Updated: Jun 4, 2020
1. Stick as far as possible to your business plan until you have identified in your monthly or quarterly assessment that you need to shift your spending from one area to another.
2. Negotiate your terms with vendors early. Try and get the best deal. Do your research though to make sure you are getting the best bang for your buck. If you can consolidate then do so. It may be cheaper to use one vendor to provide 2 – 3 services instead of 2 – 3 vendors providing the same things separately
3. Try not to lock yourself into long term binding contracts unless you think that it is too good to pass up but I have a rule if it sounds too good to be true it probably is.
4. Try to keep costs down as much as possible. For example if you’re a service provider why not use your home office or your home as an office to cut down on overheads. Do not get brick and mortar in the initial stages if you do not need to. You can meet a client at Dunkin Donuts or Starbucks. There are also some spaces being made available in some cities where you can rent a space for a period of time to do whatever you want such as meeting clients.
5. Stick to your budget when buying the resources you need and do not over spend. I can speak for myself. I love stationary especially beautiful stationary. Every time I go into the stationary store I want to pick up something. There was a time in I would just buy stationary for the sake of doing so but then I looked around and thought, just how many journals, sticky pads and pens do I need. Just remember the cost all add up
6. You don’t need new furnishings. The old desk is fine unless of course it is falling apart. Purchase second hand furniture in the beginning. There are always people who want to get rid of office furniture. Go to a second hand store or even ask family and friends. Someone may have a desk or chair they want to get rid of to make space in their home or office but do not want to throw it away because it is in good condition
7. File your taxes on time so you don’t get charged. In some states such as Massachusetts you are required to pay a state tax in addition to federal tax. The state tax is mandatory irrespective of wether or not you made a profit that year.
8. Pay attention to your bank account so it does not go into overdraft and you get charged a fee. Pay your other bills on time if possible to avoid unnecessary charges.