Saving Money When Starting A New Business

debtWhether you are franchising a chain or starting your own new business right from scratch, there are certain things you need to have, and things you need to be prepared for, in order to have a successful business venture.

Your first step, if this is your own personal business and not a franchise, is to decide if you will be working from home or if you will be getting an office or storefront. Working out of your home only works for some business types, but it can save you a lot of money.

For this article, the focus is going to be on renting or buying a work space for your new business and what you should make sure you have and what you may need to live without.

Picking The Right Place

You have a couple decisions to make first- rent or purchase? If this is a brand new business you may want to start out with renting so that you have an easy way out of the building if your business fails.

No one wants to think about their new business going under, but you need to keep that in consideration if you have any hope of succeeding. Renting also allows you to test out space before committing to it.

You want to have a budgeted idea of how much income you’ll bring in the first year as compared to how much you’ll be putting out for rent and utilities also. Not preparing for all the small expenses could be what puts your business under.

Don’t Skimp On Insurance

You have to insure your building, whether you are renting or purchasing. If you have commercial property insurance that is uninsured and theft or a fire happens, you will not just lose your inventory, you will also owe a great deal of money for damages to neighboring buildings, and to your landlord if you’re a renter.

Just like home owners insurance and car insurance, having your business building insured is just a smart thing to do that helps keep your business on the up and up.

You Can Skimp On Equipment

One place you can save money is on your office furnishings. Shop for used office furniture, like chairs and desks. Purchase things like stationary and file photos at the dollar store.

If you have a small office and you want to make it look bigger, paint your walls a light color, like white or off-white, to make the room look bigger. If you have a waiting room, get magazine holders that hang on the wall to help leave more floor space.

There are many things you can do with your own commercial space that you can’t do with a rental. Before painting any walls or making any major changes in a rental commercial building be sure to OK it with your landlord.

While renting may save you money if your business goes under, purchasing your own building can save you rent money. It really just depends on how much confidence you have in your business!

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