Startup Savings: How to Keep Those Costs to a Minimum!

Tap to Read ➤ Stacy Tolkin

Starting a business is no easy challenge, but it is one that could hold lots of benefits in the future. So don't fall at the first hurdle and make sure that your startup doesn't run out of money!

Why Are Costs So Important During the Startup Stages?

A startup is always going to be a little bit more precariously balanced than a fully backed business model. Startups are defined by their inception by entrepreneurs. The 'from nothing to something' model comes to mind. This means that startups have less money, are still in ideation or don't have any financial backers yet. So, watch those costs closely!

So, How Do We Save Money?

Renting or Buying Equipment?

Making sure that you always weigh up the benefits of renting or buying equipment is a must. While hiring may be your only financially verifiable option now, it may end up costing you more than having just bought the equipment in the long run!

Doing a Predicted Cost Analysis...

Find out how often you think you will use said piece of equipment over the next year or so. Times the rental cost by that number. If the amount comes to more than the upfront cost of the equipment then it may be worth holding off and digging deeper into those pockets!

Become Your Own Bargain Hunter!

Deal, Discounts and Bartering

Never settle for full price. We live in an age where pretty much everything is available at a multiplicity of different prices. Make sure that you always have your eye out for the cheapest price on offer and don't be afraid to barter.

What Should You Be Saving Money On?

You should be looking out for savings that will help your startup. Furniture (desks, chairs) Office equipment (pens, paper, computing) Bills (heating, water, office rent) Subscriptions (web hosting, software)

Where You Can Save Money...

Be savvy and use your initiative! There are so many places that you can save money, you just need to be a little creative. Start in these places: Car Boot Sales Charity Shops Promo Codes For Amazon Ebay Money Saving Expert Freecycle Apps

Working Hard & Only Hiring Where Necessary

When to Hire and Who to Hire...

Don't get carried away with yourself. While hiring an employee is a super exciting endeavor, it can be a huge cost. Only hire when the work is too much for you to do alone and maybe start with a freelancer or a part-time employee before committing to paying someone's full time salary.

Finding Financial Backers...

Should You Get Financial Backers?

Most startups will eventually need financial backing in order to really take off. While this may come from many places, it can be tricky to get and takes a lot of planning.

What to Do Before Looking for Backers?

Research the backers you are pitching to Work out the numbers Have a sturdy and foolproof business model Exemplify profits Work on your presentation skills Have a back up plan

Where to Look for Potential Investors?

Do some research into the types of backers that other similar startups have benefitted from and reach out to them. There are a few other options that you can take: Dragon's den Ask family members Kickstarter.com Use LinkedIn

Rounding Up...

How Will Your Startup Save Money?

Whether you are going to buy or rent equipment, use online discounts, head to a car boot sale, hire cheaply or find some financial backers, saving money as a startup is often imperative. No one wants to fall at the first hurdle. So get saving today!