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Thought Leader Series: 3 Ways New Businesses Can Save Money on Startup Costs

Zac Johnson is an entrepreneur who helps small businesses and startups expand their reach online while also hitting their target audiences. Learn more about Zac at his blog.

Successfully starting your own business is something many of us dream to one day accomplish. In previous years, beginning a local or retail business was tough. You’d need to have investment money, find a retail location or office space, possibly need to pay a franchise fee, and of course you’d also need to hold inventory, while at the same time training and hiring staff. Geez – reading all that, it’s hard to believe anyone could find financial success by running a startup.

Saving Money on Startup Costs

But that was then and this is now. It’s not only much easier to start a business of your own, but it’s also more cost effective and easier to get financial support. Through the Internet, the concept and complexities of starting a business have completely changed for the better. No longer will you need a retail location, staff, or (possibly) to hold any inventory.

Read on for three of the most effective ways you can save money while planning for your startup. Implement these methods to make every dollar go further, while improving the overall success of your business.

Save Money By Running a Virtual Office

As mentioned, there is simply no need for your business to have an expensive retail location – especially if you’re a single entrepreneur bootstrapping your business. By using a domain name, website and quality hosting, you can be sure that potential customers will view your online business as being just as reliable and safe as any other business.

This means you can scrap the high costs of monthly rent, insurance and management costs, while putting that money back into your business in other areas. Should you need to expand your business to accommodate for staff and expansion, there will always be locations for rent and purchase.

Cut Costs With Independent Contractors

Gone are the days when you need to physically bring people into a physical space to train, hire and house your work force – now you can do it all through remote hiring and/or outsourced virtual assistants. By hiring virtual contract employees, you can find the best people for the jobs from anywhere in the world while cutting expenses associated with maintaining a physical workplace, paying for employee benefits, setting up insurance plans and much more.

(To learn more about the difference between hiring independent contractors and employees, check out this page.)

Utilize Online Management Tools

By using online management tools, you can take better control over your business’s inventory, services, customer data, and financials – and at a fraction of the cost of hiring an office manager or other employee to keep everything organized and up to date.

Want to incorporate your business or set it up as an LLC, obtain legal advice and counsel, track incoming and outgoing invoices, etc.? It can all be done with one of the many online management tools available.

As you can see, there are plenty of ways to not only cut costs when going forward with your startup, but to also become more efficient in the process.

To find the right business funding solutions for your startup, contact us. We’d love to help you reach your business goals!