There are countless things to consider and make sure you get right when you’re starting a business. However, 29% of businesses fail because they run out of money. So, we’ve put together a few money saving tips for entrepreneurs.
Money Back In Your Pocket
When starting a business, you’re going to end up putting a considerable amount of your own money into it. If you have a bookkeeper, work with them to track every dollar you invest because you can get that money back later, tax-free.
Paying Employee
If you’re just starting out, chances are it’s just you! However, if you’re growing, you might be looking into hiring some help and there are more than a few ways to pinch pennies here:
Contract Work
A new full-time employee to take some burden off you can certainly be tempting, but give it some thought before pulling the trigger. You might only need them for a little while or for a certain job. Hiring on a short-term contract basis might be the better option.
This goes double for businesses that rely highly on seasonal sales!
Students
Depending on what your business does, you might be able to provide valuable experience for those looking to learn! You might be strapped for cash, but that doesn’t mean you don’t have something to offer!
Commission
While it takes a certain kind of person to fit the role, offering commissioned-based pay is a fantastic way to ensure you aren’t spending money you don’t have. A steady wage might be lower, but commission ensures you only pay for the business that comes in.
Consulting
Rethink the way you hire consultants.
At some point, you’re going to need some help. Whether that’s writing, designing, marketing, or whatever else, you should always be comfortable asking for help. However, for certain things, there’s a better way to do things than hiring someone to do it for you. Instead, hire someone to show you how to do it yourself!
Contra Deals
With money being tight, figuring out what you can offer as payment substitution is important.
Contra deals are when two businesses offer to exchange goods or services to one another, instead of handing each other a bill.
For example, you might offer up a few of your products or a couple of hours of your service to a radio station in exchange for some air time. You get some time to air your commercial, and they get some prizes to give away. Win-win!
Overhead
Unless the money is really flowing, a fancy new office space, foosball table, and coffee machine with all the bells and whistles is probably not the best use of your limited funds.
One of the best ways to scale while keeping costs down is to utilize a co-working space like SuiteWorks. You don’t need to commit to a lease and can adapt the space you need to your ever-changing business.