You are a scrappy business owner who’s always looking for ways to scale your business without breaking the bank. But you are not a starving artist who is going to live off Ramen Noodles and work in the dark to save a couple extra bucks!
You need sensible, money-saving suggestions and tips to help you decrease some of your more expensive business costs. These smart low-cost business ideas have a high profit and can save you thousands. You’ll still be able to scale your business on a smart budget without compromising the important things.
Think Outside the Four Walls
A dedicated office space may help keep you organized and give you a quiet space to take your meetings, but it can be costly. TheSquareFoot in 2015 reported that the average monthly rent for a square foot of office space was $1.74 in Atlanta, $1.92 in Dallas, $5.43 in San Francisco and $6.16 in New York City. The average yearly cost to rent office space per employee was $14,800 in New York, $13,032 in San Francisco and $10,522 in Washington, D.C.
That is quite the chunk of change to shell out for a space to sit, work and make the occasional phone call. As a small business owner, the money you’re putting toward that private office space might be better spent building up your company.
There are plenty of alternatives if you decide to opt out of paying for private office space. For one, popular coworking spaces are popping up in nearly every major city. Places like WeWork, IndieDesk, and TechSpace are funky and functional coworking spaces where you can receive all of the conveniences of a private office with fun amenities and for a fraction of the cost. On average, a coworking monthly membership can cost as little as $200.
If you want to drop your workspaces costs even further, then ditch the office completely. With the right technology tools, you have the ability to work out of coffee shops, mountain tops or even on your couch. Create the office space that works best for you and your budget.
When you grow your business a little too fast and a little too much, you might feel overwhelmed and drowned in work. If you don’t have enough in your budget to hire and pay the salary of a full-time internal employee, hiring freelancers is a low-cost approach to should consider.
Using freelancers, you can get help with the work you need done at a fraction of what you would pay a salaried employee. You can hire a freelancer to manage day-to-day administrative tasks, assist with account management, focus on your social media or complete almost any ad hoc project for a short period of time.
When you have freelancers working on these tasks, you can continue to scale your business and focus on other essential entrepreneurial tasks. Finding freelancers is easy and inexpensive using third-party matching websites like UpWork or CloudPeeps. Simply post what you need and the rate you’re willing to pay, sift through the proposals and hire a talented freelancer to help.
Change Your Business Entity Type
If you find your business is continuing to grow, it may be time to adjust your business entity type. If you started off as a limited liability company, it may be time to jump up to an S Corporation. Do some additional research that compares the two to find what may be best.
An S Corporation (or S Corp) offers significant tax advantages while preserving your ownership flexibility and saving you self-employment taxes. If you find yourself owing the government thousands of dollars in taxes every year, then it’s probably time to consider the cost-saving benefits of forming an S Corp. Use this S Corp calculator to get a better idea of how much you can actually save.
If your business is already an S Corp, then you may want to consider whether a C Corp can save you even more. Again, it’s smart to compare the two structures and see which one is the best fit for your business.
Forming the best entity type doesn’t have to be costly either. With Incfile, you can form your business for as little as $49 plus state fees. That is definitely a low-cost solution that can end up saving you thousands in the long run.
What are some other smart low-cost business ideas that have helped you shave down your overhead expenses? Share with us in the comment section below!
No matter where you are at in your stage of business, Incfile is here to help. Whether you are looking for resource tools, help filing business taxes or finding LLC state information, we are a one-stop shop for entrepreneurs.
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