Starting your own business can be a scary and exciting time -- and a costly one too. When launching your own business, it's easy to want to invest all your time, money and resources into doing things the right way.
But considering that most businesses fail within the first 18 months, it's imperative that you learn how to bootstrap your business in the beginning and grow organically.
Here are tips on how you can keep your business costs low and build a strong foundation for your business.
Evaluate Your Needs
In the beginning stages of building your business, separate your needs from your wants. At this stage of the game, you'll want to operate on a bare bones budget so that you can turn a profit. When you are starting out, it's easy to treat your business like your baby and spoil it and want to get everything to ensure its success. It's totally understandable, too, but you'll want to keep things lean until you form a sustainable business model and a consistent profit.
Ask yourself what you actually need to run the business? Then, take a look at all of your expenses currently. Are all of them required to run your business? If not, then ditch them or find a cheaper alternative.
For example, as a business owner you will want accounting software to help you balance your books. You could hire an accountant to do it, but using an affordable online accounting software can save you tons of money each year. These tools are fairly intuitive and can help keep you organized and on track.
If you are going to keep certain expenses, ask if you can find a cheaper deal. Of course, you will want to maintain quality as well, but look into all your money saving options.
Buy In Bulk
A lot of little things like notebooks, pens, printer ink and more can add up quickly when you first start a business. Look into buying bulk or at a discount warehouse for your office needs. For things like paper and pens look into your local dollar store to find affordable office supplies.
Hire Out When Needed
This part may seem counter intuitive when trying to keep costs low, but as a business owner you should focus on your strengths and hire out for your weaknesses. So if you are a creative type who loves to focus on product development, but gets lost in the details of administration, then hire someone who can let you focus on what you do best.
Doing so can help you focus on your strengths and what things you bring to the table. As a business owner, you wear many hats. Unfortunately this can be a drain on your resources as well as your creative energy. Think about it this way. Let's say you are really good at what you do, and your pay rate is $40/hr. But when you do something that isn't one of your strengths, it will take you twice as long to accomplish that, in turn costing you money. In this case, it is cheaper to hire out for your weaknesses, and focus on what you are good at.
Using these three tips, you can build a solid business and focus on growing. Be sure to track your success and progress and check in weekly with your budget and expenses. You want to make sure you are growing your business at an acceptable rate and avoid being a statistic. Starting a business can be costly, but if you play your cards right, you can bootstrap your business and build a strong foundation for your future.