One of the main factors that discourage people from starting a business is the cost. It’s seen as too expensive for the average person to afford, so many people don’t even try. It’s easy to see where that idea comes from, but it isn’t entirely accurate.
About 44% of entrepreneurs say that they started their business with less than $5,000. While the number you can get by with will vary depending on what business you’re in, this does go to show that you don’t need an excessive budget to make it. With a little bit of saving and some careful planning, you can have your business in no time.
So how can you save money to begin your start-up, and how can you continue while staying on budget once you get going? There are a few ways you can save money, so let’s jump in and discuss them.
Saving Before You Start: How You Can Take The First Steps
The sooner you start saving for your business, and the more you save, the smoother the process will go when it’s time to open. If you’re aiming for that $5,000 mark, your savings plan doesn’t have to be aggressive, just consistent. Here are a few ideas to get you going.
- Take a look at your personal finances and determine how much you can afford to set aside from each paycheck.
- Look for investors, grants, or even loans that could help cover the initial costs of starting the business.
- Eliminate non-essentials from your personal budget.
- Create a detailed list of needs vs. wants for the business so you’re not wasting money on items that can wait.
As you save up money, be sure to keep track of how close you are to your goal. Before you know it, you’ll be ready to move on to opening.
Save On The Essentials: Get What You Need On A Budget
When it comes to getting what you and your employees need, you don’t have to break the bank. You can get all of your essentials while still using money-saving tactics.
First, do some research and find out what you actually need. Once you know what that is, you can look for ways to save on it.
Let’s say, for example, that you run a construction company. You can add tools, safety equipment, and vehicles to transport your crew and equipment, to your list of necessities. Now, those are all expensive items, and if you try buying them all at once, you may find yourself struggling to keep to a budget.
However, they’re also items you need to be able to do business. The solution, if you need these items right now, is to rent them.
You can find a local shop to rent you your tools and safety equipment. Many have discount deals if you’re renting for an extended period of time, so you can find a great deal if you take the time to look.
In addition to that, you can rent a fleet of work trucks, complete with a towing package, to carry your equipment and crew from place to place. By renting, you’ll save on having to put out expensive down payments, maintenance, and storage fees for the vehicles. You essentially get an extended test drive while you decide if this is the vehicle for you.
Renting is an excellent way to keep to a budget when you’re just starting out, and save yourself from buying items you end up not needing. No matter what business you’re in, the possibility of renting what you need is something you should look into.
Save By Waiting: Don’t Try To Do Everything At Once
When you open a business, it’s tempting to try to get everything up and running at once. You want to offer all of your services, have all of your equipment, and jump straight into being the company you envision in your head. This leads to a lot of spending, and a lot of money lost if you invest in supplies before you have money coming in.
The simple way to avoid this is by not stretching yourself too thin. Consider starting with a basic list of services or products that you offer and expand as the demand increases. You can always scale up if things go well, but it’s hard to scale down if you discover you’ve expanded too quickly.
Always take time to plan your expansions carefully and ensure you have the money, and customers, to support the move.
Saving money on your start-up doesn’t have to be hard. You just need a plan and the willpower to achieve it. Use these tips as you get started, and remember, always stick to your budget.