Hi everyone, I’ve been thinking for some time about starting a new business, but I’m looking for some ideas on how to keep my costs low – especially in the early stages.
Here’s what I’ve come up with so far – I’d really like to get your feedback on these ideas, plus feel free to add any ideas of your own.
1. Use a shared workspace. My city has a couple incubators/shared workspaces that I think might be a good fit for my business. Does anyone have experience working in this type of set up? What are your thoughts?
2. If not a shared workspace, then maybe getting some good condition used office furniture or equipment and setting up shop in my basement.
3. Using free/low cost forms of advertising. In the early stages of my business, I think maybe it’s a good idea to focus on SEO rather than PCC. Free classified sites like Craigslist might be a good idea. I’m also thinking of purchasing some Facebook advertising and would love to hear about anyone’s experience with that.
4. Hiring freelance workers. I’m fairly certain that, in the short-term, my business can get by with contract workers and freelancers rather than full-time employees. This seems like an ideal solution right now since I probably won’t have enough work in the beginning to hire full-timers.
5. Bartering. I think the products and services that I’m planning on offering might lend themselves well to bartering. I would like to get someone to design my website and another person to help me with some basic bookkeeping. Since I want to keep my own budget low, I think I might be able to exchange my own services for these services. Does anyone have experience with this? Are there any drawbacks?
Please feel free to let me know what you think about any of these ideas. And if you have more tips on how to lower my start-up costs, I am all ears!
Hello Steve, there are a couple other methods to reduce your startup costs that I am aware of.
A lot of small businesses are able to write off a lot of their startup and organizing expenses in their first year of business.
You should also track every expense you make. In the future this information can help you make better financial decisions for your business by doing away with expenses that are not helping you.
Hi Steve, with regards to coworking, ask yourself what are the tasks required of the business? If you need a conference room to meet with clients and investors, you want to look at a co-working space that charges you by ONLY the time used. Ask them what other services they provide like secretarial tasks or if there is room to expand in their space. A lot to look at depending on your business. Hope that helps!
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