How to Save on Your Startup

August 31, 2015 | Jennifer Goodwyn

If you've just begun your journey with your startup business one of your main objectives is simple – save money. Easier said than done, right? Well, to help put you on the right financial footpath we've put together a list of five ways to save money while building your startup company.

Have a Budget:

We'll start with an obvious one. Having a clearly defined budget is the only way to ensure you're limiting expenses, setting a financial roadmap and planning for future growth. Creating a budget won't have a direct effect on reducing your overhead, but sticking to it will. Since it's easy to get overwhelmed by the complexity and, at times, tedium of creating and keeping a detailed budget it's a good idea to utilize cost-effective accounting tools. Not only can budgeting tools save you money, but they'll also cut down on the time required to effectively budget.

Don't Be Too Frugal

Shopping around for the best price is always the way to go but, remember, there is a difference between inexpensive and cheap. Purchasing the lowest-priced items is usually tantamount to purchasing items with the lowest quality. Not only that, but going cheap simply doesn't look professional. Don't hesitate to pay for items you know will contribute to the growth and credibility of your company.

Save on Office Space with a Virtual Office

Before you dive into a long and expensive lease agreement, consider saving on office space costs with a virtual office. A virtual office is ideal for startups because it provides a physical business location at a cost-effective rate, allowing for flexibility in where you choose to operate from. Servcorp's virtual office package not only includes a prestigious office address but also comes with additional services such as a dedicated virtual receptionist, communications forwarding and 16 hours per month of complimentary access to a private office or boardroom for select locations.

Only Hire When You Need to

It might be tempting to hire a marketing or development team early on, but moves like this can be risky. You won't know when you will need help, nor how much help you will need until you're up and running for a while. Hiring someone before you need them will only serve to suck up operating funds and detract from your bottom line. At this early stage, you're better off hiring interns and tasking them with duties that are within their skill sets.

Partner with Other Entrepreneurs

Building relationships with other entrepreneurs can present numerous opportunities to save money. Simply put – the more people you have in your network, the more chances you have to find a deal or service that can help your business get to the next level. So use services like LinkedIn and Twitter to your advantage to forge friendships that can be both professionally and personally rewarding.