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Money Management

7 Money Saving Tips for Entrepreneurs

7 Money Saving Tips for Entrepreneurs
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You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Starting a company is one of the most stressful, yet rewarding periods of an individual’s life. You have to worry about payroll, group health insurance, marketing your business, and even employees leaving during crucial periods.

All of this can be extremely devastating but it is important to have a solid foundation and understanding of the areas that you have control over as an entrepreneur.Money is one among the keys to establishing a business that has a strong foundation and a wise investment can be vastly productive.

Here are 7 Money Saving Tips for Entrepreneurs:

Use Organic Search Instead of Paid Acquisition

Most entrepreneurs feel that investing millions of dollars into paid advertising, such as Google, Facebook, LinkedIn, etc. ads are some of the best ways to grow your business but what tends to happen with new companies is they start a company and spend money on paid acquisition. This means that their base of growth becomes unstable.

Instead, it’s better to invest in advanced SEO techniques such as content marketing, link building, and optimizing for on page as well as off page SEO. You will see your traffic grow and then can use paid ads to grow the fire even more.

Cut the Fat

If you live in an expensive city, such as New York, it becomes very difficult to focus on building your business along with managing payroll and high rent costs.

I suggest first-time entrepreneurs to spend wisely when it comes to office space and focus more on building a bigger business that will pay dividends in the long run.

Spend Money Where it Matters

Have you ever seen entrepreneurs that are too cheap when it comes to their expenses? What I have seen over and over again are entrepreneurs that skimp on services such as lawyers, and accountants. These services become increasingly important when the crisis comes about such as a lawsuit or contractual agreements with clients.

My suggestion is to take sufficient recommendations from entrepreneurs who can tell you who are good lawyers and not so good lawyers.

Use Free Software

If you are running an agency you could spend hundreds of thousands of dollars on software like Photoshop. Especially if you are just starting out, a smarter way to go about this is to use websites like download.com. You can use this website to try thousands of products for free. If you can’t find what you need, go directly to the product website and you can find specifically what you are looking for there, and you can usually try it for free as well.

Don’t go at it Alone

There is a famous proverb that says if you want to go fast go alone if you want to go far go together. This proverb is also applicable when it comes to saving money as an entrepreneur. Simply said, it’s much easier to save money if you have a co-founder who can do the opposite of what you can do.

For example, if you are a marketer, finding someone who is a developer will save you money on development costs in the long run instead finding someone who is exactly like you.

Improve Workplace Safety

From employees’ viewpoint, it’s essential for them to feel safe and secure at the workplace, in terms of their health. Whether or not it is a startup, employees need to have the assurance of the safety of their health. The employer has to provide its personnel with health cover, typically under a group plan.

While some employees may have individual health plans too, offering them group health coverage makes the even safer.Thus, it’s prudent to compare multiple health insurance plans online, as this helps to find out one that complements the budget in the long term.

Avoid Extra Expenses

Instead of brand new printers, Xerox machines etc., you can opt for recycled editions of such devices. You can easily get these devices when available for sale online or offline, typically when one or more multinational companies move from one location to another. These devices are often needed at the organizational level, so you must explore and purchase them when available at an affordable price.

Saving money as an entrepreneur can be a daunting task especially as costs increase day by day as you expand. But it doesn’t have to be like that and now you can finally find a solution to the madness by simply taking a step back and evaluating what costs are worth experiencing and what are areas in which you can save money on.

Edition: December 2016

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