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All sorts of expenses are involved in building a business, and so if you’re an aspiring entrepreneur then you need to be savvy about saving cash wherever you can.
The opportunities for doing so are ample, so let’s discuss a few cost cutting measures you can make as you launch a new company of your own.
Leverage Free Online Tools and Resources
When setting up a small business, many entrepreneurs do not realize the number of free online resources available that can help them save money.
For instance, there are web-based programs designed specifically for small businesses such as accounting software, customer relationship management (CRM) systems, email marketing platforms, and more.
All of these tools provide basic features at no cost, or offer freemium options with paid add-ons for additional functionality.
Additionally, there are countless websites offering helpful advice on how to lower costs related to running your business, from tips on managing finances wisely, to finding cheaper suppliers and negotiating better deals with vendors. Make sure you take advantage of all the free information out there before investing in costly consulting services!
Get an Extra Phone Number (Not a Separate Phone)
Do you need to make or receive calls for your small business? You can save money by getting an extra phone number for incoming and outgoing calls, instead of buying a separate handset and line to handle this.
Being able to use one device, such as your smartphone, while still having the benefit of two numbers is an obvious advantage from a practical perspective. Plus, it helps keep your personal and professional life separate.
Re-Evaluate Your Office Space Needs for Maximum Efficiency
Office space is another one of the biggest costs to consider in the context of starting a small business. Many entrepreneurs overlook the importance of evaluating their needs, and end up spending more money than necessary on square footage or equipment they simply don’t need right now.
Before committing to any long term leases, take some time to assess your actual requirements in terms of size, location, on-site features (e.g., parking), and other considerations such as furniture and/or technology.
You may also want to look into short-term solutions, like virtual offices that provide access to meeting rooms when needed without having an entire physical office space dedicated solely for your business use. This has the potential of saving hundreds, if not thousands, each month.
Take Advantage of Tax Breaks for Small Businesses
As a small business owner, you should be aware of the tax breaks available to help cut your costs. It can take some research and planning to make sure that you are taking advantage of all possible deductions or credits, but it is definitely worth the effort.
You should look into local incentives, like enterprise zone tax abatements, as well as federal programs such as hiring incentives and energy-efficient building upgrades.
If your business meets certain criteria in terms of size and revenue thresholds, you may qualify for an R&D credit which could have a significant cumulative impact year over year.
Consulting with a qualified accountant or tax adviser can prove invaluable when it comes to making sure that you’re not missing out on any potential savings opportunities. Don’t hesitate to seek professional advice in this regard.
Final Thoughts
An efficiently run small business is one which has the best chance of surviving in the long term, and keeping costs in check is central to this. Now that you know where to start making savings, you can implement frugal strategies immediately as part of your business plan.
