1 August

Keeping Start-Up Costs at a Minimum: Tips for New Business Owners

When you’re contemplating a start-up, few things are as vital as budget and costs. In fact, often times a budget can either make or break a decision to begin your venture – but it shouldn’t. If you find yourself fretting over your start-up bottom line, rest assured, there are ways to keep your costs under control.

Keeping Start-Up Costs in Check

Chances are, if you’re looking at budgets and start-up costs, you’ve already done your fair share of research on what to expect. You’ve also likely heard that you need to have a solid plan in place in order to give your venture a clear shot at success. So, what does that mean exactly?

For starters, yes, you need to create a budget that takes as many factors into consideration as possible – but that’s not all. When it comes time to putting your budget and plan in motion, there are ways to be smart about your spending that will help you keep your costs in check.

Buy Smart

It may seem like a no-brainer, but before you go writing checks for your start-up needs, make sure you shop around. Just like you would take advantage of holiday sales or special discounts for everything else in your personal life, you need to do the same with your business.

Research area businesses that may be having a close-out sale, or maybe a going-out-of-business sale can help you score some quality used pieces on a budget-friendly purchase. It’s always good to check tag sales and estate sales or auctions for items you may need as well. Remember to keep things in check by ensuring you’re truly buying what you need, and not just what is convenient or something that lured you in for “extras” you could really do without right away.

Start Simply

In the beginning, you’ll likely have a difficult time keeping up with the expenses of bringing on a full-time (or even part-time) staff. One way to help off-set this expense is by avoiding it altogether. How? Try subcontracting work out on an as-needed basis.

There are plenty of sites and sources for employees looking to work on a contract-only basis, meaning you simply pay for what you need without all the overhead for insurance premiums and salaries. As time goes on and you get more established, you can look to add more permanent staff members later.

Alternative Spaces

Being budget conscious about your start-up equipment and staff needs are a large part of the puzzle, but there’s another one you need to focus on as well: your business space. Starting your own business doesn’t mean you need to go out shopping for primo store fronts or the typical brick-and-mortar buildings.

There is a plethora of options out there for those just starting out in their business ventures today (and even for those well-established ones who are looking for a more budget-friendly avenue). Many choose to carve out a space in their residence to help cut costs that way, but there’s a third option to consider as well: coworking spaces.

Coworking spaces can be a great way to keep your start-up costs in check because they offer a fantastic business setting without the fantastic pricing. Essentially, you share a communal office area that comes complete with all your basic needs (so you’ll cut down on equipment expense as well) and offers a professional atmosphere to present to clients.

Overall, there are a number of ways you can stay under budget on your start-up, you just need to be smart and resourceful about it. Do your research, stick to what you need, and explore options that give you the most bang for your buck.