As any experienced entrepreneur will tell you, starting your own business comes with major sacrifices and many of those sacrifices are to your personal life in the form of financial cut backs and a lack of any thing resembling a social life. In this article we will discuss how to free up as much capital as possible for your fledgling new business and cut your personal expenses in the lean start-up period of your business.
2) Reduce entertainment expenses – We all like to go out to eat and catch a movie but as a new entrepreneur you will soon realize that the $40 a night out costs is better spent on getting your new business off the ground. Besides, you won’t have time for dinner and a movie when your working 80 hour weeks!
3) Put your savings on hold – As counter-intuitive as this may sound pausing your retirement savings is sometimes a good choice. As a cash-strapped entrepreneur holding off putting money into your IRA is a much better option than building high-interest credit card debt or taking out unnecessary loans.
4) Hire freelancers – Instead of hiring a couple of employees who have average skills across a wide variety of areas consider hiring freelance experts. This way you get industry experts and you don’t have the overhead of insurance and taxes.
5) Use shared office space – Does your new business really need that #1 Main St. address? Rent is typically a new businesses largest expense, especially if you are a online based or service based business look into shared office spaces such as coworxspace.com.
These are just a few of our favorite ways to cut costs. There are hundreds more ways to reduce your expenses and they vary from industry to industry but as a new entrepreneur you understand the value of a dollar and that a penny saved is a penny earned. If you have any questions or comments or would like to set up a free consultation to discuss your business and its needs feel free to call or email and we will be glad to help however we can!
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