Most entrepreneurs are working with limited funds when they first start out. Managing your expenses at the beginning of your business’ life will set a good foundation that will serve your company well for years to come. Here are a few ways to keep your balance sheet in shape before you get a good cash flow going.
Limit overhead expenses. Depending on what type of business you’re running, you should be able to do a lot of your work with just a computer, an internet connection and a phone. If you can avoid it, don’t waste money on overhead that will bog down your income statement each month. Once you’re established and will benefit from a shared workspace, you can upgrade to a separate office.
Seek out discounts. Unfortunately, cash-rich companies are usually the ones that are able to take advantage of these approaches, and most new business don’t usually fall into that category. However, many suppliers will offer discounts for paying bills early. If you have the cash to do this, you could benefit from lowering your expenses. Additionally, if you know you’ll need a large supply of something, either for your office or your business, you should be able to negotiate a bulk discount.
Learn about taxes. Running your own business can offer huge tax benefits. You may have to hire an accountant to help you figure out the details of your specific situation but it’s good to be well read on the topic, and if you have a relatively simple situation and have done enough research, you may save on the cost of hiring an expert.
Explore open source software. There are many great, free programs out there that will help you organize your business as you’re getting on your feet. Before making a large investment in software or technology, do some research and see if there isn’t a free or cheap beta alternative that could help you for at least a little while.
Anne Perkins is a freelance writer focused on how to live large on a little living. She writes financial savings tips for the online short-term loan provider, QuickQuid. At her blog, AnnieIdea.com, you can get tips on how to take any idea and make it easier or cheaper to complete.