Becoming an entrepreneur takes creativity, passion, time, and above all else, money. You have to spend money to make money, and financial struggles are a major hurdle that many entrepreneurs face when starting out. Knowing how to appropriately allocate your funds as a business owner will serve you well in any industry. While this knowledge cannot be learned overnight, here are a few simple tips to increasing your frugality as an entrepreneur.
Focus on what’s important
While it may seem pivotal in attracting employees to have a gentrified office building with exposed brick and a ping pong table, these things may not be the smartest investment for a first-time entrepreneur. Invest in aspects that will pay out dividends in the long run, rather than focusing on features that are unrelated to your business. The fun stuff can wait for when your business really takes off.
Try to up-cycle
Adding on to the previously mentioned facet, try to cut expenses when it comes to equipment and supplies. You and your employees may not need the newest version of Apple’s Macbook to do your job efficiently. Purchasing computers, printers, fax machines and more at a second-hand shop will save you money in the long run. Office supplies can be purchased in bulk as well.
Try off-brand software
Subscriptions to certain software can get pricey. Adobe Photoshop can cost upwards of $500 per year. However, there are plenty of free software and websites that carry the same capabilities as these name brands. Talk to other small businesses and see what they recommend to get the same job done at a fraction of the price.
Piggybacking off the above tip, grow your network. Bring on partners from various backgrounds and industries. Not only will they buy into a portion of the business which helps grow your funding, but they also offer in-house expertise. Networking will also go a long way. Attend events that other local businesses and startups will be at. Growing your network of professionals is a great way to market your business and build your contacts.
Don’t shortcut SEO
Search engine optimization (SEO for short) is the best way to build an authentic online presence and grow awareness for your business – but it takes time. Rather than spending hundreds or even thousands of dollars on paid advertisements and social media followers, try producing real content. Optimizing your online presence builds a sense of trust among potential consumers and will benefit your brand in the long run.