Categories: AdviceSocial Media

How I Started My Business on a Shoestring – and How You Can Start Saving on a Small Business

David Bakke is a small business owner based in Atlanta. He writes about his experiences and shares his business and personal finance tips on the blog, Money Crashers.

So you’re an aspiring entrepreneur, and you’re looking for ways to shine. Whether you have unlimited funding or are on a tight budget, the best method to build profits quickly is to trim expenses. Before I run down some areas in which you can do just that, here’s how I started my own business:

My Story
My wife graduated college several years ago, and we were left with a pile of old textbooks. I knew selling them back to the campus bookstore wouldn’t be profitable, and after investigating several buyback websites, I determined that I could still earn more money. So I opened a seller account on Amazon, listed the books, and sold the books for much more than I ever thought possible. Eventually, I looked around my house for other items to sell and earned even more money. Then a colleague told me about the website FatWallet, a coupon aggregator that offers hefty discounts at a variety of retailers. Using these coupons, I invested my initial reselling profits and the majority of my emergency fund to purchase discounted laptops and small electronics.

This move turned out to be quite profitable. In 2010, with more than $40,000 in gross product sales, I netted nearly $6,000 in profits. Other than some Scotch tape, packing supplies, and the products, I had almost no initial cash outlays for my venture, which I continue to operate from my home.

For those with grander plans, here are four areas that provide ways to save on starting a small business:

1. Office Space
Like the residential housing market, commercial real estate space continues to struggle and is available at deep discounts. Check with local real estate agents on unoccupied office space in your area. And don’t discount an online search, such as on the website LoopNet, a comprehensive nationwide clearinghouse for listings and availabilities. Once you hone in on space that will work for you, negotiate the price aggressively, as many of the owners are desperate for renters.

2. Office Supplies
Look for used and free supplies. Check out pre-owned computer equipment on eBay, Amazon, and Craigslist, and for amazing freebies, visit the website Freecycle. As long as you’re willing to pick it up, you can score quality used office furniture, computer monitors, and more. To purchase discounted paper, pens, sticky notes, and other office supplies, sign up for a loyalty program at your preferred office supply retailer, and you will be alerted via email any time a sale is announced. Whenever you make a purchase, always use a cash back rewards credit card.

3. Marketing
Advertising your business is always a necessary expense. However, there are many opportunities free marketing online. Social media marketing is simple and can help you to reach thousands of potential customers. Open accounts on Facebook, Twitter, and LinkedIn, and provide a link to your website. Do your best to make the experience interactive for readers – consider holding contests, offering giveaways, or even supplying coupons to those who refer your business to friends. And always respond to all queries and comments – whether online or in person, the customer should always feel valued.

4. Staffing
When you launch a business, wear as many hats as possible to save expenses. For short-term projects that may be outside your realm of knowledge (such as IT issues, logo designs, and website creation), consider outsourcing to freelancers, or bring on temporary workers, rather than committing to a full-time staff. The websites Freelancer and Guru are good places to find these folks.

When planning to launch a business, be sure to choose an area you’re particularly well-versed in or very passionate about. It’s hard enough to start a new company without having to worry about learning the details of the industry. As long as you work within a realm that you are a master of and watch your expenses every step of the way, there is no reason you can’t succeed as a small business owner.

What other ways can you think of to save on business expenses?

Deborah Sweeney

Deborah Sweeney is an advocate for protecting personal and business assets for business owners and entrepreneurs. With extensive experience in the field of corporate and intellectual property law, Deborah provides insightful commentary on the benefits of incorporation and trademark registration. Education: Deborah received her Juris Doctor and Master of Business Administration degrees from Pepperdine University, and has served as an adjunct professor at the University of West Los Angeles and San Fernando School of Law in corporate and intellectual property law. Experience: After becoming a partner at LA-based law firm, Michel & Robinson, she became an in-house attorney for MyCorporation, formerly a division in Intuit. She took the company private in 2009 and after 10 years of entrepreneurship sold the company to Deluxe Corporation. Deborah is also well-recognized for her written work online as a contributing writer with some of the top business and entrepreneurial blogging sites including Forbes, Business Insider, SCORE, and Fox Business, among others. Fun facts/Other pursuits: Originally from Southern California, Deborah enjoys spending time with her husband and two sons, Benjamin and Christopher, and practicing Pilates. Deborah believes in the importance of family and credits the entrepreneurial business model for giving her the flexibility to enjoy both a career and motherhood. Deborah, and MyCorporation, have previously been honored by the San Fernando Valley Business Journal’s List of the Valley’s Largest Women-Owned Businesses in 2012. MyCorporation received the Stevie Award for Best Women-Owned Business in 2011.

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