Whether you are pursuing a lifelong passion, have a unique product idea with income potential, or want out of the corporate rat race, there are many reasons why you may be looking to start a business in the new year.
Self-employment does have some downsides, and starting a business isn’t always a cheap affair. You might need to build up some savings before you take the plunge, and it’s possible a small business loan is in your future, too.
No matter what field you hope to break into with your new venture, here are some of the best ways you can save some cash as you’re getting started.
Look for interest-free loan options
If you need to borrow money to get your business off the ground, a wide range of business loan opportunities are available. However, not all loans are created equal. Some may come with a high APR or an origination fee, and you may not realize how pricey your loan is unless you do your research.
Before you commit to a small business loan, run the numbers so you know how much you’ll be paying after factoring in all interest charges and fees. That way, you can make an apples-to-apples comparison of all the lenders you’re considering.
Also, make sure to check for interest-free loan options, particularly if you only need a small amount of cash to get your business started.
For example, many 0 percent APR credit cards exist that let you avoid interest on purchases for up to 18 months — a good option if you need startup cash to buy inventory or supplies.
Shop around for supplies
As you shop around for business supplies, negotiate whenever you can. With the internet at your fingertips, it’s easy to compare pricing on everything your business needs to get started and remain operational. Research all your options to find the best price on necessities like marketing materials, office supplies, office furniture and computer software.
Choose do-it-yourself accounting
Taking care of accounting needs yourself takes some time and skill. Software options like FreshBooks and QuickBooks make it easy to create invoices, manage cash flow and keep track of business payments all in one place. Using one of these services to oversee business payroll can lead to huge cost savings over time.
Remember, you don’t have to take care of your business accounting forever. Once your business takes off and brings in a significant income, you can outsource the tasks that take up the most time.
Take your business online
Many modern companies don’t have a traditional storefront and operate solely on the web. If you choose to launch an e-commerce business, you’ll find yourself saving considerable sums of cash if you don’t need a physical office or storefront. An internet-only enterprise will let you avoid paying rent and the utilities that come with it.
Use pay-as-you-go WiFi
Whether you’re working remotely or from a coworking space, every new business needs internet access. Consider purchasing pay-as-you-go internet, as it is a cost-effective option. Passes are available in timed increments, including hourly, daily, weekly, and monthly options, so you only pay for the data you use.
The bottom line
Starting a business can be incredibly intimidating, but the process is easier to stomach if you don’t overextend yourself financially. Small savings add up over time, and these five tips can help you keep business expenses at a minimum for as long as you can. The lower your costs, the more revenue you can reinvest back into your business to help it grow.