How exciting to be the entrepreneur you have always wanted to be! Blood, sweat and tears are not the only things that go into getting your business off the ground. Money, money and more money may seem to be a dominating issue. While money is definitely a giant factor in the success of your business, you can control how much you spend by being smart and savvy.
Below are tips to consider controlling these initial startup costs.
- Where to borrow your money- Do you necessarily have to get funding by borrowing from a bank where you have high interest to pay? Consider that you may have a lot of family and friends that believe in you and may be willing to loan you the money for little or no interest.
- Do you really need that nice, plush, expensive office space? This is where so many people really lose out on a ton of money. Why not consider working from your home or perhaps renting a small space. You can grow into a larger space when needed as your business grows. Also, there are plenty of meeting spaces to rent to hold your business meetings, interviews and such. Only do what you absolutely need to do at the beginning of your venture.
- Consider outsourcing personnel rather than having the expense of hiring people. When you hire someone, you are looking at a ton of expense. Workers compensation insurance, unemployment insurance and the list goes on and on. Until you really get into your business and know exactly that you can afford another worker, outsource what you need done. There are a ton of people looking to bid on jobs that they would like to do for you.
- Rent some equipment –Consider renting your equipment rather than buying the most expensive laptop, printer and copier at the beginning. Renting can help you realize what you need and what you don’t need. If things don’t work out, you have not invested a ton of money into fancy equipment.
- Take advantage of low cost or free marketing – There are so many ways to get free advertising now with social media. Consider starting your on page on Twitter, Facebook and LinkedIn. Have your friends share your page. Start your own blog or set up an email list. There is so much to do that is free now instead of initially having to invest in a huge marketing plan to promote your business.
- Consider using some free technology! – It takes time and effort to find some of the free things to take advantage of but in the long run, it will save you money. For example, some companies offer free conference calling. Also, consider things like online payment services and direct payment options for you to not incur late fees that you may forget about. There is also a lot of free small business software to try before you buy.
At Maxfilings, we are here to help you fulfill the legal requirements of forming an LLC or corporation, but we’re also here to encourage you and provide insight as you embark on this exciting new journey.