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Starting a new business can be costly, and start-up capital can be challenging to come by. However, if you are strategic and forward-thinking in these early days, you can save thousands of dollars, putting you on the path to long-term success. So, what are the secrets to spending small while getting impressive results? We have gathered five tips to help you on your way:
Cut the Office Overheads
Renting and furnishing office space is the most expensive overhead for most businesses, which is why you hear about start-ups running out of people’s garage. While a home office is a practical solution when you first start out, it doesn’t present the most professional image to your new clients. The answer? You can use serviced offices or virtual offices
for a fraction of the cost, paying on a needs-basis. They offer everything from complete office spaces with flexible terms, to upmarket meeting spaces at convenient inner-city business district addresses. You can even secure just a mailing address and comprehensive secretarial service. The advantage is that you have the professional image and prestigious address, at a fraction of the cost of a traditional lease arrangement.
Barter Your Services
Consider whether you might be able to chat with someone in your network about a barter arrangement. If you can offer your services in exchange for theirs, you might be able to come to a mutually beneficial agreement. Using barter whenever possible will leave more money in the coffers for the other costs that you encounter.
When searching for a company to assist you with a new logo, a website or to design your business card, consider working with a freelancer. Thanks to low overheads, their fees are generally more manageable so you can get a good result for a more modest investment. Make sure that you check their portfolio before committing, so you are confident in their skills. Time equals money when you are paying an hourly rate or for rounds of changes, so do your research first. It is helpful to collate images and examples of the style or look you prefer. Then, talk through your requirements thoroughly to provide as thorough a brief as possible. One of the biggest mistakes people make with graphic and web designers is assuming they can read your mind!
Investigate Grants and Small Business Initiatives
Most Governments offer support for small businesses trying to find their feet. Check your state government website to find out which services may be available to you. Your company might be eligible for grants, tax concessions or low-interest loans. Other available services often include; guidance to ensure that you comply with all financial and legal requirements or even local or online seminars to assist budding entrepreneurs. It’s worth taking advantage of every avenue for assistance in the early days.
Make sure that you are very strict to differentiate between needs and wants in the initial stages of your business growth. It’s easy to get carried away by your vision of the end goal, so try to distil the expenses that stand between you and perfection into manageable chunks. Consider twelve-month, two-year and five-year goals and figure out which investments can wait. There are always unexpected expenses that can crop up, so if you take a frugal approach, you should be able to navigate those surprises with ease.
Small savings early on may turn out to have a significant impact by helping your business become more financially secure. Be smart and strategic from the outset, and you will be on the path to success.