5 Ways to Save Costs when Starting a Business

Taking the leap to self-employment can be scary. Will you make enough money? How will you insure yourself? What will you do during the slow period? While choosing to start your own business can be scary, for many it leads to a higher quality of life and a more flexible schedule. Plus, when people do the work they love, they tend not to mind working harder.

If you have just started your business, take steps to reduce your expenses so you have more profit. This is especially important when your business is just getting off the ground and you are building a client base:

1. Curb your utility bills. Make sure to comparison shop and check your rates. One option is to switch to cheaper business gas and electricity at makeitcheaper.com for instance, or another company that offers the best rates.

2. Bundle your services. You will likely receive discounts if you bundle your services such as phone and Internet together, rather than going with different companies for each.

3. Reduce marketing costs. Marketing is essential to a new business, but it can be expensive. However, it doesn’t have to be. If you are looking to have brochures developed, see if you can find a freelancer who is just starting out and looking for experience to develop your materials. Chances are you will get a good deal, and in return, you can offer the person a recommendation so she can grow her business.

4. Work from home first. If you have the flexibility to work from home, you may want to do that before you rent your own office. This will allow you to conserve costs and build up your assets before moving to a rental property.

5. Hire a good tax professional. One area you may not want to skimp on is your taxes. A CBS News reporter compared her tax returns if done by a professional or by herself with a tax program, and she found that the professional was well worth the extra expense.

Starting your own business can be exciting and can lead to financial solvency and increased joy in your work life. Just make sure to curb the business expenses that you can so your bottom line grows.