Ways to Keep Your Startup Business Costs Low
In today’s economy greater numbers of people than ever before are quite literally being forced to go into business for themselves. As a result of the market crash within the last decade and the eventual downsizing going on within many companies around the country, there are huge numbers of professionals that have been put out of a job. Even though they say the economy is recovering, many of those jobs haven’t been recreated which has left millions of Americans struggling to survive.
If you are among those who are seeking to go into business for yourself due to a lack of work within your field, there are ways to survive until your business takes off. However, the one thing you will need to do is focus on ways to keep your startup business costs low.
Don’t Give Up Benefits until You Turn a Profit
Before looking at some of those ways, one thing you should know is that even though you are starting to go into business for yourself, if you receive government aid you don’t need to give up those benefits until you can show a profit. For example, are you involved in the Lifeline free government cell phone program? If you look on their website, you will find that this program makes a cell phone available to low income persons who meet specific criteria. Of course you need to report any earnings to your local social services agency, but it will typically be months before you actually make any money. It is during this time that you need to keep your startup costs low in order to turn that corner as quickly as possible.
Don’t Pay for Needless Expenses
One of the main mistakes many entrepreneurs make is to pay for things that aren’t exactly necessary. It may not be important to pay for an office at the very beginning if you have space available you can use at home. While there are zoning and planning codes that need to be upheld, most areas of the country allow you to have a home office if you aren’t having major amounts of foot traffic in a residential neighborhood. The point being, don’t pay high rent on an office if you can work from home.
Grants vs. Small Business Loans
Another thing many people aren’t aware of is that they can get government grants that amount to free money when starting a business in the United States. There are grant writers out there who are able to help you, for a small fee, apply for a government grant which is money that does not need to be paid back. If you were to take out a small business loan, that money would eventually need to be repaid but a grant is awarded based on available funds and your ability to prove you meet the criteria.
Too many jobs were never recreated after the bubble burst, leaving millions of professionals out of work. It is often hard to find a new position after being out of work for any extended period of time so striking it out on your own sounds like a good idea. It just might be your salvation, but only if you can find a way to keep costs low and not go into debt from the outset. Remember to cut corners wherever possible and don’t change your government sources of income until your business turns a profit. By living and working frugally you stand a greater chance of success, so always seek ways to keep your startup business costs low.