You already know that setting up a new business can be an expensive venture. The costs seem to be piling up and up, and suddenly, that chunk of cash you had to get up and running is beginning to look smaller and smaller. While you can look at getting additional funding for your business, it’s sometimes easier to look at reducing your expenses – it’ll have the same effect as getting more money, and you won’t need to fill out any forms or look pleadingly at the bank manager. Below, we outline 5 money-saving tips for new businesses.

Only What You Need

You might have a vision of what “running a business” looks like, but it’s best to forget all of that for now, at least until you’re an established entity. For instance, do you really need to spend money on office space? Probably not now. That’s a luxury that you will hopefully acquire in time. And of course, don’t even think about buying the most expensive equipment you can find. Believe it or not, it is possible to build a successful company without owning all the latest technological products. Buy only what you genuinely need, and wait to add the rest.

Get Savvy With Marketing

Of course, you’re not going to have much of a business if no one knows that you’re there. Therefore, you’ll have to dedicate a significant portion of your budget to your marketing. Make the most of the free marketing tactics that are available to you, and only use paid advertising when you’re sure that it’s going to be effective (this involves knowing your customer, how they consume ads, and so on).

Avoid Hiring Staff…Just Yet

You’re not going to build an empire all by yourself. But of course, you don’t have the budget to hire staff yet. And even if you did, it probably wouldn’t be a good idea anyway. You need to make sure you have a viable business before bringing people on board full-time. Instead, work with outsourcing companies to take care of the time-consuming recruitment process. A company that specializes in managed services can take care of your IT as an example. An accountant can take care of your finances, and a virtual assistant can take care of your phone calls and planning, and so on.

Negotiate Your Expenses

The price on the sticker is not absolute. When it comes to negotiating terms with suppliers and the like, make sure you’re actually negotiating. You don’t have to pay the first price they mention. If they’re not willing to talk about the price, then say goodbye, and find a company that is.

Count Every Penny

In the end, you’ll save the most money by doing one simple thing: keeping an eye on where you’re spending it. If you keep close tabs on your expenses and consider these money-saving tips for new businesses, you’ll likely not spend your money unwisely.

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