get your organization off the ground. This is the time when every penny counts if you’re going to be successful. If you’re in the red when it comes to your business budget, the following are a few ways you can save money:

Work From Home

Renting an office space can be a huge chunk of your budget. With today’s technology, it’s an expense you can avoid. You can work out of your house (and claim it on your taxes) with the right equipment and software. Let your employees telecommute and work online and over the phone until you have enough saved up to afford a permanent office space. Use virtual meeting software to have video conferences, phone calls and messaging with all of your employees, no matter where you’re located. Store your documents in the cloud so everyone can work together in real time. A few paid programs are much easier on your budget than an office building.

Use Free Software

While you’ll need to pay for some software programs, there are plenty of free services you can take advantage of when you’re starting out. One of the most notable is Google Drive. You can store all of your documents, drafts, spreadsheets and presentations with this service and give your employees access to what they need. You never have to worry about working on the wrong version because everything is updated in real time.

Techradar recommends Trello for project management software. It lets you know what needs to get done, who’s working on what and what stage every part of your business is in. The free version lets you have unlimited boards, but if you need to upload a lot of files, you’ll eventually need to upgrade.

Hire Part-Time or Outsource

Salaries are another large expense you may not be able to afford when you’re just starting out. If you hire someone full time, you also need to consider insurance and other benefits that can add up quickly. Instead, hire people on a part-time or contract basis. For specialized skills, such as IT and accounting, hire a contract worker when needed. This way you won’t be wasting money when you don’t need them. You also can hire a few employees to work part-time to help you get your business up and running without having to worry about that extra costs that are associated with a full-time worker.

Buy Used, Rent and Barter

If you need to buy equipment to get started, see where you can save some money in the process. Speak to experts in your industry or people who use similar pieces of equipment and see if they’ll sell you used equipment for a lower price. Just make sure everything is in working order before you hand over any money. Renting also is a good option because you can pay for just what you need and nothing more. It also is scalable because you can rent more or less during the next period depending on your needs. Bartering also is a good option for your cash flow. Work with partners to exchange goods or services that are beneficial to both parties instead of money. For example, you can trade your marketing services for their web design expertise.

There is no limit on ways you can save money when starting a business. Think creatively about your needs and ways you can get by with less. You’ll be surprised at how quickly your budget will start to balance.

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Sean Bryant

Sean Bryant created OneSmartDollar.com in 2011 to help pass along his knowledge of finance and economics to others. After graduating from the University of Iowa with a degree in economics he worked as a construction superintendent before jumping into the world of finance. Sean has worked on the trade desk for a commodities brokerage firm, he was a project manager for an investment research company and was a CDO analyst at a big bank. That being said he brings a good understanding of the finance field to the One Smart Dollar community. When not working Sean and he wife are avid world travelers. He enjoys spending time with his daughter Colette and dog Charlie.

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