Simply Junior

The essence of the 5K business (a business you start for $5,000 or less) lies in the fact that you can have low overhead expenses and make more money than your competition. But the 5K biz model also has requirements that need money and time. Often new business owners make the mistake of spending too much and deplete their resources.

Renting office space and buying new, state-of-the-art equipment are the top on my list of can-do-withouts. The success of a new 5K biz depends on your ability to keep your profits high and that is possible only if you equip yourself with some smart money-saving tips.

The best money saving tip I can give you is to work with online businesses as much as possible. With cut throat competition on the web, it isn’t difficult to find Internet businesses that excel in their field and offer you the most innovative products at prices the brick and mortar counterparts can’t match.

Here are 11 ways to reduce your expenses and keep more of the money you earn through your 5K biz. Let’s take a look:

1. Office space: A lot of new business owners feel having a well furnished office will give them a professional look. But most 5K businesses don’t really need an office to meet with their clients and can work out of a spare room. In a case like that, is it wise to spend hundreds of dollars every month on renting office space? However, if you still feel you need an office occasionally, try this new concept of renting office space for short periods. Look up ‘office rentals’ in your city’s Yellow Pages and you are sure to find one like [http://www.intellilgentoffice.com] or http://www.officeconcepts.com . By being a member of these groups, you can rent office space from them for as little as $11 an hour, have an official mailing address, a receptionist, and eliminate a big monthly bill.

2. Office supplies and equipment: Supplies like stationary and brochures can be very expensive but not if you know how to keep the costs low. I advise 5K biz owners to not print color stationary because it is an expenditure that doesn’t add value to your services. Try using black & white stationary that can be designed and printed on your own computer system. The same is true for printing brochures. Print if you must but keep the number low because brochures and other marketing collaterals are bound to become obsolete quickly as you grow in the business and add or delete services. Buy refurbished or second hand equipment from online auction sites like http://www.ebay.com to save money on computers, printers and other consumables.

3. Car expenses: This is one expense you can do little to minimize. However, there are a few things you can do to cut down your car expenses. For one shop around for economical car insurance to reduce your total bill. Another money saver is to try and resist the charm of the latest model because it doesn’t really add to your image but increases your expenditure. Thankfully, you can use your existing car for business purposes and deduct most of the expenses. To keep a check on your auto expenses, it is a good idea to put all business charges on a separate credit card.

4. Bank charges. There are no free business checking accounts at any bank. But you could look for a bank that offers reasonable charges and is close home so that you don’t add to your auto expenses by driving across town. You can try online banking but take care to check out the quality of their services and transaction speed. You may find that using the local bank is the best deal for maximizing your time and convenience.

5. Communications: An important factor of any business and especially a 5K business is easy and quick communication. Your clients should be able to reach you easily. Thankfully, there are several options available to keep your communication costs low. Growing competition has made phone services more affordable and easy to use. Use a service that offers add – ons like voice mail, caller ID, call waiting and forwarding. Having a fax and an email account are must haves for a 5K business and are also great money savers. Try [http://www.efax.xom] for a cheap way to get faxes without paying for a separate phone line.

6. Logo: Here is a great opportunity to use online graphic artists and get a great deal. There is a growing community of freelance designers on the Internet and getting a professional logo designed is a matter of a few days and as little as $50! Check out http://www.elance.com and http://www.guru.com.

7. Business cards: Business cards are a must for they not only give your company a professional image but are also a great advertising opportunity. I use http://www.vistaprint.com and http://www.iprint.com to print my business cards and save some money. Again a word of caution: don’t print 1000’s of cards at first. Start with 250 or so. Wait for your company to mature and see what services you want continue to offer. As you grow and learn, you will find that your business model will change.

These are big costs to be saved and if you can find an alternative to the elements of a traditional business model, you give your 5K biz a jump start on competition. With online businesses booming, see if you can find a deal and save that startup money.