Starting a business comes with costs. Sometimes it comes with a lot of cost. From getting your business licenses to creating inventory to shipping, each step of business requires capital. Those who are business savvy and frugal can use their talents to cut costs. If you are new to business, have an idea that you believe will take off, and would like to create your first start-up, there are ways that you can cut costs and avoid initial overspending. Here are some tips and areas where you can save money on your business start-up.
Saving Money On Your Business Start-Up
The Cost of Doing Business:
There are initial costs that must be paid before even touching a product. Depending on where you are located these costs can vary. In the US these costs may include a business license, tax ID, and resale certificate. Individually these requirements can add up to hundreds of dollars in fees that must be paid before you can sell a product or offer your service.
One way to save on these costs is by utilizing legal services to file the paperwork for you. Not only will it help reduce costs, but also the hassle and headache that come with filing. These services usually receive a discount from the IRS or state departments and pass the savings on to you. They are also professionals with the knowledge to get the paperwork done right the first time.
If you are selling a product, you will need inventory. Buying in bulk can save you money in the long run even though the initial cost is substantial. The more you buy the more you save per unit. Try to begin by ordering the minimum required order size to get started. If your profit is adequate you will be able to increase your order when the time comes. You should expect some time before seeing any profit however. It is customary to reinvest profits into your business for at least 6 months before claiming profits for yourself.
Another option is drop shipping. Many distributors offer this service as an alternative to ordering bulk inventory. The pluses for this method are instant profits and removing the task of shipping the product yourself. This is suggested more for online business and catalogue ordering rather than brick and mortar stores. The way this works is simple. Instead of actually carrying inventory, you add the products you want to sell to your site with the mark-up price you choose. As your customers order the products, you place the order with the distributor, listing the shipping address as your customers address. They will then ship the product directly to your customer and you profit from the mark-up. This is a great way to start with less hassle and cost.
If you don’t have a website, you don’t have a business. There are thousands of companies promising the best service, lowest cost, and easiest setup. I heard lot of companies offers Free Phone Service for your business but I’d not recommend you to use it. You can get your Business phone line from £3.99 per month, from this company you save 77% in the first year of your business rental line. You can make free calls to local and national 01 and 02 numbers with the Anytime 600 and Anytime Max minute packages.
However, if you are just getting started, these webhosting companies may seem confusing. With promises of the best plans and lowest cost, it is imperative to shop around. Compare and contrast several web hosts and packages to choose the price that is right for you. In the beginning you will only need the bare necessities to get you started. As you grow your website can grow and you can upgrade your plan later.
Those in the web game know that one way to assure more traffic on their site is by creating a monopoly on their domain names. Some companies will create their domain name and buy the .com, .org, and .net versions of the same name. (For instance example.com, example.net, example.org) The reason for this is to assure whether their customer types in .org, .net, or .com, they still reach the website. Though that is smart business, it is not a necessity. Saving on cost by choosing only one domain extension can help give funds for other aspects of business.
Another way to save on cost is by choosing a host with templates and free setup. Using their web builders and premade, customizable sites can save you hundreds in web design. These options allow you to personalize, brand and customize the site to fit your look and needs. Most of these options will include free setup and a small monthly fee rather than a large one-time fee with monthly service charges for maintenance.
There is no point in having a business if nobody knows about it. Marketing and advertising is a part of business that constantly changes and never ends. When you are just starting out, you may not have the option to hire a marketing firm to handle your advertising. Therefore utilizing web searches and research will be the low cost way to learn how to market your site and business.
Many have turned to free services such as free classifieds, social networks, and search engines. These are great ways to advertise without paying a high price. You can even utilize the blog craze to get your name and brand out to many people. Using the following of other sites is the best way to reach many cheaply. Take your time to find blogs, sites, and methods to advertise that match your particular industry.
Whether you’re an old pro or a new entrepreneur, there are many ways to cut cost on start-ups. The business game is all about high profits and low overhead. Keep it as simple as possible and use as many free and inexpensive services to get your business started the right way.