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Jan 08, 2018 at 07:00 AM

Small Business Finance - Smart Strategies to Stretch Your Startup Dollars

By Alexandra Trujillo
Small Business Finance - Smart Strategies to Stretch Your Startup Dollars

While getting your small business started can be exciting, it can be easy to get carried away with expenses. It is important to have a strategy to make sure your spending is within budget. Simple things like being flexible with your business plan can go a long way in making sure your start-up dollar is being maximized. This article outlines a few helpful tips on stretching your start-up dollars.

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Initial startup costs are some of the biggest expenses a new business owner will have to encounter. Before you turn a profit, there are many parts of the business that need to be covered up front, and entrepreneurs don't always anticipate some of these expenses.

To reduce your startup costs and stretch your dollars a little farther, follow these tips.

Have a budget, and stick to it

A simple way to save money as a new business owner is to set spending and expense limits. However, a surprising number of business owners don't have a formal budget, said Carissa Reiniger, founder of small business support community Thank You Small Business.

"There is so much power in knowing what is going on in your business, for better or for worse," Reiniger told Business News Daily. "Managing the finances of my business is not something I naturally enjoy, so I've put rules in place to help me stay on track. I advise setting up a standard time every week or month for reviewing and managing your budget."

Angie Segal, an ActionCOACH business coach, advised entrepreneurs to factor their own salary into the budget as soon as possible. [See Related Story: 6 Smart Budgeting Tips for Small Business Owners]

"When you don't pay yourself, you take money out of the business elsewhere to cover your own expenses," Segal said. "Giving yourself a salary forces you to make everything in your budget work."

Thatcher Spring, CEO of GearLaunch, said entrepreneurs should always do as much as possible with what they have before they add more fixed costs.

"At my company, we only hire when there is too much for the current staff to reasonably accomplish without additional help," he said. "I've also found that hiring less-experienced, smart, adaptable employees, instead of only those that are senior and highly experienced, can help keep salaries under control."

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Posted in Small Business Financing.







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