Best Ways to Save Money as a Startup Founder
Table of contents
1. Go Green & Paperless
One of the best ways to save money as a startup founder is to eliminate unnecessary expenses. If can be very wasteful and expensive to spend your business cash is on items like ink and paper. Both of these things can be replaced with digital files and the use of modern technology.
2. Hire Freelancers
There will inevitably come times where you don’t have the time or expertise to handle. Although tradition might lead you to start thinking about hiring a new full-time employee or two, consider hiring freelancers. Freelancers are comfortable working short-term jobs at competitive rates. This can save you a lot of money on things such as taxes and employee benefits.
3. Spend Cash, Not Credit
Getting too involved with purchases on credit can quickly result in irresponsible spending. As you probably know, paying with credit can easily start to rack up interest charges. If you simply pay in cash, you can handle payments right as they occur. This way, it is a lot easier to stay on top of your financial responsibilities. Most importantly, paying with credit helps you keep the habit of only spending money that you have.
4. Get Sponsors
Thinking about hosting a big new meetup or some sort of event for your company? Although you might normally just start budgeting with your own expenses, you may have somebody in your circle who will be happy to sponsor your event. If you don’t ask for financial help, you will never get it.
5. Negotiate All Prices
Whether you are discussing payment for a contractor, long-term salary, or so on, make sure you negotiate for a good deal. If you simply accept the first offer given, you will usually be paying much more than you could be.
6. Buy in Bulk
A great way to save money in the long-term is by spending large sums of cash on business expenses as they come to get a special bulk rate. If you spend less money more often, you usually won’t have access to the same low per-unit rate as you can receive by purchasing in bulk.
7. Keep Another Job
If your startup isn’t quite getting the income that you were hoping for at this point, don’t quit your day job quite yet. Until you are pulling in a sustainable income from your startup, you need to look out for your well-being and keep your day job.
8. Minimize Living Expenses
One of the best ways to save money as a startup owner is to consider how you can cut back on living expenses. If necessary, move in back with your mom and dad, or at a friends house for a little while. Or, consider getting a more affordable apartment which will help you save some more extra money each month.
9. Live Without Luxuries
Do you like to eat out at fancy restaurants every Friday night? If so, start going out only once a month. Do you like to have ice cream after dinner each day? Start eating ice cream once a week instead. Consider what luxuries you like to indulge in the most, and cut back on them to save some extra cash.
10. Keep Business Expenses Strategic
Just as you should cut back on luxuries in your personal life to save money, the same rule applies in business. Figure out which business expenses are most important, and which ones aren’t as important. Cut back on the expenses you can live without as much as possible. Strategically decide what you need right now and what you can wait on.
11. Keep Emergency Funds in Savings
The nightmare of any startup owner is to end up broke and without any money. Understandably so, since founding a startup involves taking risks and investing money that you can’t guarantee a return on. Provide yourself with a safety net by keeping money in savings which you won’t touch unless in the event of an emergency.
12. Stay at Home on the Weekends
Everybody loves to go out and have a good time with friends and family. Clearly, this is also one area of your life which you can cut back on. If you have a group of friends that like to go out to the bars on the weekends, explain to them that you need to stay home for a while and save money. They will understand.
13. Do More By Yourself
As a startup owner, you will inevitably reach points where you start hiring people to do things for you. As a general rule of thumb, the more you can do by yourself, the more you can save at the end of the month. Instead of being lazy, start doing more jobs by yourself.
14. Create a Sustainable Budget
You should always aim to spend less than you earn each month. If you do this, you will stay on a sustainable path towards success. Minimize the financial risks that your startup takes during this process. Make a budget that you can stick to each month. Always make sure it balances out and that you earn some money.
15. Manage Expenses Responsibly
Business expense management can be a very daunting task. However, if you handle financial matters with a Penta Business Account, you can also access some of the best business expense management tools free of charge. This can end up being one of the absolute best ways to save money as a startup founder.
In addition to basic necessities such as corporate employee cards, Penta customers have access to an intuitive online platform for bookkeeping and managing expenses without dealing with stacks of paper or complicated spreadsheets.