5 No-Brainers for Cutting Down Startup Costs

5 No-Brainers for Cutting Down Startup Costs
  • Opening Intro -

    With not too much money to go around, one of the main goals of running a startup is finding ways to save money.

    Obviously, cutting the costs is the right way to go, but knowing where and when to do it is invaluable.

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If you don’t want to be a part of the vast majority of startups that fail before they’re 18-months-old, you need to find a way to trim those costs.

There’s no shame in going cheap

…especially in the very beginning. The mentality you’re going for isn’t one of luxury, but one of doing anything and everything in order to stay afloat and profitable. It all comes from the mindset that you need to have a tendency toward – a true entrepreneur isn’t ashamed of anything – they’ve got their eyes on the prize, and if they have to sit in a two-bit cluttered office, so be it!

Go second hand

Start by going second hand instead of brand new – in truth, the vast majority of second hand items are nowhere near their expiration date – it’s just that their previous owners have found a more modern replacement. For example, you could go spend $6,000 on 5 or 6 brand new, expensive PCs, or, alternatively, you can set aside $1,000 on your office’s personal computers, and get at least 5 or 6 solid, preowned units. A ballpark of around $5,000 saved; that’s got to count for something.

Contracting

Having a team of trusted employees is always great – making a company feel like a family environment is great for business. Of course, hiring people for every single task that you might occasionally need is expensive, to say the least, and quite honestly – irresponsible.

For instance, as a company that focuses on eCommerce, you’re going to have to have a web designer on the clock – you’ll want to make relatively frequent changes to your website, plus they can work on website maintenance in the meantime.

Of course, as a construction company, having a web designer is downright ridiculous – it’s a waste of money and manpower. Naturally, this example is a rare (if not non-existent) occurrence, but there are many businesses out there that hire instead of outsourcing.

This is ridiculous, given the amount of money they end up hemorrhaging on a weekly or monthly basis – it becomes like paying extra tax; you don’t want that, right?

Rent

When put on paper, startup costs can add up to a whole lot, and even if you have all the necessary funding, you might want to reconsider buying all the equipment. Of course, you are well aware of the fact that you can rent an office space, but if you’ve opted for buying, you know that it doesn’t end with real estate property. Buying stuff such as furniture, office equipment and other work-related paraphernalia (depending on your business type) can actually set you back more than the actual office that you’ve just bought.

Furniture, PC units, toilet equipment, all this can be rented out for much, much less money than even buying second hand. In fact, if you are not a construction or warehouse contractor, and just need to reach tall access points occasionally, you can opt for quality scissor lift hire, and even rent out stuff such as bulldozers, pallet jacks, etc.

Tax deductions

In a perfect world, every government should support small businesses by offering tax deductions to aspiring entrepreneurs. In reality, governments do offer support to small businesses, but the conditions are very specific and the rules very strict – they won’t knock on your door and offer help. Hire an experienced accountant and let them deal with all the paperwork that will help you cut costs.

Here’s another tip: maintain friendly contact with your peers to find out what kind of money they’re cashing out on taxes, so that you can use this as your leverage when negotiating with the government.

A true entrepreneur has their eyes on the prize, and doesn’t think in terms of luxury – there’s plenty of time for this down the line. Consider when to hire, and when to outsource, feel free to buy second hand and rent, and ask around about tax deductions – ask the government to help you.

Bestsellers in Business Supplies:

AMAZON: business computers

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