Last Updated on July 29, 2022 by
When you’re a savvy entrepreneur, you prioritize cutting costs when it comes to purchasing necessities for your business. Here are four ways to save on basic expenses so you have more capital available to grow and service your client base.
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Use Online Resources
Investing in software can be costly, especially if you need options that will scale up as you grow. Shelling out for each new release and update really adds up, and if your business takes off you may quickly outgrow the capacity of your software and servers.
Turning to cloud computing solutions is a great way to save money while ensuring the flexibility you need when ramping up. You can use online platforms to manage everything from customer data to team collaboration to bookkeeping, and because most cloud services don’t require a large upfront investment you can pay only for what you need. Additionally, it’s much cheaper to store data on cloud servers than to purchase, and maintain, your own.
Sublease Office Space
If yours isn’t an operation that can be run virtually, you’ll need office space. Rather than pay for more square footage than you need, look for opportunities to share extra space that an existing, complementary business might have available.
You’ll typically pay far less to sublease than you would to rent out an office all on your own, and if you negotiate equipment access as part of your contract you won’t have to purchase or rent items like a copier or fax machine. Because the space will likely be move-in ready, you also won’t waste time on building out your workspace.
Buy Used Furniture
Whether you sublease a spot, rent an office of your own, or work from home, you’ll still need some basic furniture. Opting to purchase used desks, chairs, shelving, and filing cabinets can cost just pennies on the dollar compared to investing in new items, and you may be able to get better quality pieces than you could afford if springing for new furniture. Some dealers that specialize in pre-owned inventory even offer warranties to mitigate the risk of buying second-hand merchandise.
Barter for Services
When you’re first starting out in business, your needs likely outweigh your means. Bartering is a great way to obtain services without spending any hard-won capital, and although it won’t add any money to your bank account, a penny saved is a penny earned.
It can be especially effective to barter with professionals who will greatly impact profitability. For instance, offering your own goods or services to someone skilled in marketing means that what you’re getting in trade will go directly toward bringing paying customers through the door.
Whether you’re working with a shoestring budget or your coffers are comfortably filled, it’s always smart to look for ways to save money when you’re launching a business. Using cloud solutions, subleasing space, choosing used over new furnishings, and bartering for helpful services are just a few of the ways you can reduce your outflow and boost your bottom line.
