7 Money saving ideas for startups with a shoestring budget

Written on November 7, 2008 by Imran Mirza

It is no myth that capital is scarce. It is more so for small businesses and startups, where every penny matters. It can be quite difficult in the beginning when you are just starting off and have very limited resources. While some expenses and costs are totally unavoidable, a budding entrepreneur can really cut down costs with some street smart ideas.

Here are a few things that you can do:

1) Always avoid purchasing an office. Renting is the smartest option.  Even if you have a lot of capital and can easily afford to buy a place, don’t. Save it up.

2) Look for furniture that can be moved. It can be set up within a day or two. It would also spare you from dealing with the lousy furniture guys. Try portable desks. They are cheap and very functional. 

3) Avoid hiring an agency for staff recruitment. Use the internet to post your vacancies on free job sites. It might not be the best way, but it’s free and works!

4) You might need air conditioning in your office unless you live in a very cold area. Hire an air conditioner instead of purchasing one. You can pay a small monthly rent and get free maintenance too. This way, you avoid spending thousands on a new unit. Remember, the idea is to save up and keep your capital expenses to the bare minimum.

5) If your office depends a lot on IT then it would make sense to learn the basics of networking and general trouble shooting. Trust me, you would need it. You can save a lot of money by fixing things yourself! Hire a network engineer when you have enough resources.

6) Try open source software for your computers. Its free and quite reliable! This way, you no longer have to spend on costly software licenses.

7) Get a fixed phone connection only if you absolutely need one. Almost everyone has a mobile phone these days, making the need for a fixed phone redundant.

With a little bit of diligence, you can cut down your costs to a great extent and save a lot of money.

Posted in The Entrepreneur