Business Mentor: Minimizing unnecessary startup expenses

Armando Bartolome

Posted at Apr 30 2022 07:53 AM

Starting a business is just the first step in fulfilling your dreams. 

The excitement of starting up a business is usual. It is like looking after a child and watching it grow. As days pass, business operations may stumble over a few things that may make you need to add more capital to keep the business going. Your goal is to be a wise entrepreneur. So, let me help you analyze what you need to do to save money as you start your business.

Cut rental fees
As the pandemic spread in 2020, several small businesses sprouted and took advantage of selling online. Some did not last long, while other entrepreneurs found their passion, such as in cooking or baking, and grew their business using social media. I know small businesses that continue to prosper even without a physical store. 

If you think that the kind of business you wish to start is something that can be done at home or a smaller place, this can help you save money by cutting the overhead cost on rental fees.

Lease equipment
There may be equipment your business needs from time to time. Since you are only starting, consider leasing the equipment in the meantime. Only purchase if specific equipment is necessary for the full function of the business.

Ask for discounts from suppliers
Ask for the best price the supplier can give you. For example, if you need to buy in bulk, ask if there is a minimum purchase to avail a discount. Or you may also take advantage of cash transactions with a discounted price instead of having a credit limit that may not allow you to avail a discount. 

Don't be shy to ask for bulk discounts. You aim to save as much as possible but not sacrifice the quality of what you offer to your customers. 

Don’t overhire, consider outsourcing
Payroll is ultimately one of the most significant expenses you need to face every month. Ensure that you have the correct number of staff required for your business. Let your team know their responsibilities and which among these responsibilities can be shared among them to avoid overstaffing. However, if you think you would need more hands for your business, consider outsourcing.

Look at alternative marketing and advertising
No business can survive without having great marketing and advertising. These are needed to increase your visibility. Some new entrepreneurs tend to splurge on this because they want to be instantly famous. However, don't fall into that trap of spending thousands without knowing if the strategies presented to you are feasible. 

Consider using alternative marketing strategies like social media marketing and search engine optimization, as these can help boost brand awareness without needing to spend too much. 

You can also make use of guerilla marketing. It is an excellent alternative to traditional marketing that thrives on creativity and original content. Examples of guerilla marketing are stickers, graffiti, and undercover marketing. These are inexpensive yet can be compelling strategies.

Look for other individuals or businesses that you think can help you. But instead of paying for what you need, try negotiating for a trade. For example, if you have just started your business and want to grow a broad online exposure, you need to look for influencers who would promote your products in exchange for goods.

You don't need to be too frugal to be able to save. After all, being in a business means that there should be a constant cash flow. But if you can find better ways to cut corners, then do these so that you can use the money you have saved for more important things in running your business.

Reducing your expenses can dramatically improve your business and make it more financially stable. 

For more information, you may contact Armando "Butz" Bartolome 
by email:
FB Page: Butz Bartolome


Watch more News on iWantTFC