Investing in your startup business requires discipline and a deliberate approach to financial management. A clear savings plan will help you secure enough funds to support your dream venture.
Understanding the needs of your business and what you hope to accomplish when it gets off the ground are essential elements to help you focus on saving.
Whether you need ideas for ways to save or you want to combine your saving efforts with other avenues, there are a few things you can do to save money while investing in your business. Here are a few suggestions to consider.
Work From Home
Doing work-from-home jobs or telecommuting allows for saving money in various ways. You’ll save by reducing travel time and money spent on gas. Consider running your business from home to minimize business-related expenses.
You could work a second part-time job from home doing online tasks such as writing, researching, creating websites, or doing anything of interest people are willing to pay for services.
Get Equipment Used or at a Low Rate
What equipment do you need to run your business? Do you need to buy it brand new?
If you can find gently used equipment from trusted sources, it can significantly cut down on your start-up costs. You can always upgrade down the road when you’re business is more profitable.
Online auction sites may help compare your options before purchasing.
Related: What Side Hustle Should I Start? Your Answers Will Help You Decide
Take Advantage of Free Software
Starting a business may require using software products for organizing data, creating spreadsheets, making custom designs, or anything relevant to running your startup. There are many free online tools that you can use to plan and organize your business. Google Drive is an obvious choice that also comes with the benefit of being accessible anywhere.
As you learn about software options, set a budget for investing in the quality programs you need for your business if you decide you need them. Consider options with a 30-day free trial, and if you like it, make plans to purchase it later when your business is financially stable.
Buy in Bulk
Depending on what materials and supplies are needed to run your business, you may benefit from purchasing items in bulk. Some vendors may offer a discount. It will help save later expenses, and you can take advantage of items when they are on sale.
Use Online Savings Accounts or Accounts with Interest
Grow your savings a little faster by using a high-interest savings account. Saving small amounts weekly or monthly will add up and help you reach your savings goals faster.
Learning your options is still a good idea, even if you cannot put money aside right now.
You may be able to negotiate lower prices with vendors, but you need good communication skills to make it happen. Once you’ve established a business relationship with a vendor, work out a deal on the products or services.
Be clear about the terms you would like as part of the agreement. Listen to what your vendor offers and be willing to discuss terms further or try again later if a deal isn’t reached.
Invest in Yourself
A big part of investing in your startup is really about investing in yourself. So don’t forget to work on your talents and develop your skills.
School is an option, but it can be expensive. And if you have loved ones to care for or other unexpected expenses, you may not have the money or the time.
Fortunately, there are free online training courses where you can learn leadership, negotiation, and organizational skills at your own pace.
Additional Tips for Saving Money On Your New Business
- Pay your monthly bills on time to prevent late fees or increased interest rates.
- Talk to people that started their businesses from scratch and get feedback. Use their advice to think about steps you need to take for your startup.
- Choose wisely when hiring employees. The more experience a person has, the more they expect to be paid. Work with someone who can provide the level of support you need.
Now that you have a few ideas on investing in your business consider your long-term options to keep your business funded. You may discover ways to save that will allow for further personal and business growth.
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Amanda Kay, an Employment Specialist and founder of My Life, I Guess, strives to keep the "person" in personal finance by writing about money, mistakes, and making a living. She focuses on what it’s like being in debt, living paycheck to paycheck, and surviving unemployment while also offering advice and support for others in similar situations - including a FREE library of career & job search resources.