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Startup
Tips to Saving Money
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Shortage of capital is always a common problem faced by many home business
owners. by
Steve Ma. Reyna
Contributing Author
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Shortage of capital is always a common problem faced by many home business
owners. Yet, as many of us can attest, the lack of start-up money did not
exactly deter our dream of starting our own businesses. We have found that
there are ways to get around the problem of insufficient funds. Through
creative means, many of us are able to successfully jump-start our
businesses with shoestring budgets.
(article continued below ...)
Below are ways we can save money when starting a business:
1. Work from home.
If you are struggling to start a business on a shoestring budget, a
beautiful office space downtown is the last thing that should be on your
mind. Instead, opt to work from your home. Working from your own home will
allow you to save on rental or leasing fees, fixtures or equipment, cost of
decorating or fixing the office space, and other fixed or recurring expenses
associated with an office or retail space. You can also choose to simply use
equipment and furniture in your house that are still in good working
condition, instead of hiring a designer to do a complete make-over to
transform an unused room or unutilized space into your home office. The
savings can allow you to put your limited resources to creating an excellent
product and providing good customer service.
Plus, you may be able to deduct certain expenses incurred from running
the business at home from your tax bill. If you work from home, you may be
able to deduct a portion of your rent or mortgage interest, as well as a
percentage of your utilities as a business expense. For a complete list of
what you can consider as home office deductions, visit the IRS website at
___.
2. Think second-hand.
You can also save start-up capital by buying used items for your business.
While a little extra legwork may be needed, you can get substantial savings
by buying used furniture, credit card terminals, lamps or other office
equipment that you may need. Visit online auctions such as eBay, Internet
discount retailers such as Overstock.com, online communities such as
Craigslist.com, or second hand retailers such as the nationwide Aaron Rents
& Sells chains for items you may need. You can also check out government
auctions and newspaper classifieds for used equipment.
3. Scour the auction market.
Check out online auction marketplaces such as eBay for your office supplies,
packaging and shipping materials. Online auctions nowadays offer brand new
items on wholesale or discounted prices. Chances are you will find the
prices so much more competitive (and lower!) than your neighborhood supply
retail stores. A recent check of a box of padded mailers on eBay show
listings that cost $0.98 cents per piece (including shipping) as against
$0.60 cents a piece from a well-known office supply retailer chain. That s
significant savings for your business!
4. Check out Voice over Internet protocol (VoIP).
If you have high-speed Internet connection, you may want to junk your
regular phone services and switch to VoIP technology. The technology is much
cheaper than regular phone service, plus it is easy to use with superior
features. Many small business entrepreneurs say that shifting to VoIP has
reduced their phone bills by as much as 30 percent, and they get phone bills
that are easier to understand. The downside is that the VoIP system works
best for businesses with 10 or less employees, and may suffer some hiccups
related to Internet downtimes. Some of the VoIP providers include Vonage,
Covad Communications, Packet8.net, VoicePulse.com and Nuvio.com, among
others.
Go to the Next
Tips: Buying Equipment
About the Author:
Steve
Ma. Reyna is a staff
writer of Power Homebiz Guides.
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