Studies show that inadequate capital and excessive cost overruns are the two top reasons businesses fail. If you're an entrepreneur or small business owner, don't let your business fail as a result of financial issues. Since most small business owners don't have a lot of capital available from the get-go, it's important to manage costs while saving money for future expenses. Though some tips may save you more money than others, these penny-pinching tips are something to consider for all entrepreneurs.
1. Free Blogging & Website Platforms
Instead of spending thousands of dollars up-front for a professionally designed website, consider starting with a template-ready website or blogging alternative. Though WordPress is generally thought of as a blogging software, the range of ways in which a business owner can use WordPress are broad. Although some “themes” cost money, there are thousands of free WordPress themes available. As your business flourishes, you can always spend more money revamping your site or switch to a paid alternative down the line.
2. Consider Switching Banks
In order to make up for regulatory changes, banks are trying to squeeze out as much revenue as possible, especially from small business owners. Do everything in your ability to avoid fees like ATM surcharges, bounced check fees, and debit card fees. If switching to another bank will cut costs significantly, switching banks may be a good way to ensure the financial longevity of your business. Additionally, investigate all loans catered towards small business owners and choose the loan that offers the most perks and comes with the lowest interest rate.
3. Hire Interns
Interns are thirsty for experience and knowledge, and can easily be found at your local college. Many students must complete a certain amount of hours at an internship in order to graduate and, if you pick your interns carefully, you could get a lot of bang for your buck. Additionally, if an intern's work impresses you, you may consider bringing them on as a full-time member of the team upon graduation. Typically, interns are hip when it comes to new technology and trends, which can be a major win if both parties are willing to learn from each other.
4. Use a Virtual Office
Virtual office space allows business owners to maintain a professional image while cutting back on the overhead associated with leasing an (full time) office space. By using a virtual office instead of renting a traditional office space, you'll also be able to use independent contractors and cut back on additional costs associated with providing benefits and insurance to employees. Ideal for companies who don't require everyday access to an office but still wish to maintain a professional image via a business address and phone-answering services, a virtual office is a great way for small business owners to save money for the things that really matter.
5. Limit Initial Marketing Materials
Although marketing materials are a fun part of starting any business, ordering thousands of business cards probably isn't necessary. As a small business owner, it's important to not get caught up in business cards, website graphics, and embossed business stationary. Your business model may evolve and change over time, so starting simple and re-evaluating your marketing initiatives every few months is an ideal route of action for the money conscious entrepreneur.
Published by: Jennifer Goodwyn