If you’re thinking about starting your own business, you might be deterred by the initial costs. For those who are starting a business online, there are less initial costs than you might realize. It can help to save before launching your business, and you can also save money on costs that you thought were set in stone.
In order to look like a legitimate, professional business, you’ll want to have office space where clients and potential customers can meet with you. If you have a business that requires space infrequently, you could look into meeting rooms for rent. You’ll only need to use them when you have large meetings with investors or clients. A serviced office has a receptionist who will forward calls as well as serve as a mailing address while you work from a remote location.
You can also save on employee salaries by hiring a part-time employee who works from their own office. You won’t have to worry about providing benefits to a part-time worker, and they have their own space with the equipment needed to do their jobs. To save big on employee costs, you could take on an intern who is willing to work for little to no money for the experience. For sales associates, you could have them work on commission, which means you won’t have to pay them unless they bring business into your company.
When you work from home or in your garage, don’t forget to find out about all the important deductions you can make on your taxes. You’ll be able to deduct a portion of your rent or mortgage as a business expense depending on how much of your home is used as part of the business. You’ll need to check with a tax professional before taking these deductions.
Another way to save money as a new business is to save on shipping costs. If you have a friend or a family member in the area of some of your suppliers, you can save hundreds on shipping costs by having it picked up from the manufacturer. While you’re saving money if someone is naturally heading near the supplier, if you do it yourself, you might not be saving all that much since you won’t be involved in any activities that will generate revenue while traveling.
Before contracting for work, make sure you get at least three bids to ensure you’re getting the best price. Once you’ve chosen a vendor, find out whether you’ll get a discount for paying bills at a certain time. Many vendors will give you a credit for paying early. If they don’t, consider keeping the money until the last minute to earn interest on every dollar possible.
There are plenty of ways to save money when you’re starting a new business from a rented meeting room to saving on shipping costs. Before you open your business, think about the ways you’ll be able to save money on the process.