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4 Ways to Save on Start-Up Expenses
  • 27 September 2016
  • Eric Michaels

4 Ways to Save on Start-Up Expenses

Entrepreneurs often have much bigger ideas than working capital, and most would not have it any other way. However, you have to learn how to launch and run a business efficiently to succeed in the long term. While the process will be different for every concept you hope to bring to market, starting with a shoestring budget is necessary. Here are four ways to save on start-up expenses and put every cent to good use:

1. Start with a mobile office

Rent can sink a young company fast. While you are building your list of clients and investing in resources, the last thing you need is a burdensome lease, expensive utilities bill, or new office furniture. Instead, get started with a mobile office. This will allow you to hire employees or independent contractors without having to spend thousands of dollars every month renting a space.

Mobile offices have few drawbacks as long as you can trust your staff's performance. After running your operation remotely for a bit, you will be able to tell which employees are a good fit. Popular apps like Skype and Trello can help you run your business in real time, so there is no gap in terms of production. If you eventually decide that a mobile office is not a good fit for your company, look into local shared office spaces as the next most affordable option.

2. Use freelancers

As you scale your business, chances are that you will need more help. Instead of hiring all full-time employees, use freelancers to meet your company's short-term needs. Freelancers offer the specialized help you need for one-time or ongoing projects without you having to add them to your payroll or pay for health insurance.

Hiring independent contractors also gives you the opportunity to try out potential employees. Hiring can drain start-up resources, but going through a trial period with employees can help you make sure new team members will be a good fit.

3. Master bartering skills

This trick for cutting down on expenses may cause entrepreneurs to feel uncomfortable, but it is easier than you think. First, you have to decide what you have to offer individuals or other businesses. Whether you run a public relations company or build apps, there may be something you can offer another person or business while you grow your company.

Once you have something to trade, figure out what you need in order to successfully launch your company. Maybe online marketing help is the missing link; in other cases, free lunches from a local restaurant could be the answer to keeping employees happy for a few weeks. Whatever you might need, there is probably a trading partner available. Look online or on community bulletin boards for the right fit.

4. Outsource the busy work

There are a number of companies that offer entrepreneurs incorporation services and other business needs that may come up during the first months of operation. Find solutions that are less expensive than hiring full-time employees, and you will save money as you launch your company.

To avoid feeling trapped during your first year of operations, try to keep your start-up expenses to a minimum. The UPS Store offers discounts on professional services, which will help you keep prices low throughout your start-up phase.

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