Top 5 Small Business Venture Money-Saving Tips

Top 5 Small Business Venture Money-Saving Tips

When starting a new small business venture, every cent matters. You probably don’t have loads of cash to chuck around right now, which means you’ll have to be extra careful with expenses and create and stick to a small business budget.

If you want to ensure its long-term success, you’ll need a winning idea AND the ability to squeeze the most out of every dollar available to you. 

In this article, we’ll explore five creative ways to get the most bang for your buck and ensure that “buck” turns into something much more substantial.

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1. Get a Balance Transfer Credit Card

The credit card you choose for your small business venture is crucial. You can save lots of money with 0% balance transfer credit cards, as they allow you to pay no interest for a certain period of time. Balance transfer cards allow you to borrow money through the card without paying an interest rate for a specified period of time, so they are a fantastic way to make sure you’re spending money as efficiently as possible when using a business credit card, and especially when endless funds aren’t immediately available to you.

When trying to decide on a balance transfer card provider for your company, you’ll also want to consider the other benefits of the card, such as cashback opportunities, or discounts where you’ll be regularly spending. Think about your inventory, your office if you have one, and what you need to form a smooth flow for the day-to-day running of your business.

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2. Reduce Waste of Every Kind

Whatever small business venture you want to start, there’s always the potential for excess waste. If you’re manufacturing consumer goods, it’s always a good idea to make sure your production process is as efficient as possible and that there are as few mistakes as possible. Not only is effective waste management better for the environment, but you'll be spending less on packaging and saving on items you didn’t really need if you can recycle what you already have.

Waste doesn’t “just happen” in the realm of money. Especially when starting out, you’ll want to make sure your internal processes are as tight as possible to avoid wasting time and to ensure that everyone is working efficiently. Don’t waste precious minutes on redundant meetings or tasks that don’t benefit the company. You should also guide your employees on ways of working so that they complete their tasks as quickly as possible. 

3. Give Your Employees a Stock Option

When you’re starting out, your first few employees take a significant amount of ownership over a company’s success. You can reflect this by giving them a measure of actual ownership over your startup, by offering them shares in exchange for a lower salary than you might otherwise be able to afford. This is a fine line to tread, and there are no hard and fast rules as to how to balance paying your employees in stocks and in cash, so it’s worth researching in-depth before making any big decisions.

Giving your employees stocks provides them with extra motivation to ensure the business's success. It also saves you money in the short term, although you do want to strike a good balance between saving at the start and not giving away too much of the business. 

4. Only Spend on Necessities

This is a big one. When your small business venture is young, you don’t have the luxury of having some things you’d take for granted in a big multinational corporation. You’ll have to content yourself with spending only what you absolutely need to. This means you might not be able to have fancy Christmas parties, an expensive office space, an ultra-modern coffee machine, or a triple-figure bar tab for after-work drinks. Every business development decision you make will need to have costs factored in, including your marketing strategy and long-term investments.

You also won’t be able to afford the most expensive software, so you’ll need a team creative enough to make do with what you have. You won’t be able to hire someone for every single role, so your employees will need to wear multiple hats and have the flexibility and desire to change and adapt their roles and responsibilities as the business grows.

Related Article: You Need to Do Your Personal Bookkeeping (Like a Business)…and You Hate It…Now What?!?

5. Look for a Deal

It’s important to look for cut-price deals wherever you are in your business’s life cycle, but it is especially vital when you’re starting a new small business venture. Don’t make any major spending decisions without exploring all your options because there’s probably a cheaper way to get what you want or do what you want to do. 

Often, you’ll be able to negotiate lower prices with suppliers when you order in bulk or set up a standing order. You should also take advantage of your contacts to uncover these sorts of opportunities: it’s always easier to find a deal when there’s a pre-existing relationship between two parties. 

Remember—you’re dealing with other businesses as a business yourself. See if there are any deals you can offer to get these relationships going or build up your network. Not only will you open yourself to further deals down the line, but you may generate more revenue for yourself while you’re at it.

Small Business Venture Money-Saving Tips Summary

Starting a small business venture is incredibly exciting, and there are few better feelings than watching an enterprise you started get off the ground. However, if you want to give your startup the best chance of success in the long run, you’ll need to maximize every dollar you spend, especially at the start.

In this article, we’ve discussed five ways to save money when starting your business: keep waste to a minimum, explore your credit card options, supplement your employee payment in shares, look for opportunities to pay less, and only spend money where you absolutely have to. 

Now, get back to work on your startup!

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Editor at Play Louder !

Kristin McCasey is a partner and editor at Play Louder! She is a former award-winning film editor turned work-at-home-mom blogger. Three years after their son was born, she and her husband left their Los Angeles careers to have more time as a family. She now works with her husband, Joe, on their finance blog, teaching others how to achieve financial independence.