Article Contributed by Samantha Peters
While cash obviously helps a business pay for a lot of resources, it isn’t the only thing that can help fuel a startup. Below are ten alternative ideas for how a business can grow, expand, do work better, or protect what it already has:
1. Go to the Cloud – cloud services, software and related systems are now providing tools, storage and collaborative environments that once were just the domain of large companies with enterprise network systems. Now, for just a small subscription fee per user, a business can enjoy the same tools at far less cost and no internal IT support.
2. Bartering – Believe it or not, one of the oldest ways of doing business is to trade goods and services with other businesses. This is a localized, easy way of obtaining needed resources by simply trading what one is already selling. Businesses can get equipment, professional help, and even technical assistance by bartering regularly with other local companies.
3. Take Advantage of Tax Deductions and Credits – Taxes are all-too-often ignored and left to a hired accountant to worry about. However, smart startups take advantage of every deduction and tax credit available to both reduce tax liabilities as well as bring in some extra cash in a tax refund at the end of the year.
4. Seeking Government Help – both state and the federal government offer multiple small business loans to help startups financially expand and grow if they met certain requirements. With a business plan, a good strategy and some experience already, a startup could secure needed financing at very favorable rates.
5. Diversify, Diversify, Diversify – Small businesses frequently suffer starting out because they make their service or produce too unique. To catch the most customers for recurring revenue early on, startups need to diversify what they offer so that one product or service brings in sales when another side is not doing so well.
6. Run the Business From Home – One of the biggest expenses for a business is office space and property. If a business can be run from home, which already paid for by a day job or similar, or it can be run as a virtual entity, a significant amount of cost can be avoided. Converting a spare room into a simple home office can do the trick as well as score a valuable tax deduction. Just make sure the room isn’t used for anything else.
7. Buy Used Equipment – A startup doesn’t need to lose valuable funds buying the newest equipment available. Desks, chairs, cabinets and shelves all exist in used form at office surplus depots as well as government surplus. Many of the furniture items are in great condition with plenty of years of life left, and they can be bought at one-fourth the cost.
8. Participate in Charity – non-profit charity work provides a great meeting point with lots of other business leaders and potential customers, especially at fund-raisers. Providing help for such events puts a small business in direct contact with potential networking opportunities while helping out a good cause.
9. Donate Unused Equipment – Towards the end of the calendar year a startup should always inventory physical assets and donate whatever isn’t needed to a recognized charity. This can then be used as a tax deduction to generate a larger tax refund at tax time. That in turn adds to cash flow.
10. Staying Healthy – while many startups can’t afford a luxury health plan, they can usually afford to provide a gym membership to all their people. Just 20 or 30 minutes of workout a day has a tremendous effect on health, energy and ability to fend of sickness. Additionally, providing good furniture and making sure people sitbetter at work avoids costly issues as well.
Finding sources of support and “fuel” for a startup takes as much creativity as what is needed to make the new business happen in the first place. It’s part survival, part optimism and a whole lot of taking advantage of opportunities where they exist. Combining everything available, a startup can leverage quite a bit of financial help in the aggregate.
About the Author
This Guest Post is written by Samantha Peters, an active blogger who enjoys writing about anything of interest to entrepreneurs and business start-ups.