Starting a new business can be an exciting, yet stressful at the same time. There are so many legal aspects of the business to work on, along with the expenses that come your way. You are dealing with so many things left and right, and it can get overwhelming right from the start. This is particularly true if you are on a tight budget, since you cannot simply keep spending on every little thing that has something to do with getting your business to take off.
Naturally, your cash is mostly going on an outflow direction instead of in. This can be hard for those who have a limited amount of money for spending. As much as possible, you want to increase your profits, or at least break even the soonest you can then begin making more money as you go along.
With this in mind, our tips on how to save money during the initial phase of setting up a business should come in handy for you. We have lined up practical ideas to guide you on how to minimize your expenditures and have some cash coming in your way or you can always simply opt for instant personal loan from a licensed money lender to kick start. Then, you can stop stressing out about a billion things on your plate once you see yourself making profits slowly, but steadily.
1. Consider the magic – and economical value – of cheap or free advertising.
Your business is new, and you have to find a way to get the word out about it. Should you opt for something major and hire a prestigious PR company for marketing and advertising, or is it smarter to choose a cheaper route in trying to bring some customers in to your business? The first option sounds more appealing for sure, but this also comes with a high price tag. If you want a fancy commercial or billboard ads with a ton of bling, you will have to pay a price to make these happen – and it may not be too pleasant watching your dollar go to a certain direction too quickly.
Fortunately, modern technology is working on our behalf in spreading the word about businesses – both old and new. Sure, print ads and radio or TV commercials do not lose their touch when it comes to advertising, but there are other cheaper options for use. For a startup on a shoestring budget, you may consider exploring further on the benefits and powers of online classifieds. While these are not for free sometimes (unless you create a FB page and post updates about your business without paying for ads), you can surely let some people know about your business. If you have some money to spend, though, you may go for cheaper advertising companies online who can help you reach out to more people.
2. Hire only when it is truly necessary.
You are in the testing phase of your business, and this includes checking the amount of help and labor you need to get everything all set up. This is why you may want to think things through and determine if hiring a marketing team is a necessity at this point, or if it may be more practical to handle this task by yourself for now.
Unless you are backed by a large sum of money, there should be no issue with getting a marketing team right away. But if your goal is to save some money and boost your profits, then it may be better to simply do the job yourself for now and improve your skills on advertising and marketing. Otherwise, you need to allot a certain budget for the wages of these people, which can be a huge stretch on your budget.
In case you think you have little time or energy to devote on learning the skill yourself, acquiring low-cost labor can be a good option, too. Go for college interns who may be willing to be trained, yet not requiring a massive sum of money for wages. If you think about it, this can be a win-win situation since you can give them a solid recommendation as they receive training, while at the same time keeping your costs to a minimum.
3. Know where your money goes all the time.
Having a limited working budget can be stressful for startup business owners. You always have to be aware of your expenses and the amount of cash that comes with it. So, planning your budget is a smart thing to do, particularly if you have a limited knowledge and experience on accounting.
If you need some help on budgeting, yet you do not want to hire an accountant that adds to your expenses, then it makes sense to check out a reliable budgeting software or tool. There are numerous options available instead of the usual Excel spreadsheet. For instance, there is this tool called inDinero, which is a type of accounting software that allows you to run and manage your startup in a more organized manner. Using this software, you can safeguard all of your transactions and cashflow, as well as your expenses. It even connects your bank accounts, so this should help you visualize and know for sure where your cash goes. Handling taxes and payrolls can also be done using this tool.
4. Consider holding online meetings instead of face-to-face ones.
With globalization continuously on the rise, there are faster, more efficient, and cheaper ways to connect with the world rather than holding a meeting the old-fashioned way. International affairs and activities are more accessible now, thanks to high-speed internet and various online tools.
If your clients or employees are in other parts of the globe, you can hold your meetings via a Facebook video chat or Skype video chat and not have to pay massive fees for it. The only thing you have to arrange is the time for the online meeting since there are different time zones to think about before setting a date for the meeting. Even if you only have your laptop, you can have your online meeting all set up. Just be sure to use certain tools or accessories during the chat to make communication much clearer and more effective despite the different locations of your clients.
5. Go cheaper on your workspace.
Renting an office space can mean hundreds of dollars to spend every month. In Singapore, the rates of office spaces are astronomical, unless you are keen on finding one at a cheaper price. This is why you may want to share a space or split the rent with another business who is using the same area. After all, if you are a startup and a small business at that, there is no need to rent a massive office space for a ton of money. This is simply impractical to do, and you run the risk of going through serious debts even before you can start making money.
The best way to go about this dilemma of getting a workspace is by consulting experts who can help you with finding a rental space nearby that is within your budget. For instance, Regus can assist you with locating a flexible and decent office space for as little as $450 per month in Singapore. This is a global company with a reputation and business experience that goes for over two decades. They also have 25 different building locations in the nation, so you should be able to find the perfect space that works for your needs and budget.
A startup business can lead to a lucrative income stream in the future, as long as you handle it right. So, if you are planning on managing one while on a limited budget, make it a point to apply our tips on how to save money on your startup while increasing your profits along the way. This way, you can minimize your stress level and actually have more fun with your business at the same time. Ultimately, there are always other alternatives available and taking up a business loan is one of them. Don’t be afraid to step out of your comfort zone because opportunities do not always come knocking your door.