New ideas for startups are conceived every day, but only a small percentage of them are actually pursued. Why? Well, for one, it requires funding and access to capital to get most ideas off the ground.
If you have an idea for a new startup then you know how important it is to have the funds to take action. Not everyone is going to get the attention and money from a VC, but that doesn’t mean you should give up on your idea. Sometimes self-funding is the best option and if that is something you are interested in then you need to take steps to help you save the most money possible. Here are some tips to help you save more money to put towards your startup.
- Live lean.
“Live lean and mean. Starting a business is hard. Getting funding for a new business idea is harder. Either learn to live frugally and save up funds so you can fund your own ideas — or get good at pitching investors.” — Shawn Schulze of HomeArea.com
- Start from home.
“If you are self-funding your company don’t fall in the trap of having a new fancy office with all the best office furniture and amenities. Work from home for as long as you can and save up for a rainy day, because you will have plenty of them as a new business owner.” — Ben Walker, Founder of Transcription Outsourcing, LLC
- Don’t underestimate your needs.
“Don’t underestimate what a new business will cost. Overestimate so that you have plenty of funds when (not if) something unexpected comes up. Running out of money at a crucial point early in the business can mean disaster.” — Matthew Kolb of All High Schools
- Create a budget.
“Create a strict budget, giving every dollar an assignment, and avoid impulse shopping. When paying, use cash or debit, and avoid credit cards. Save money by evaluating your budget vs. your spending for 2 months, and cut out “wants” like dining out, concerts, coffee, and other unnecessary expenses.“ — Sean Christman, Founder of Slamdot
- Sell old household items.
“Sell of old items that you no longer use in order to raise additional funds. You can often gather together a lot of old stuff that can be flipped on Facebook marketplace or eBay, which can give you more startup capital for your business that you don’t have to borrow and pay back.” — Tom Munroe, CEO of RugStudio
- Save and forget.
“Save and forget all else. If you believe in the business badly enough, then everything else short of feeding yourself should be put on hold until you accomplish saving enough to start. Sacrifice as much as possible.” — Marc Webb, Founder of Real PDL Help
- Be financially disciplined.
“Be disciplined. If you’re looking to fund an operation out of your own pocket, you need to be prepared to sacrifice in other areas in your life to get the ball rolling. That might mean not going on that vacation or purchasing a new toy you’ve had your eye on, or even getting a second job.” — Joseph W. Belluck of Belluck & Fox, LLP
- Host a party or event.
“Host a fund raising dinner or networking party. If your funding needs aren’t too outrageous, consider hosting an event with some of the revenue going towards the new business. There are several ways to do this and provide value to your guests. The key is to be creative.” — Ari Evans of AAA Handbags
- Make a list.
“Make a list of everything you think you need and want for your business. Then compare it against your mission statement and key message. See what you logically need to start building what you want and then make a plan on how to incorporate the rest as your grow.” — Shawn Freeman, Founder and CEO of TWT Group
- Cut back on luxuries.
“Sacrifice luxuries like vacations, dining out, and expensive cars until after your new business is launched and healthy. Not everyone is willing to do this, but those that are learn self-discipline and those early day struggles are what builds character.” — Andrew Tran, Founder of Therapy
- Eliminate expenses.
“Eliminate all unnecessary expenses and live as lean as possible during the startup phase. Downsize your apartment, cut entertainment and even consider selling your car and take an Uber everywhere. No car payment or insurance payment is money that can be used for your business instead.” — Christopher Dziak, CEO of Pure Nootropics
- Reduce the amount of eating out you do.
“Stop eating out. This might sound silly, but when you take a minute to think of all the money spent eating out, and what you could do with those funds in terms of business expenses, it makes it obvious why this is a simple and easy way to give yourself more business capital.” — Jim Epton of Dom Huga Ltd
- Know exactly how much money you truly need.
“Before you start saving money you need to know exactly what you need. Many startup founder account for more money than they need because they take expenses into consideration that they don’t need. Figure out a very lean operating budget that will allow you to launch for the lowest possible cost.” — April Gillmore, CEO of ClickFirst Marketing