It's no easy feat to start your own business, and it's certainly not cheap. But if you're among the 50% of businesses that succeed in their first year of operating, it can definitely be worth it.
With 1.14 million small businesses in Canada, 28 million small businesses in the U.S., and 400 million entrepreneurs around the world, the competition to get your products and services on the table is fierce. It's crucial to minimize the costs of starting your business as much as possible since the money you're putting into your startup is coming out of pocket.
Here are a few ways you can save money while putting your business on the road to success.
Run your business from home
Some new business owners will wait until they can save up enough money to rent an office space before they start putting their products and services on the market. But it's easier, and cheaper, to run your business out of your own home first.
Starting out in a home office gives you a safety net if your business plan starts to go south. It also saves you the stress of paying additional rental costs every month.
Run your business digitally
Another reason why it's a good idea to run your business from home is that it gives you the chance to run your business digitally. Many businesses today are online-only. In fact, the revenue for the global e-commerce fashion industry alone is expected to reach $712.9 billion by 2022.
Running your business digitally gives you the chance to save money on renting a commercial office space. It also gives you the chance to focus on expanding your brand awareness and improving your website's design to appeal to new consumers. Studies show that between 70% to 80% of consumers will research a business online before deciding whether or not to visit the store in person or to buy from that business.
You can save even more money going digital by taking advantage of free software and buying used equipment. You don't need to have the latest technology just yet to get your business off the ground.
Hire carefully and with intention
When you're a startup, the people you hire are extremely important. They're your business partners, your brand ambassadors, and your ticket to getting off the ground.
It's sometimes recommended to hire employees that have fewer skills or hiring interns to help save on costs. But hiring inexperienced workers to save money can end up doing your business more harm than good.
The hiring process is time-consuming and expensive. And you lose more time training your new employees as they come and go.
Instead, hire your employees carefully and with intention. You want experienced workers you don't need to train long and don't need to monitor. You also want experienced workers who will be able to catch issues that may otherwise set your business up for failure.
Experienced employees keep you from needing to worry about a high turnover rate, poor work quality, and poor customer service, which can cost you a lot of money and customers in the long run.
There are many ways you can save money when you're still developing your business and coming into your own. By working out of your own space, optimizing your website for e-commerce, and being smart about how you hire, you can cut the costs of starting your business on the right foot.