No matter what type of business venture it is, home based and small business owners have to spend money to start a business. The initial startup can be as inexpensive as a few dollars to as expensive as several thousand dollars. Many home based and small business owners lay out the initial investment and then are surprised at the ancillary out of pocket expenses they incur as a result of starting the business.
Costs such as gas mileage, computer equipment, Post Office Box, copy machine, office supplies, stocking inventory and maybe even childcare are all a part of the cost to do business. A little strategic planning along with a business plan can help new business owners to plan and predict many of the new startup expenses, however, there may be a few unexpected expenses that were overlooked during the planning stage.
Until the money comes rolling in hand over fist, it's best to be frugal and cost conscious when buying office equipment and supplies. Buying new equipment and supplies to equip a business venture is exciting, but the last thing any home based or small business owner wants to be so far in debt that they become overwhelmed with pressure to make things work. A little frugality on the front end will pay off handsomely in the future.
Here are a few money saving tips for buying business related equipment and supplies:
- If you don't need it yet, don't buy it. Buy what you need when you need it. Don't get caught up in the purchasing excitement. Keep in mind that technology changes rapidly. The desire may be to buy the computer gadget now so that when the need arises eight months from now, you will be prepared. Eight months from now, that computer gadget may be out of date and in need of an upgrade.
- Look into leasing equipment. Leasing allows a business acquire the necessary equipment in order to remain in business without expending large amounts of capital up front. There are pros and cons to leasing and any astute business owner, with advice from an accountant, will thoroughly review both the pros and cons before making a decision to lease.
- Investigate refurbished equipment. Most reputable equipment manufactures will sell refurbished equipment and offer a limited warranty. Before buying refurbished equipment, be sure to review the warranty thoroughly to ensure it offers ample protection. Refurbished equipment such as computers, digital cameras and other electronics have proven to be reliable and cost effective.
- Keep an eye out for liquidation and going out of business sales. A great way to get office equipment, supplies and furniture for a fraction of their cost is to find a liquidation or going out of business sale. When a business has to close shop and liquidate all of their assets, generally they want to do it as quickly as possible. Sometimes it's as easy as being in the right place at the right time to find out about such a sale because they are not always advertised. Be prepared, however, to transport the equipment. These types of sales do not offer delivery service.
- There's always eBay. If a business needs it, eBay will more than likely have it. In order to save money using eBay, home based and small business owners should do their homework and have a pretty good idea of how much equipment costs before bidding on eBay. It wouldn't make sense to pay full price on such a bidding site.
Any successful home based or small business takes planning and research. Be sure to investigate the pros and cons for each of the above suggestions before purchasing office equipment. When the business has become established and is operating in the black, then it is time to consider buying newer and better equipment.
Read Home Office Productivity for tips and advice on how to make a home based business more productive.
