One of the biggest concerns of startup owners is the initial cost. While some may want to have all the pieces in place before they start and go on a wild shopping spree, others may go to the other extreme and be gun shy when comes the time to make important purchases. But there’s a way you can find a happy medium between the two and start your business right without breaking the bank. Here are some tips on how you can lower your startup costs without affecting quality.
Everyone wants to have the best tools at their disposition when starting a business, but buying every single new piece of equipment, software, or furniture you come across will eventually start taking a toll on your bottom line. So, before you make any purchase, make sure that it is absolutely essential for the functioning of your business.
Before making an acquisition, try to take a step back and look at how well you’re managing without it. Try to check if having a particular piece of equipment could make a difference in you getting a contract or not. In some cases, using outdated equipment could deter some clients from working with you, so if that’s the case, you should make this kind of purchase a priority since it will eventually pay for itself. However, if you can manage without it, or if you can rent the piece of equipment instead, then you should consider going for these options instead.
Some people just fall in love with the idea of running a business and having their own office. However, renting office space costs a lot of money and comes with a lot of additional costs that you may not have thought about. The worst mistake you could do is rent an office before your business is actually off the ground. See if you can start from home and try to make it as conducive as possible to work. You could also consider coworking spaces that offer conference rooms in case you have to meet with clients.
If you’re just getting started, there’s really no reason to buy everything new. You can easily get away with buying second-hand furniture and equipment. And there are plenty of sources where you can get high quality second-hand equipment for a fraction of the price. Classified ad sites are filled with ads from companies and everyday people trying to unload some of their old furniture. Sites like Prevoled.uk also have tons of great second-hand furniture you can choose from. So, don’t be afraid to shop around and try to find a bargain whichever way you can.
If you’re just getting started, then having your own site is essential. However, nobody said that you need a state of the art website at the beginning. The best approach would be to try to keep things in-house as much as you can and upgrade once you have the chance. Sites like the Webeden website, for instance, allow you to create professional websites in minutes which will be more than enough to get you started.
If you want to cut costs, you’ll have to be ready to wear multiple hats at the beginning. You can’t start going wild and start hiring right away when you could easily outsource some of your business’s functions. You don’t necessarily have to hire someone to manage the payroll when you can hire a payroll service instead that will handle everything for you instead. The same goes with IT. Try to keep things as lean as possible at first and only hire when you feel outsourcing just doesn’t cut it.
Cutting start-up costs is essential when you’re just getting started. But by applying a few sound money management principles, lowering initial costs becomes pretty simple.