Frugal Practices for New Entrepreneurs to Live By
Starting a business of any kind will require a financial investment at some point. Whether it’s purchasing furniture for your home office or finding the capital to launch your website and market your business, there will come a point in which you have to shell out money. Though this shouldn’t discourage you from bringing your ideas to life, it should caution you to think wisely from the very beginning. Learning frugal practices to curb spending and increase financial resources is the best line of defense you have when you are just starting out.
One of the most difficult tasks for startups is learning how to generate the funds to keep their business going. While starting off in your home office with minimal resources can help you get the business off the ground, income is ultimately what will keep your business running. There are several avenues you could venture down to learn how to generate the income to fund your business. Some of the more popular options include:
Invoice Factoring – Companies like TBS Capital Funding offer invoice factoring services to small businesses. Ideally, when you invoice a customer or business for services rendered, instead of waiting for the client to pay the invoice, you’d receive cash upfront from the invoice factoring service provider. This gives you cash in hand that can be used to grow your business.
Crowdsourcing – Though the term was developed in 2005, crowdsourcing is a fairly new but popular concept for generating cash. Essentially small business owners or entrepreneurs are able to request donated funds from a group of individuals – particularly through online platforms. The benefit to this form of income generation is the fact that the funds do not have to be repaid and can be used for whatever your business needs are.
Fundraising – A tried and true method for earning cash for your business would be through fundraising opportunities. Hosting events, selling merchandise, and other fundraising options allow you to get your company brand out there while also generating supporters from the community.
3 Frugal Tips for Business Startups
As you iron out which method of income generation might work best for you, let’s go over some ways in which you can cut back on expenditures and save your startup money.
1. Used Furniture and Equipment
There’s no need to deck your office out in high end furniture and office equipment when you don’t have consistent income coming in. The best thing you can do for your business is to look for used or refurbished items online, in secondhand stores, and even at local flea markets. You’ll be surprised at what treasures you can happen across, and depending on the quality of the products it can last you for a while. When purchasing refurbished electronics, be sure that it is from a reliable source and that it comes with a warranty just in case something should go wrong.
2. Utilize Free Software
No matter what your software needs are you can typically find affordable options. While the free versions may not have all the bells a whistles you see advertised on paid versions, it can give you a head start in business. Whether you’re looking for word processing software or an accounting application, always check out reviews on free products before opting to make an investment. Once you’ve started generating a decent income, you can invest in higher quality products.
3. Barter Your Services
When you’re in need of paid services don’t underestimate the value of your own skills and abilities. Bartering services with another small business owner can be a great way to network, generate new clients, and tend to your own business needs. For example, if you’re a virtual assistant in need of a blogger, offering basic clerical services in exchange for a few blog posts benefits you both. Neither of you has to shell out cash, but you both keep business running smoothly.
There’s no denying that there are a lot of obstacles to overcome as an entrepreneur. You probably already know that your first few years of business are bound to be a struggle financially. However, by developing sound strategies for generating income and also implementing frugal changes, you can weather the storm just fine.
Photo courtesy of: FirmBee
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