I feel like I’m always apologizing for my absence these days, but at least now I have a happy excuse. I’m starting a business. Lately, I’d been getting burned out on cutting expenses, mainly because we couldn’t cut anymore. There comes a point where the budget can’t trim anymore without starvation or mental saturation. Sometimes, you have to focus on increasing income.
It’s actually quite difficult to start a business on a budget. There are some expenses that there is just no getting around or reducing. While I would like to, I don’t think our state business office feels very negotiable when it comes to license fees. There are several places where I am able to cut costs though:
1. Business/Professional Liability Insurance – This isn’t necessary for everyone, but I have a lot of contact with the general public and it’s very important for me. I shopped around through several carriers and was able to determine that a lot of them had “services” (and I use the term loosely) that weren’t for me. I’m busy enough that I don’t consider a local chapter with mandatory meetings a bonus, but I do like professional discounts for cell phone plans and health/life insurance. In reality, saving $10 a month on my cell phone plan will almost cover my policy cost. I did find that it was very difficult to “compare apples to apples” when it came to coverage. Many prided themselves on some sort of special amenity so I had to do a value cost analysis, i.e. How much value am I getting for the money I’m putting out? Is what I’m getting worth it to me? Does it meet my requirements?
2. Location – When it comes to starting a small business there are a surprising amount of options for location. You can (sometimes) use your home. You can share a space with another business person. In my case I have to consider accessibility to clientele, myself, parking, and more. I think I’m going to be locating myself in an artist’s community space. It should work well for me and offer many networking opportunities.
3. Furnishings – Everything else can be bought the same way I buy anything else, on craigslist and ebay at a fraction of the cost.
4. Marketing – A lot of marketing doesn’t actually have to cost you anything other than a phone, paper, and printer ink. I have referral cards set up that incentivize my clients passing on my information. I participate in appropriate networking events. And NEVER be afraid to introduce yourself.
I have to say I’m both trepidatious and excited for what’s in the works. As soon as I secure my space I’m trading services for help with painting and flooring. Now if I can just find someone who will trade my expertise for cleaning my house, my life will be complete!
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Congratulations! Will you let us know what line of work you're in? (Or would you then have to kill us?)
I'm not really anonymous, but decided that since my blog wouldn't add to my business, and my honesty may in fact be off-putting to some clients, I'm not posting all the details. But I will e-mail you (and promise not to kill you).
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