You’re a young entrepreneur. You’re bright, confident, brilliant, and full of ideas. However, there is one downside: entrepreneurship costs money, and abundant wealth is not among your many virtues....
Luckily, you don’t have to worry about that—many a little makes a mickle, and you can build something incredible with minimal investment. Look at these five tips to save money and give your business the best chance to thrive.
1. Balance Debt Repayment and Business Investment
There is a big chance that, as a young entrepreneur, you also happen to be a college student or a recent graduate. If so, you’re already starting your business with a pretty big setback: student debt.
Striking a balance between repaying your student debt and investing in your business is crucial.
Side hustles can be an effective way for young entrepreneurs to lower student debt while pursuing their business endeavors. A side hustle can serve as a bridge, allowing you to sustain yourself financially as your business gains traction.
For example, selling used books on BookScouter.com (both your own and those you can obtain for reselling) is a great side hustle for students and young entrepreneurs. For those who have doubts about whether used books have resale value, see the website itself, and check out the article on how to determine books that are worth money.
2. Plan and Budget
After handling student debt, a young entrepreneur’s next most important priority is a business plan and a budget-oriented mind.
With a business plan, you can outline your project needs—opportunity, market, organization, strategy, and other things you should account for. Establishing that will give you a clear glimpse of what you need and the costs involved, which leads to budgeting.
A business budget will help you visualize your revenue, expenses, profit, and losses. As such, it can help you separate the essential from the disposable and, in turn, give you a better glimpse of what you can do to grow your projects in the short term
3. Use Free Resources
You can invest money in high-quality paid resources once you get there. For now, as a young entrepreneur, the best way to save extra money without sacrificing efficiency is to use the free tools and resources you can find on the internet.
Whatever you need, you’re sure to find a free option online. Google Workspace provides excellent tools to ensure productivity and collaboration without additional costs, while an open-source office productivity software such as LibreOffice can offer programs for regular business activities like word processing, spreadsheets edition, and more.
Even for more specific tasks, such as accounting, you can find open-source software or free trials worth checking out.
4. Outsource Whenever Possible
Hiring employees has plenty of benefits, and it is a long-term investment worth considering—for the future. As a young entrepreneur seeking to save as much money as possible, you should consider outsourcing instead.
Full-time employment is more expensive since it involves payments beyond the basic salary. However, contracting workers on a project basis allows you to build up your business only as required and keep your expenses low.
However, remember that this is a short-term solution to reduce costs as you build your business. You should consider shifting to hiring employees as soon as financially available since outsourcing tasks regularly can become quite expensive in the long run.
5. Make Revenue Your Priority
As a young entrepreneur, your ideas are big, and your ambitions for your project are boundless. However, slow and steady wins the race.
While it may be tempting to go overboard and start renting big spaces, invest in expensive equipment, or hire diverse staff, doing so may be costly. Avoid unnecessary expenses from the get-go and, using your business plan, focus exclusively on the essential elements to generate revenue.
Remember: the priority is to get your business started while saving as much money as possible. By starting with the bare basics, you will eventually generate enough revenue to invest in growth and progress.
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