One of the best things about the culture that we live in now is that small businesses and startups thrive. More and more people are choosing to spend their money on small businesses rather than large corporations, and because of this, more and more people are choosing to start their own businesses. There are a lot of advantages to shopping exclusively with small businesses. Often, the prices are cheaper, the quality of product/goods/services is better, and you know that your money is going to someone passionate about their business, not some corporate schmuck who does no work but collects a fat paycheck anyway. Starting your own business is hard, and it can also be expensive, not to mention confusing. If you’re thinking about starting a business, in the process of opening your business or already own a successful business, here are a few ways that you can save costs on your startup.
Don’t pay for office space
Unless you absolutely have to rent out somewhere to conduct your business, don’t do it. If it’s possible for you to run it out of your house, that is going to be your best and cheapest option. This alone will save you thousands of dollars, which is money that you can invest in yourself and your business and is better spent there. If your home office isn’t large enough to store all of your merchandise, consider getting a storage unit instead of renting warehouse space. On average, a storage unit will only cost you a few hundred dollars maximum a month, whereas a warehouse is going to probably cost upwards of a thousand dollars a month. Again, this is one of the biggest opportunities you have to save money.
You probably feel like it’s impossible for you, a brand new small business who barely knows what they’re doing, to get someone else to invest their money in you. However, if you have a product that people love and are valuable and very easily profitable, it shouldn’t be hard for you to find investors for your small business. There are a few different ways to go about trying to find investors for your small business, whether you are seeking funds from capital groups or going through angel investors. With just a little bit of research, you can find a crowdfunding website that you think fits you and your business’s needs. Ideally, you’ll want a platform that allows you to share your products, and the passion you have that is driving your business, as well as introduce you to as many new investors as possible. You can also go directly to potential investors and angel investors. Just make sure that in any situation, you prepare appropriately.
Take advantage of tax deductions
A lot of new businesses make the mistake of not figuring out what expenses they can deduct until their first fiscal year is almost over. And by then, that’s a lot of money you could’ve kept track of to save on taxes that you didn’t. So make sure that you do a little bit of research as you start your business so you can take advantage of your tax deductions. You can deduct gas mileage, phone bills, electronic purchases, and even most travel expenses. There are also many marketing moves that you can make that will be amazingly cost-efficient. Just make sure that you’re targeting the appropriate audience. For example, there are many options for guerilla marketing, online relationships, and influencers, and there are plenty of things you can do to promote yourself, such as vehicle wraps. As long as the purchase is directly connected to your business, and you keep track of your receipts and purchases, you’ll be able to save money when it comes time to file your taxes.
Learn how to do things yourself
Eventually, as your business grows, you’ll want to hire employees and get help from others to make sure your business continues running smoothly. But for now, when you’re first starting out and trying to save money, try and handle as much of the operations by yourself as you can. Learn everything you can about marketing, product fulfillment, and anything else pertinent to your business. As you go, if there are things you really struggle at grasping, then you should hire out for people that are better equipped to handle those things. But by learning as much as you can while you’re small, you’ll be setting yourself up for success.