You’ve had a side hustle for a long time, and now you’re thinking about turning it into a proper business. Things have been going pretty well, and you’re confident that this can be your big break.
Lots of different things go into starting a business, but money is perhaps the most significant aspect. You have to spend money to make money, but you also need to avoid spending too much.
Overspending during the startup phase can put you on the back foot right away, leaving you destined for a life full of debt.
So, here are a few smart hacks to help you save money when starting your small company:
Work from home
Don’t rent an office.
There’s no conceivable reason for any small business owner to rent an office these days.
The last two years have proven that working from home works, so why waste money on an office?
It’s cheaper to rent two-bedroom apartments, turning one bedroom into an office, than it is to rent your home and then rent an office. Yes, as your business gets bigger, the benefits of an office might start showing themselves. For now, when it’s just you and your small enterprise, you can save money by not paying for an office at all.
Speaking of being by yourself, this is the best way to approach the first year or so in business. Do as much as you can alone, then outsource other essential services.
It is far cheaper than hiring a team of people to work for you every day. Outsourcing has become way more convenient as well, limiting its disadvantages.
One pro tip is to outsource to companies in the same timezone as you, so you’re always working to the same schedules. It makes life easier, and you get the benefit of employees without needing to pay for employees.
Again, as you grow, you may hire staff. Right now, that’s not a priority and you can save money by outsourcing.
Finding a viable way of funding your business idea is going to be tricky. As a consequence, you’re inclined to get a business loan. It helps you get the funds you need, but it also lands you in a bucketload of debt.
With crowdfunding, you can get other people to donate money to help you start your business. It’s a successful idea, and it can mean that you either don’t need a loan or can get a smaller one, saving lots of money.
Those of you turning side hustles into businesses can really take advantage of this. You already have clients or customers that love your service, so perhaps they’re willing to pitch in to fund your idea.
At the very least, they can help share your crowdfunding proposition with others, increasing the likelihood of you getting money.
There you go; three smart hacks to save money when starting a business. The keyword is starting – these ideas are for the early stages of your business. When you become more successful, you can afford to spend more money.