Whether you’re funding your business yourself or seeking investors (for more on the pros and cons of each, check out our article on the subject here), it’s always a good idea to keep costs as low as possible when you’re first starting out. Here are our tips for saving some cash so you can get the most out of your business in its beginning stages.
Don’t hire employees until you absolutely have to.
In your first year, do as much of the work by yourself as possible. This will allow you to get to know your business inside and out, so by the time you do hire people, you’ll know exactly what you need from them. Many of the specific tasks you’ll need help on won’t come up often enough to occupy the time of a full-time employee, so hire contractors for those tasks when they do come up, or hire one multitalented person who can take care of many tasks. But don’t hire out the hard parts of your business until you’ve figured them out for yourself–if you pass these tasks off, they could be fixed inefficiently and you’d be none the wiser.
Online businesses often don’t need a physical location (especially when it’s just you), so you can save money on office space by working from home or anywhere with an internet connection. Doing this will give you a lot of extra cash and an edge on your less-frugal competitors.
Don’t cheap out on contractors.
As the saying goes, “If you think experts are expensive, wait till you hire an amateur.” If you’re going to hire someone to get something done, get it done right the first time, rather than many times cheaply. Sometimes cutting costs means investing in quality work up front.
Get a good lawyer and a good accountant.
Lawyers are always going to be expensive (use them only when you need them!), but again, investing in quality will end up saving you money in the long run. They can save you hassle by keeping you on the right side of the law as you set up your business, can write contracts to protect both you and your employees, and, when used in conjunction with a good accountant, can structure your business in a way that can save you a lot of money on taxes.
Follow these tips, and you’ll be well on your way to entrepreneurial financial freedom. Best of luck! And if your business needs an app, give Thryv a call–we’re happy to help.