No matter how small a business is, it still requires a large sum of money to run properly. Between office overhead, paying employees, marketing your ideas and creating your products or services in the first place, even small startups are costly. However, there are tons of creative ways that startup founders can decrease their spending and make their capital last as long as possible. Here are a few viable hacks for saving money as a startup founder:
Go BYOC
One of the most expensive parts of setting up a new office is stocking it with the required equipment your staff will need to do their jobs. Some small businesses take care of this problem – at least in the short term – by implementing a BYOC policy that has employees bring their personal laptop computers to the office. Many people feel more comfortable using their own devices anyway, which means employees will likely be fine with this policy. Even if the policy only lasts until you start making enough profit to buy your own equipment, you'll save tons of money during the first year of business.
Rethink Your Office Space
Especially in bigger cities, renting an office space and paying for utilities can cost a lot of money on a monthly basis. That said, it's important to find an office with a reasonable price, which means you'll likely have to sacrifice a little in some areas. Be prepared to opt for something pretty basic and perhaps smaller than you'd prefer. Or, consider sharing office space with another startup or small business. That way, you can find something a little nicer for half the cost.
Change Your Hiring Strategy
A lot of business owners overlook great young candidates because they don't have enough experience. However, experience costs more, and prospective employees who've just graduated from college or are just starting a career often have interesting and fresh perspectives. You can also consider taking on a couple of unpaid interns for office work, social media management and other tasks that require some know-how but not a ton of experience. Many startup founders even opt for contracting out work, rather than hiring employees full-time. This is a practical way to save money and still ensures you receive professional and high-quality work.
Buy Business Cards Online
Business cards and stationery cost a lot of money at office supply chains, but buying online can often get you a lot more for a lot less money. Also, before finalizing an order, keep an eye out for upcoming holiday discounts that could reduce the cost even more, and see if you can get bulk-purchase deals like free shipping.
Barter Services
Bartering your company's services for another company's is not just good financial sense – it can also expand your customer base and word-of-mouth marketing efforts greatly. Look for small businesses that provide something you need – like marketing help or logo design services – and see if you can trade your service or product. In some cases, you could potentially develop a lasting relationship and save money for years.