5 Ways to Save Money on Startup Costs

Starting a business can be expensive, but with a little creativity and “out-of-the-box” thinking, there are ways to save money on your startup costs.

Here are five simple ways to help you cut down on expenses when you’re on a small budget.

1. Keep your day job for as long as you can.

Starting up your own business might be your dream, but it requires a lot of capital at the beginning. Since any money you make should be reinvested into your business, you most likely won’t be able to pay yourself a salary when you’re just getting started. If it’s possible, you might want to consider keeping your day job or going part-time so you are still making enough money to support yourself until the profits start rolling in.

2. Consider used equipment.

When you're just starting your business, you’ll probably have limited resources to dedicate to purchasing equipment. Rather than splurging on brand new equipment right out of the gate, consider researching used equipment markets for the pieces you need. Government auctions, such as GSA Auctions, are a possible resource for used service and governmental industrial equipment.

[READ MORE: Government Resources for Small Business Owners]

3. Barter services with other entrepreneurs.

To keep more of your profits in-house, utilize the barter system to trade your products and services with other businesses. For example, if you’re a roofer who wants to launch a business website, you may be able to work out a deal with a web designer to repair their roof in exchange for creating a website. You can also expand your bartering by joining an official barter exchange or drawing up written barter arrangements with other solopreneurs and small business owners. If you go this route, be sure to keep meticulous records, as you’ll need to report your barter agreements on your business taxes.

4. Outsource back-end tasks to contractors instead of hiring employees.

While you may have grand plans for hiring dedicated staff members at some point, you might not be able to do so when you’re working to get your business off the ground. Rather than hiring full-time staff, you can keep costs down by hiring independent contractors since you won’t have to provide employee benefits for the contractors. One of the best ways to find top-notch freelancers, especially for administrative and marketing tasks, is using freelance marketplaces like Fiverr.

5. Get help with your finances.

Tracking your cash flow for your business can save you from paying late fees or missing bill payments altogether. As a small business owner, it’s so important to monitor your cash flow. To keep impeccable records, track your cash flow and expenses from your very first day of operations.

If you’re concerned about keeping track of your finances, you might want to hire professional help, such as Bookkeeper360, a technology-driven accounting solution that uses 100% U.S.-based teams to specialize in accounting, payroll, tax compliance, and advisory.

For more tips and resources to help get your small business up and running, check out My Dream Bridge’s blog.

For more information and resources for aspiring solopreneurs and small business owners, head on over to www.mydreambridge.com.

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