Teach You 10 Ways To Save Money In The Start-Up Stage

Here are 10 ways to save money at the start-up stage, which can help you effectively control costs.

If you are like most aspiring entrepreneurs, you may not have too much wealth.

So if you want to start a business, you have to be frugal with your money.

"At the very beginning, when you want to start an enterprise, you really want to save costs and make the best use of every money to bring more benefits to the business."

Jamila White (Jamila White) said.

She is one of the co founders of the bootstrapbabes.com blog website, which has a wealth of ideas and ideas to save money for entrepreneurs.

Check out these tips from experts and entrepreneurs who have been digging into gold. They can be less expensive and practical and encouraging.

1. frugal life.

Ryan Ellis, 23 years old, and Aaron Haukton, 27, Aaron Houghton, had the idea of founding iContact company when they were in University. In 2003, they founded the e-mail marketing service company formally, in 2003, Ryan.

Ellis recalled the beginning of his career: "we live in an office, sleep on a cattail, cook on a barbecue rack, and eat a lot of ramen noodles.

This is a typical entrepreneurial life experience.

"We do everything we can to save money and increase revenue," he said.

Ellis said one of the most striking things is to look around shopping cards in discarded office chairs to find shopping vouchers so that they can get $50 discount from Staples.

Today, iContact's annual sales reach about US $15 million.

Spending wisely in business and life can help you save more money to develop your business.

Search for online coupons to buy everything you need -- from office equipment to household food, Donna Maria Maria (Donna Maria Coles Johnson) says she is another founder of bootstrapbabes.com website.

She emphasized that not only should we save as much money as possible, but we can also accumulate small amounts of money.

2., use creative financing.

Starting a business does not mean looking for venture capital -- it can use your personal capital and funds from relatives and friends, White said.

In addition, you can also find free funds in the form of bonus or donation from the business plan competition.

White said, "you need not pay for these funds, nor do you need to consider the issue of return."

Local businesses, incubators, economic development centers, small business development centers and other agencies can seek information about the free source of funds in the region.

3. suitable scale.

If the first production line is too large, the more capital it needs to start up.

Do not think that the market demand is large, we should seize the opportunity to work hard.

Use the existing funds on hand to see how large the production scale is.

Coles Johnson said: "Research on the industry, and then determine their niche market."

4. of funds are spent on factors that generate revenue.

The key to small budget entrepreneurship is to use smart resources wisely.

The use of funds in key employees greatly helps Michael Colitz (Michael Kriz).

At the age of 41, he founded Acclaro Inc. to provide plation services for companies operating overseas or expanding overseas.

Founded in 2002, kleitz, who has a background in the plation service industry, employs only a wide range of connections to hire only those who can directly generate income.

"We have very short capital to start up, so when we meet customers who can pay for a service, we hire people for this service," he said.

We don't hire specific people.

All businesses are like this: first, customers promise to buy a service and then hire someone to do it.

5., marketing through media and word of mouth.

Let others sell for you, this is the cheapest but most effective way of marketing.

Coles Johnson said, we can start with finding local small media.

If you want to spread corporate brand, go to local TV stations, newspapers, community reading presses and industry publishers, and introduce yourself as an expert interview to journalists.

She said, "first find out what media you have in your area, and then see if there is any way you can work."

When kolitz was founded, his other saving strategy was not to spend money on marketing.

He firmly believes that providing first-class services will attract repeat customers, and satisfied old customers will also recommend new customers.

At the beginning of the launch, colitz also focused on direct contact with potential target customers to attract business. This strategy helped him increase his annual sales to $10 million and set up a branch in Buenos Aires of Boston, San Francisco, Paris and Argentina.

6. employees are employed flexibly.

Maybe you don't have enough money to hire full-time staff, but you can seek outsourced services or find temporary help.

Kolitz used outsourcing services to complete some of the administrative functions of the company.

For example, he paid a $1000 design company website to a freelance writer, but the contents of the website were all written by kolitz and his few employees.

Alison OKelly (Allison OKelly) is an expert in the field of employee dispatch. When she founded "Mom Corps Inc", she came up with many clever employment plans.

The company dispatched a company to help employers establish contacts with the flexible job market (for example, those mothers who had chosen to leave the traditional working environment).

Since the company was founded in 2005, she has hired several outsourced staff, which helps to control the general overhead of enterprises at a lower level.

"All my employees work in their families, so they use their home computers and phones, and we do not have the cost of any basic equipment," said OKelly, 35.

"The salesmen we employ can only earn the corresponding commission if they really earn money for the company."

In addition, OKelly is a well-trained certified public accountant, so she has never hired any bookkeeping personnel outside.

7. learn to negotiate and bargain.

Many startups do not realize that everything depends on negotiation - from technology costs and business account fees to web designers and printing companies.

"Just putting a price tag on something doesn't mean there's no room for bargaining," White said. "The worst thing they can do is tell you," no, "but too many entrepreneurs don't even ask if they can still make a counter-offer.

If you pay in cash, it will be more conducive to bargaining, Coles Johnson added.

OKelly's company now sells about $2 million a year, and at the beginning of the business, she will bargain with suppliers to control costs.

OKelly said, "you can say," I don't have enough money to do this. I only have so much. What do you want to do? "

8. seeks cheap technology tools.

With so many low cost and free software solutions, all you have to do is find out.

For example, the data backup service provided by Carbonite is only $4 per month.

"10 years ago, online marketing tools were very rare, and the prices were very high," White said. "Now these tools are getting better and cheaper."

You can build and market your business with all the technology you can find, from blogs to e-mail news lists, Coles Johnson said.

"Nowadays, entrepreneurs have many advanced technologies at hand," he said.

9., make good use of credit cards.

Although the important goal of early business is not to get into debt, good use of credit card purchases still has many advantages.

When you need to purchase a company, you can use personal credit cards or business credit cards that can provide rebate rewards or cash rebates.

"Be very careful before you pay your debts and carefully study your options," Coles Johnson said.

"Make sure that you really need (and don't want) that thing you want to spend money on."

You can use your credit card every month or use the credit card to avoid high fees. You can get cash rebates, travel rewards or airline mileage. There are many similar projects.

"We are not in favour of accumulating credit card debt, but the use of credit cards with incentive schemes is conducive to capital turnover and allows purchasing activities to play an active role in the company."

White said.

10. of the shares are paid as salaries.

Lack of cash flow in the early stage does not mean you can't get first-rate talent.

If you look at what Ellis and Hauck did when they started the iContact company, you could also try: part of the employees' salaries are in cash and some are in the company's equity.

"When we hire the first employee, we pay $1000 a month plus part of the company's equity.

We are very creative and often use equity payments to reduce salaries and expenses, "Ellis said.

"In the first two years of the company's startup, my partners and I didn't get paid from the company, and we did everything we could to reduce costs."