Not all start-ups are funded by investors from the very beginning, meaning that sometimes there is a need to cut down on outgoing costs when you’re funding it out of your own pocket. Cutting down on costs, however, is more difficult than you think, especially for first-time entrepreneurs who often find it increasingly difficult to gain funding without first showing potential investors their plan for potential success and that they are gaining some sort of traction.
Funding your start-up will, without a doubt, teach you a lesson in hard work and flexibility, as well as help your business on the road to success. In this article we are going let you in on a few thrifty money-saving tips that can help you cut down on your business’s start-up costs:
Pay Attention to Your Cash
As part of your business’s start-up, it’s advisable to open its own bank account. Spending money out of your own personal bank account for business purposes can be risky – leading to possible problems further down the line. By opening a bank account solely for business purposes, you can keep track of your money, where it is going, and where there is potential to cut back on costs. You will also be able to learn what adds cash to your business and what diminishes it. It would also be wise to invest in an app that will help you track your spending and burn rate; one such app is Mint.
Do the Job Yourself
You are going to need to outsource the jobs you’re unable to do, but in order to save some much-needed cash don’t outsource and hire someone unnecessarily to do the jobs you can do yourself. When starting up your own business you will need to realise that there will be a need for you to step out of your field in order to help your business grow. For example, instead of employing a driver to drop off packages to your clients, do it yourself. This will save you more money than you think, saving you much-needed capital that can then be used elsewhere.
Be as Thrifty as You Can
Your business won’t be more or less successful because you are set up in a lavish office situated in the centre of town. Instead choosing an office for rent in Abu Dhabi that is both functional and reasonably priced would be a better financial decision for your start-up in order to get going and save some extra money. Other ways you can be extra thrifty is by using free versions of programs, for example Dropbox and QuickBooks, until you know what ones you will need, print your own free business cards, and buy second hand office equipment instead of investing in the newest technology. By saving on the little things – that tend to add up to more than you would think – you will be able to stretch the cash that you have further.
Being thrifty when starting up your business can be very hard, but it is not impossible. It will take hard work, collaboration and thrifty thinking, but it is an investment that will pay off for your company and its future.