Startup Costs You Can Cut


Entrepreneurs quickly learn that they need to be masters of cost cutting to thrive, and even sometimes to just survive, when bills pile up and payments come in late. Here are some great ways that you can save money when starting a business:

Entrepreneurs quickly learn that they need to be masters of cost cutting to thrive, and even sometimes to just survive, when bills pile up and payments come in late. Here are some great ways that you can save money when starting a business.Subscription-based Services

If you are thinking of purchasing a subscription service, keep in mind that most have free trials, which can save a few months or weeks of fees. Furthermore, many services even offer pared-down versions that are permanently free, which you can use until you are positive you can’t do without the full paid version.

This is true for many online analytic services that provide reports on your Facebook, Twitter and Instagram performance. There are also many services that post to social media on your behalf for free, such as Hootsuite, that only charge if you require more complex posting services. Don’t simply assume you need the premium service until you’ve thoroughly tried out the free version.

Marketing Without Clear Results

While marketing is an important expense to not scrimp on when starting your business, you should stick with measurable methods.

“Whether it’s PR, marketing or branding, if you can’t measure the results of your efforts, you shouldn’t spend the money,” states Sean Patel, contributor to Entrepreneur. “When money is tight, start by focusing your spending on things you know can build your business.”

Fake Social Media Followers

Many businesses (and even celebrity brands) have come under fire in recent years as evidence surfaced that they purchased thousands of fake followers to inflate their social media rankings. Don’t fall into this trap when you are starting up.

“Not only is this usually a scam, it’s not a great way to get customers,” cautions Patel. “It may look good to say you have thousands of followers, but if they’re fake, you’re never going to see a return on that cost.”

So, if you are tempted to start your Instagram account with an instant base of 10K followers, think again. First and foremost, purchasing followers in a way that appears even somewhat convincing can be very expensive. Second of all, it is widely considered a disreputable tactic, so it can discourage future customers and business associates if it comes to light.

Entrepreneurs quickly learn that they need to be masters of cost cutting to thrive, and even sometimes to just survive, when bills pile up and payments come in late. Here are some great ways that you can save money when starting a business.Go Paperless From the Start

Many businesses try to cut costs by encouraging customers to agree to paperless services. It is time consuming to make the switch, and many customers prefer to stick with what they are used to without giving it much thought. If you are just starting up, you can establish paperless service as the status quo from the start. Bills, receipts, contracts, mock-ups and more can all be sent online instead of printed, adding up to big savings.

“You can use file-sharing services such as Dropbox or Google Docs, electronic invoices, payments and inventory spreadsheets such as FreshBooks, WorkingPoint or Apptivo, and electronic signature services such as DocuSign to easily share information internally and externally,” states Levi King, contributor to Entrepreneur. “We often overlook how much paper we waste by printing things that could easily be accessed and shared online.”

Establishing Business Credit

“One of the biggest mistakes that new businesses make is only using personal credit for business expenses,” states King. “By building strong credit in your business’ name – not tied to your personal credit – you’ll be able to access more financing and at better rates, which can save serious cash.”

So, make sure to talk to your financial institution about setting up a business credit account right away. Not only will you be getting an early start to building good credit, but you will also be reinforcing your relationship with your financial institution, which can go far when it is time to take out a loan.

 

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