Starting a business can be expensive, but The Associated Press’ Joyce Rosenberg offers some money saving tips to help new companies keep costs low. Michael Volpatt, co-owner of a public relations firm, Larkin/Volpatt Communications, notes that when he started his small business he had no choice but to keep costs to a minimum and that “financial stability is about sustainability.” Rosenberg notes that there are several ways to keep expenses down, with one of the main being working at home or in a friend’s space. In addition to low overhead, home-based businesses can deduct expenses such as rent or mortgage interest, utilities, and repairs on their taxes. If working from home doesn’t work for you, try to find an affordable space to rent from friends or family. Her next suggestion is to decide whether it is worth your time to handle tasks that you are unfamiliar with on your own or to get help with things like accounting and legal issues. Rosenberg suggests employing accounting students to assist with record-keeping and looking to friends and family to see what resources they can offer you. Next, Rosenberg suggests using independent contractors. A small business does not have to pay for benefits and employment taxes for an independent contractor. It is important to keep in mind that there are laws that must be complied with when you decide to use an independent contractor versus an employee. Lastly, she suggests using technology to streamline your operations. The number of business services available via the Internet to help companies keep costs down continues to grow, including online shipping and mailing services. Additionally, you can utilize Facebook and Twitter as marketing tools for your business. Lastly, SCORE counselors are also available to offer free advice to small business owners on how to cut expenses.
To make a startup go, keep the expenses low
Published: July 28, 2010Posted in: Articles
My name is Chinwe Onyeagoro and I am the editor of New Equity Daily. Five years ago I started a small business called O-H Community Partners in Chicago and one of the lessons I’ve learned is it’s not enough to simply concentrate on producing a good product or providing quality service or offer the best price. There’s an extra component that is crucial to the survival and growth of our businesses: funding and financing whether we are starting up or trying to maintain our operations or planning to grow. Without adequate funding, small businesses like ours run the risk of stagnating, or even closing. Financing is out there. It’s available. It’s just harder to find.