Another suggestion is to negotiate with your landlord for free rent during your start-up phase. Many office buildings are willing to reduce or even forego rent for as much as a year just to get tenants in the door.
Tools and Services
Everything from paper clips to computers are your work tools, and everything from phone charges to business consultants count as business services. All these items are fair game for bootstrapping.
Buy office supplies in bulk whenever you can. Lease equipment and vehicles, rather than buying them. Keep your fixed costs down by turning as many tools and services into variable expenses as you can. That way your cost of doing business will grow only as your income grows.
People
Controlling labor costs is probably the most formidable challenge you'll face. Don't learn the hard way, for example, that turnover wreaks havoc on your profits. When it's time to hire, do it carefully and intelligently. And if a person's performance isn't what you'd like, don't be quick to fire them. Work with them to improve.
While competitive compensation is essential to attracting good people, it doesn't have to all be in the form of salary. Remember the tip about turning your fixed costs into variable ones? It works in compensation as well. Supplement a small salary with the potential for healthy bonuses based on your company's earnings.
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