Cost saving tips for startups (or just about any business!)
May 21, 2008 by ShannonCherry
Filed under Business
There’s sometimes nothing better for me than finding a great deal. I love it.
But when money’s tight – and it always is when you are starting a business – the fun gets very serious.
Here are some of my tips to cut initial costs:
- Ask for a discount – ALWAYS. Never settle on the first price. Ask for a discount and see what happens. I think you’ll be pleasantly surprised by the results.
- Buy in bulk. It’s usually the cheapest way to go.
- Check if it’s available elsewhere for free. Instead of buy prepackaged forms or taking the extra time making it from scratc, check online to see if it’s already available somewhere for free.
- Stretch your budget with barter. Swapping one product or service for another is a good way to avoid cash outlays and unload slow-moving inventory.
- Question every possible purchase. Do you really need that espresso maker, when just a good ol’ coffee pot will do? In other words: is this a want or a need?
I agree, except for the “buy in bulk”. I think true starts are too small and too tight on cash to buy a chunk of stuff (at a cheaper unit price) but only use over a full year for example.
I would say it is better to buy in windows of 90 days, max. For a small business, that might not be bulk stuff.
I think start ups should not compromise on any expenditure needed for promotion of business as that is the most important for high growth rate required for sustainability of any start up
Regards,
CA Ashish Ahuja, FCA
A Roaming Blogger and a CA
Indian Chartered Accountants New Delhi India
Company Formation India Private Limited
Here’s another tip: barter. Use places like http://services4stock.com and give up tiny amounts of equity to get services like advertising, lawyers, etc. Great way to cut down on startup costs and conserve cash.