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Published May 09th, 2017 by

Top 5 Ways to Save When Starting a Small Business

Having your own business, working for yourself, financial freedom, being the boss … these are some fantasies that almost everyone has, at some point of time. However, setting up your own business, and then taking it to a certain level of success is not a mean feat at all. Very few actually dare to start, let alone achieving any kind of success.

The biggest hindrance turns out to be the lack of capital that one needs to have in order to give it a try. In most cases, it will take some time for a startup to get to the break-even point (let alone making profits), so the entrepreneurs need to have the funds to endure the financial pressure in this phase. It’s the time when you’ve got to be overly cautious in your spending, and save as much as you can to avoid piling up the expense column while the revenues haven’t started to roll up. It is also advisable to use some investor or acquiring loan from a reliable provider like Just Right Installment Loans to avoid financial trouble.

Following are five tips that will help you save lots of money, when you are about to start your own business.

Starting Online

One of the major costs for the majority of businesses is to arrange an office/shop/workplace, from where you can operate. We all know how expensive are the commercial properties, especially the offices or shops located at the “right” places. But, there’s one space that’s dirt-cheap as compared to these places, and that’s cyber space. The best part is that it is as crowded as any other market out there.

Don’t underestimate the power of Internet; it can be a very effective launching pad for just about any business. It allows you to start just about any business, and it costs peanuts as compared to the brick and mortar office.

Using the Cheapest Marketing Mediums

You cannot drop the idea of marketing altogether for the sake of cost saving, you must do the marketing, without going over-broad in your efforts of promoting your business. The idea is to start small, with the cheapest available options and invest more in marketing as you start getting some sales.

Apart from extremely low cost startup, Internet enables you to avail some of the most inexpensive, yet very effective marketing mediums. For example Social Media Marketing, which is almost free, same goes for Search Engine Optimization that doesn’t cost much either. It’s true that you’ll have to spend some time to get familiar with the basics of such mediums, but still spending your time on learning is better than spending extravagant amounts on other advertising mediums, that might result in more and more financial burdens on your newly born business.

Educate Yourself to Avoid Costly Mistakes

That might sound like a no-brainer, yet many entrepreneurs fail to do their homework. Remember, having an idea, no matter how brilliant, is not enough to get you through, unless you know the nooks and crannies of the market. So, instead of jumping straight into the arena and getting thrashed by the big wigs, it’s better to take some time and train yourself while working as an assistant or employer in a similar business.

Try using this period to study as many books as you can, related to your industry or basic business management like book keeping, marketing, or business taxation. Knowledge is the best defense against the initial setbacks, which are eminent in the early years.

Be a Penny Pincher

Starting a business is only the first step towards financial freedom; it doesn’t give you a license to start spending like crazy. If you have a tight budget, you should avoid spending on lavish furniture, unnecessary equipment, or staffing. Business world is a place where penny pinching is considered a positive trait, always think in terms of ROI (return, return, return), and negotiate on the salaries when hiring, rates when outsourcing, or prices when purchasing stuff for your business.

Book Keeping

Juliana Hatfield, the famous guitarist and songwriter once said I find money boring and accounting boring, so I am probably not going to ever make a lot of money.

Well, she still managed to make some money because she’s an artist, and a very talented one at that, but the statement stands true for almost all businesses. Any small business owner who finds accounting or book keeping somewhat boring, and considers it a waste of time, will hardly do well. Noting down each and every transaction, expenses, cash flows, and all will let you keep a tab on all the money, which is important because it is the money that eventually decides the fate of your business.

Shyam Bhardwaj

Shyam Bhardwaj is the Senior SEO Analyst and Founder at eShine Marketing, specialized in search engine optimization and marketing. Shyam has over 7 years of experience working with global businesses under different marketers.

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