by Thom W. Conroy

Created on: April 28, 2009

Along with the ambition and desire to start a business comes the eventual realization that it could easily fail, regardless of good intentions and work ethic. A little bit later in an individual's thought processes it becomes apparent that in order to enhance the odds of success, corners must be cut financially and pennies must be counted and coveted. While this epiphany may not be copacetic with the personality of a particular entrepreneur, it does apply universally to all businesses in the startup phase. Saving money running a startup is an important element of determining whether a small business can survive the initial year, especially in this poor economic climate. While running a startup on a tight budget does not guarantee success, it certainly does tilt the odds in favor of longevity.

Saving money running a startup begins with the planning stage, as exceptional planning can save more money for a startup than just about anything else. Hypothetically consider good ideas as currency, this good thought is worth $50, that good thought is worth $12 and so on. Every opportunity to save in any aspect of a startup is money in the bank, and hours spent quietly contemplating cost-cutting measures are certain to result in more than a few creative and excellent ideas. Don't be afraid of unconventional thoughts or business practices as applied to a startup, you just might get lucky and come up with a real gem.

An excellent way to save money running a startup is to utilize personal possessions you have accumulated over a lifetime to help keep startup costs at a minimum. Instead of renting a small office for $1,200 a month, convert a room in your home to a functional office space. You'll not only save the rent, but there is a tax deduction in it come April 15. Instead of buying items like small tools, lamps and vacuums, scrounge around your home and I'd bet you'd be amazed at things that are collecting dust that can be used for saving money running a startup. Rather than spending a ton of money on advertising do some legwork - knock on doors, introduce yourself, shake hands, and pass out fliers. It is one of the great lessons of running a startup to understand that there are many people who root for the little guy, and will gladly send some business your way if they have met you personally.

Finally, you can save money running a startup by using every resource at your disposal to reduce overhead costs. This includes bartering and trading favors with anyone who can save you money, regardless of how little the amount may seem it is what will eventually be your profit.

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