Cost Savings Tips for Startups

One of my favorite things is saving money. Boy, do I love a good deal. Here are a few tips on frugality on starting a company and running it leanly.

You may not feel comfortable doing this, but get used to it, it will save you a lot of money. Ask for discounts. EVERYWHERE. You will be surprised just how often prices are negotiable.

When incorporating, tell your lawyer that you are a new company and ask him what is the least expensive way to get the work done you need. Say, do you provide discounts to brand new companies and then say it would really help. If they say no, how about 100 dollars off and then smile. It works.

You can save money on office furniture two ways. First, use card tables for desks. Don't purchase cubicles. They are too expensive. Go to home depot and by some insulation board and then separate the card tables. Card tables can be purchased at garage sales or even ebay for under $20 each. It's another $20 for the insulation board. Next you will need decent chairs. If you will be sitting all day in the chair, I suggest purchasing a good chair. As a consumer, you need to understand the return policies where you shop. I believe the best return policy is Costcos. It's unbelievable. I am a devoted customer, because I know that if I keep the reciept I can return any item up to 12 months after I've purchased it. So if money is really tight, purchase your chair at Costco. You can always return it and get your money back for 12 months. If your venture doesn't work out, return the chair.

Like chairs, computers can be purchased the same way from Costco. When you are a new company, you don't have a huge IT department that can clean viruses, fix computers, or upgrade you at any time. In this case, by your computers from Costco. If it breaks, you can return it up to 6 months after the date of purchase. You need to keep all of the packaging. In theory, you could purchase a computer and get a new one every six months under the Costco return policy or what I affectionately call the Costco Technology refresh program, but I don't encourage that.

Next is office space. I have four hundred square feet of office space that includes utilities, shared spaces, and internet access. I have to pay rent and my phone bill. The total cost of the office is $300 per month and it's in a brand new building where most tenants pay $1.80 per foot. How did I get it so cheap? Well, my space is a little funkier. I rent a bicycle storage closet. I know, I know. It's a little odd, but it's quiet, provides all I need and is a great deal. Storage space is usually a lot cheaper and most nice office buildings have it. Ask and see if you can rent some.

Do without everything you can. If you can't go without it, ask for the best price, get multiple quotes and have vendors bid for your business, and continually be on the lookout for better and cheaper. Remember, it's easier to save money than to make it.