Starting a business can be EXPENSIVE, as people find when they become entrepreneurs after losing their jobs. But many of these brand-new company owners have also found ways to keep those costs down.
Keeping startup costs down is ESSENTIAL when a business is young and money isn't yet flowing in. Here's a look at ways that new entreprenuers can keep their startup costs down:
WORK AT HOME: There can be a financial plus in working out of your home besides keeping costs down. The federal tax code allows people with home-based businesses to deduct some of their expenses such as rent or mortgage interest, utilities and repairs. But you may have to spend more on insurance.
If a fire damaged your business equipment, or a business associate was injured at your home, your homeowners policy might NOT cover it.
USE INDEPENDENT CONTRACTORS: With independent contractors, a small business doesn't have to pay for BENEFITS AND EMPLOYMENT TAXES.
Owners who are considering using independent contractors need to be aware that they have to comply with laws that define who is an employee and who is an independent contractor.
The laws have to do with the amount of control an owner can exert over a worker, such as hours and place of work. The IRS has information about the differences between employees and independent contractors on it's Web site at www.irs.gov/businesses/small.
LET TECH DO YOUR WORK: Online shipping and mailing services are especially helpful for companies doing bulk mailings. And there are plenty of online ways to save money on marketing.
Putting a page on Facebook for your business or getting a Twitter account will help you market your company, product or service or all of the above.
If you're not sure how technology can save you money, talk to a counselor from SCORE, which offers FREE advice to small businesses. You can talk to a counselor in person, on the phone or communicate with one online. The organization's Web site is www.score.org.
SOCIAL MEDIA: BROAD REACH FOR LITTLE OR NO COST
Social media, otherwise known as Web 2.0, has given businesses the opportunity to share knowledge like never before. It gives you the power to influence the opinions and actions of customrs while giving your customers virtually unlimited access to the information you share!
Best of all, unlike traditional outbound marketing, in which you have to buy space in print media or airtime on broadcast media, the social Web has created an almost endless array of distribution channels to directly reach and influence consumers -- many of which are free.
So, what are some of the ways your small business can participate in this increasingly social world of consumer-business mass collaboration?
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Utilize Social Networking sites such as Linkedin, Facebook, Twitter, etc., to connect with your peers, customers, and influencers (people who submit high-quality content to social media sites regularly and who have a strong following of friends, fans, and supporters as a result).
- Create a Fan Page for your company on Facebook so that prospective and current customers can stay updated about your business and you can gain instant feedback from your customers about your products or services.
- Create a blog. Blogs are an extremely effective way to interact with your customers and strengthen company-client relationships.
- Write and publish articles and online press releases. Google "submit article" to find suitable article directories that publish original articles to help build backlinks and traffic to your website.
- Participate in social news sites like Digg, Reddit, Mixx and/or niche social news sites that cater to a narrower topic or industry-focused audience.
- Take advantage of video search to build your BRAND.
Video search on YouTube now accounts for 25% of
all Google search queries in the U.S.
The bottom line is that every business should have a social media strategy designed around the needs and interests of its customers.
COUNTY LAUNCHES LOAN PROGRAM FOR SMALL BUSINESS
Bernalillo county's Economic Development Department has launched a new business incentive that will allow small businesses to get loans from $5,000 to$50,000.
"We've worked over a year to come up with this innovative program that follows a business for four years," siad Daniel Gutierrez, Economic Development Director for the county.
Small business owners like Tracy Kitt said the micro loan program is a big help. "Most likely I would have probably had to lay someone off," said Kitt. "And that's not what we wanted to do at all.
The system not only tracks, but develops a strong business model for businesses before and after a loan is disbursed. Each company will get a business advisor who is in constan communication.
"It's nice to know we're building a relationship and a business partnership for years tome," said Kitt. County administrators said it's not just about lending money out, but growing businesses.
"It's a holistic approach that allows them to grow and maybe we can have 500 businesses grow, one person at a time," said Gutierrez.
The county said its goal is to make sure businesses are successful, and it hopes the tracking system will help it reach that goal. The money to support the loans comes from Bernalillo County and three privat partners to total $1 million. The loans are part of a program called "Increment Of One" that was lauched a year ago to create more than 550 jobs over two years. |
