Starting a small business is all about attention to details. Every penny counts, and you need to count every one.
The challenge of starting a small business on a limited budget is to not lose sight of the big picture.
So before getting into the nitty-gritty dollar-by-dollar planning, it is important to have some strategic, big-picture guidelines set up. Implementing these four tips while starting up could leave you with more pennies to count.
1. Ask, don’t pay, for help when possible
Don’t pay for what you can get for free. Now is the time to call in favors from old friends and relatives. Starting a business calls for multiple areas of expertise, and requires you to assess the areas in which you have the least knowledge. If you don’t know how to create a website and an online marketing presence, but your old college roommate started his own digital marketing company, now might be a good time to remind him of all the times you helped write term papers or cram for an econ final.
Expertise and experience are valuable commodities; seek out anyone who you think would be able to help you in small specific areas or for overall advice. It never hurts to ask, and professional favors are a valuable networking commodity. Cash in on them.
2. Minimize and/or backload payroll
Payroll is the single-largest expense for small businesses. Likewise, reducing those costs while starting up can have a large cost-cutting effect. Do not make a hire until it is absolutely necessary. Employees need to be paid, which means, of course, that to pay them, your company needs a revenue stream.
Offering equity in lieu of income for core partners or employees who you cannot do without is not just a way to save money in your start-up period, but also creates an enormous incentive in that person to see the business succeed. Also, don’t forget about the power of internships. For college students, the value in interning is the professional experience. Contact the dean’s office of local colleges to inquire about intern programs and how to get the word out at their specific campus.
3. Minimize Legal Representation
The most expensive consultant your company will need is a lawyer. When starting up, filing all the legal documents can be complicated though necessary.
However, Legal Zoom offers similar services at only a portion of the cost to incorporate online.
The site can guide you through filing the paper you need to do things like the following:
- Articles of Incorporation
- Company Name
- Business Purpose
- Registered Agent
- Incorporator
- Number of Authorized Shares
- Share Par Value
- Preferred Stock
- Directors
- Officers
4. Barter, Trade and Keep it Simple
Reach out to other local businesses that can fulfill specific needs you have, before paying for it. Offer your services in trade for theirs. Not only will this help you save money, but it will create partnerships in the business community and cooperation that could pay off in various ways down the line. Reach out to your Chamber of Commerce, who can put you in touch with businesses that might be interested in your services or those with services you could use.
