Virtually all startups need to work at keeping costs low. Due to the limited amount of funds available to new businesses, it is pertinent for them to know how to serve their customers at the lowest cost possible. If you are just starting a new business, here are some of the ways to save costs and increase your profits.

1. Avoid Expensive Office Space

If you must run your business from a commercial premises, look for a low-cost area or negotiate for favorable lease terms. Not all businesses need expensive commercial real estate. So consider co-locating with other startup businesses in a shared space. You can also use your home or go mobile. Businesses that can be operated from home at the beginning include:

* Tech repair services

* Plumbing services

* Electrical services

* Bookkeeping

However, before you settle for a home-based business, check your local laws to know if there are any regulations preventing you from such activities.

2. Operate with a lean staffing budget

You need to keep the cost of labor as low as possible when you just starting a business. This, however, does not mean that you should attempt to do everything by yourself. You can find creative ways to get people to work for you at a low cost. Here are some ideas you can use:

* Allow your workers to go on unpaid leave during slow periods

* Let your family members assist you with as many tasks as possible

* Hire freelancers or contract staff when you have a huge workload

* All young graduates or high school graduates without experience to work as interns.

The only major downside is that you will need to invest more time in training and supervision if you are not working with people who have a lot of experience.

3. Use Alternative Energy

When you can determine the source of energy for your office, it pays to use alternative energy. Today, the price of solar energy is now more affordable for businesses that prefer clean and green energy. Using solar energy also allows you to enjoy tax rebates and refunds from your energy provider if you can send some of the unused solar energy into the utility grid.

4. Cut Vehicle Operating Costs

If you can provide your service without using a vehicle, don't bother using one until you are sure that you really need to do so. The cost of fuel and servicing can be very exorbitant. So you must reduce your vehicle use to the most essential use. If you must use a vehicle, here are some tips that will help to cut costs:

* Buy a used car instead of a new one

* Use a diesel operated car instead of a hybrid

* Use a modern car that has lower fuel consumption per mile

* Lease a vehicle instead of buying one (to avoid depreciation and maintenance costs).

5. Get the best deal on supplies

If you run a business that needs wholesale supplies, you must strive to buy your supplies at the lowest price. There are three ways to get this done:

* Price-monitoring: You need to monitor prices of supplies constantly. You must also look for discounts, sales promotions and find reliable alternate sources.

* Requesting for discounts: If you discover that a new supplier is offering a significant discount, you can go to your old supplier and request for a similar discount or switch over to the new supplier.

* Buying with other businesses: To enjoy even greater discounts and lower bulk prices, you can cooperate with other businesses that need the same supplies. Buy in bulk and then each business goes to their office with their rightful share. This is a win-win situation for each business and the supplier who enjoys a faster turnaround.

6. Let your marketing focus more on conversions

Many business owners make the mistake of trying to compete with established businesses by using mass marketing methods. This will not be very effective. People need to know you and trust you before they patronize you and recommend you to others. So you should focus on a smaller target group or audience, build trust with that group and then offer incentives inform of discounts or rewards for patronage and referrals. That way you can turn all your satisfied customers into brand evangelists. Also, ask your clients to provide online reviews so that prospects who search for you will have something positive to read about your business.

Those are some of the simple ways to save cost in your startup business. When you apply them, you will be able to use the savings to grow your business, produce more products and services and earn more revenue.