7 Ways To Save Money Starting Your Business

save money new company lean startup bootstrap business frugal finances

Starting your own business can be a great move, allowing you to earn a ton of money and enjoy the freedom of becoming your own boss. However, the actual process of starting your own company can be extremely challenging, particularly when it comes to the various expenses that are involved. Depending on the type of business that you are considering starting, you could potentially face a lot of expenses. The good news is that there are several smart steps that you can take to try and save as much as possible when starting your new company on a budget

There are many ways in which you can save money when starting a new business. Many are fairly simple methods, which can help you save a significant amount. There is so much to think about when starting a new business, and this can lead to spending spiraling out of control. Take a look at our list of the top ways to cut costs in business without compromising on brand quality. 

1. Get Professional Legal Advice 

If you are planning to run your business from physical premises, there are several areas where you could end up spending more than you bargained for, both in the short- and long-term. Some businesses can be run from home, so it is worth looking into whether or not this is an option for your new company before you splash out on an office or store. If not, you will need some expert advice before you go ahead with buying or leasing a new business location, hjsolicitors.co.uk is a national commercial law firm that can provide you with all the advice and help you need to make sure that you don’t spend too much on your new premises. 

2. Don’t Overspend On A Website 

It can be tempting to invest thousands of pounds into a custom-built and managed website for your brand, particularly when a strong online presence is going to be one of the most important factors for growing your business. However, this isn’t always necessary. More and more e-commerce platforms allow you to create your own website easily and get the professional look and feel that you need for building your brand reputation. Many website building platforms don’t require you to know a single line of code, allowing you to put together a clean, professional looking site for your brand quite easily. Most are fairly reasonably priced, meaning you will save money compared with hiring a developer. 

3. Employ Freelancers To Start With 

When you are first starting out, hiring regular permanent employees can quickly become one of your biggest costs. Instead, it might be worth looking into hiring freelancers who work on a pay-per-job basis. Another advantage of working with freelancers is that many will work from home, meaning that you can take your pick of the best talent around the world without being limited to potential new hires from your location. 

Freelancers are available to work on a wide variety of different tasks including web and graphic design, social media management, payroll, marketing, content creation and much more. You could even hire an Excel macro developer to automate some of those time consuming activities.

4. DIY Where You Can 

One of the main benefits of becoming a business owner is that you will be able to learn what you are good at, and which tasks are best delegated to somebody else. Knowing your own strengths allows you to determine which tasks you will be able to do well. For example, if you’re good at marketing, then there is nothing stopping you from taking charge of your own marketing campaigns rather than paying somebody else to do it for you. However, bear in mind that taking on too much can have the opposite effect – don’t overdo it as you risk being unable to focus on key areas of your business. 

5. Outsource Where Possible

In addition to finding areas of your business that you can look after easily on your own, outsourcing tasks wherever possible can help you save more money in the long run. Certain aspects of your company, such as HR and payroll, can be a significant business expense that could be reduced if you choose to run them in-house. Instead, you can outsource these aspects to other companies who have more experience and employees, making sure that everything is done correctly at a much smaller cost to your brand. 

What you choose to outsource is mainly down to your individual business; consider what you are already good at in-house and make a list of any aspects that are falling behind or costing too much to do yourself. From customer service to website design and social media management, outsourcing can be a far more cost-effective solution for the long term. 

6. Investing In Affordable And Efficient Equipment 

If you are setting up shop in physical premises, you will need to set aside a budget for investing in office equipment, furniture, and everything else that you and your employees need for a comfortable and productive workday. However, before spending your money, consider some different options for savings. For example, you could find second-hand office furniture and electrical equipment at a fraction of the RRP. If you are planning to invest in technology, check out refurbished options before buying – many are in perfect working condition and come with a large discount. 

You might also want to consider a ‘bring your own device’ scheme for your workplace. Allowing employees to bring their own gadgets can not only improve productivity but also works out much cheaper for your business. Alternatively, you could always apply for a small business loan if your budget doesn’t stretch far enough to invest in equipment.

7. Word-Of-Mouth Marketing 

Got some happy customers? Great! Now, put them to work by asking them to recommend your brand to their friends and families. Word of mouth marketing is usually free of charge and often one of the most effective ways to spread the word about what you have to offer. You could ask satisfied customers to leave online reviews of your company, share your posts on their social media pages, or simply talk to other people about your brand. This way, you’ll gain more exposure without the massive price tag. 

Achieve More With Less In Business

Starting and running a business doesn't have to cost a fortune. Being smart and frugal can help you to bootstrap a lean startup that will stand the test of time. 

If you found these ideas helpful, we’d love to hear your feedback. Tweet @MikeSchiemer #BootstrapBusiness on Twitter with your experiences saving money on a new small business.

I hope you enjoyed this blog post about the key ways to save money when starting a new small business or bootstrapped startup.

Interested in more articles about running a frugal business?

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