Finding ways to cut expenses while starting your own business can sometimes be the difference between success and failure. With seemingly bottomless startup expenses, a few wisely avoided costs can set you up the right way - instead of putting you immediately in the red.
Make a budget and stick to it. It is impossible to predict every expense that will crop up, but do your best to realistically plan your finances ahead while leaving a little wiggle room for unforeseen costs. Having a plan for how you will spend your money will help you minimize costs even if you don't observe it to the letter.
Use social networking
At the beginning, it may be tempting to blanket your business' location in promotional materials to get customers to line up. However, the money you'd need to spend to engage in this full-on marketing blitz might better be spent on inventory and materials. Instead, start early with a social media campaign. By creating a social media strategy, you can get your name out there on Twitter and Facebook for free, and wait to target the areas you really need to hit until you've got a little more money in your pocket.
You are going to have a lot of equipment to buy, so make sure you truly need something before you write the check. If you can make do without some hardware - it can help you spread out your costs more evenly. For example, if your business needs to send or receive faxes, you might consider getting an online fax service instead of shelling out hundreds of dollars for a machine, not to mention the ongoing costs for a phone line and materials such as toner. By using internet faxing, you can get all of the same capabilities for a low monthly rate instead of a huge upfront investment.
Start with revenue-producing purchases
Before you start buying the things you want for your business down the road, focus on initial investments that will immediately lead to returns. Making sure your inventory is stocked and your staff is capable will help you make the money you'll need for the long-term. In this situation, doing things like forgoing the fax machine for a fax to email service will help you start making money without requiring an early round of massive purchases.
By planning ahead and focusing only on integral investments, you can help prepare your business for a stable, profitable existence.
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