How much money is it really going to take to launch your small business? When making this financial calculation, look at every single expense item, and consider whether you can do without it. Chances are, you’ll find ways to cut your start up costs. Here are a few specific suggestions:

1. Start up while working for someone else. Do all of the planning and, if at all possible, begin setting up and running your business while you still have your day job. Each day you work, you’ll reduce your start up costs by the amount you need to support yourself.

2. Don’t rent space until it’s absolutely essential. Do you really need the office downtown? Run the business out of your den for the first year and save yourself the $400-$1200 per month you’d pay in rent. The amount you’ll actually save depends on your market and the type of space you would rent.

3. Make due with fewer phone lines. Do you need to put in a separate phone line right away, or can you make do with using your home phone or existing cell phone for business? Put off the set up and monthly line charges as long as you can.

4. Keep furniture and equipment purchases to a bare minimum. When you think about it, there is probably a whole host of business equipment and business furniture that would be very nice to have, but you can do without. For example, while it's nice to have a photocopy machine in your office, you can save the money and go to the copy shop when you need bulk copies. Consider an inexpensive all in one machine so you’ll be able to handle small printing, faxing, scanning and copying jobs.

5. Spend advertising dollars carefully. $100 a week for newspaper advertising may not look like much, but if you’ve signed up for a minimum of 6 weeks, you’ve committed to a $600 expense. Test all advertising media before signing long term commitments. The 1x rate is higher than the 6x rate, but you’ll save a bundle in the long run.

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