When you’re starting a new business, one of the most important factors to consider is your expenses. You may not have a lot of money to work with or a finite amount of startup capital that’s going to disappear quickly. Luckily, there are a few easy ways you can lower your startup’s costs, making it much more likely that your new business will thrive into the future.
Find an Affordable Place to Work
A good place to start is where you’re going to work. Depending on the nature of your startup, you have a few options. If your startup is just you, and you can do most of the work from your computer, you may be able to work from home for free. This is obviously the most cost-efficient option so if you can work from home, you should definitely take advantage.
Other startups may not have that luxury. For example, if you plan on hosting meetings with potential clients, or don’t have enough room in your apartment for both you and your business partners, you may need a dedicated space for work. In that situation, you might want to explore shared co-working office locations. For instance, this shared office space in Los Angeles allows you to rent a range of office sizes by the month. You’d then have an upscale place to meet with clients, all at an affordable price. There are plenty of places to work on your startup, it’s just a matter of finding one that fits your budget and needs.
Make Smart Hires
One of the most important things for any new startup is hiring the right people. Hiring someone is a big expense, making it essential that you get it right. You want to make sure that you’re not only hiring people that you absolutely need but that you’re getting people who provide positive value to your new company.
When making new hires, explore all of your options. For example, social media may be a big part of your marketing strategy. However, since your company is still relatively new, it doesn’t involve much work yet. Rather than hiring a full-time employee to manage your social media accounts, handle this part yourself, hire someone part-time, or even outsource it to another organization. Each time you want to hire someone new, ask yourself if the value they’ll provide is more than the costs of hiring them.
Track Every Cent Spent
An important habit to establish early is tracking the money you spend. Tracking money is not only important for when tax season arrives or for ensuring that you have enough money to pay your bills. Closely tracking your business expenses also forces you to examine what you’re spending money on. It’s all too easy to charge things to your new company credit card, without thinking about what you’re buying. When you manually track each cent you spend, however, you develop a clearer picture of where you’re money is going. This will help you stay on top of your finances and make it less likely that you’ll spend more than you can afford.
Use Free Marketing Methods
Before long, you’re going to need to get the word out about your new startup. Marketing can quickly become one of your largest expenses if you’re not careful. Whenever possible, you should explore free marketing methods to help reduce your overall costs and make your business more efficient. For example, it’s free to create social media accounts and post content about your business. You can also easily encourage word-of-mouth marketing by creating a referral program that provides discounts to new customers. Finally, email marketing is a relatively low-cost marketing method that can yield amazing results if you do it right.
Buy Supplies Used and in Bulk
Finally, your new start-up is likely going to need some supplies. When shopping for supplies, look to buy used items as often as you can. Get a used desk and chair for your new office, rather than spending money on a brand-new set. Find some used computers for your employees or used furniture for your meeting space. Of course, you’ll want to thoroughly inspect everything before you buy it to ensure it’s in good shape. If you search hard enough, you should be able to find quality supplies at an affordable price.
Also, look to buy supplies in bulk. For example, if you need a lot of printer paper, don’t buy it one ream at a time. Buying in bulk may stress your current expenses but it will help with your long-term financial outlook. Just be sure that you’re going to use whatever you buy in bulk, as you don’t want your supplies to go to waste just for the sake of a small discount.