Business Startup Expenses You Need To Avoid

As a business owner, you have to learn to invest your resources wisely. There are business startup expenses that are not entirely essential at least at the startup level. If the money you shelled out does not help your business grow, it would be better invested elsewhere.

Business Startup Expenses You Need To Avoid

These are the business startup expenses you need to avoid

Related: Small Business Expenses To Maximize Efficiency

1 – Expensive Equipment

Expensive Equipment

Spending your money on the latest and greatest stuff is always tempting but its usefulness to price ratio is something you cannot easily justify. Invest in the equipment that you really need while trying to be as economical as possible. You'll get the chance to buy the stuff you want later on.

2 – Staffing when your business is not ready yet

Staffing when your business is not ready yet

Employing too many people can quite literally create a hole in your pocket. If it makes great financial sense to bring on more employees to help your growing business go ahead but if it doesn't then consider outsourcing your manpower. It's more economic and you still get the effectiveness of the team of people working hard to help you grow your start-up business.

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3 – Expensive subscription based software or services

Most of the time they work better than the free versions but, consider the fact that the money you spend every month or year for the subscription could be invested additionally on something more worthwhile. The free version of most software programs do 70% of the things that most businesses need. Use them until you are convinced that your really need to spend the money to access exclusive features to get the results you need.

4 – Extravagant printing expenses

Extravagant printing expenses

Investing some of your money into developing a good logo and reasonably priced business cards is alright but spending loads of your cash on expensive “professional looking” business cards, business stationery, etc.. makes very little to no sense and is a huge waste of resources.

5 – “Buying” followers, fans, email marketing lists, or customers

This is blatantly lying to yourself and your customers. You know it's wrong but you still do it anyway for the sake of the numbers. In terms of investing in it, you end up losing money because all those fake follower and fan accounts are never going to give you a return on your investment. You could argue that you might get your return on investment later on when you can grow your following with organic or real fans and followers but it would take quite a while.

Related: Earn Customer Loyalty By Focusing on Customer Experience

6 – Efforts to reach out that cannot be measured

Cashing out to fund your marketing or branding could be an okay investment provided you did your research and can measure the results. Spending money on things that do not have measurable results could be seen as a bit of a dead investment.

7 – Expensive business trips or parties

Expensive business trips or parties

Spending your limited resources on these events are not wise to say the least. The money spent for these parties or trips could be better allocated in your marketing efforts or in other more worthwhile

8 – A fancy office

A fancy office

Spending a ton of money on a flashy new office with all the fancy stuff is not a good investment. Expenses quickly pile up in the process of assembling your new office. Sure it makes you look more professional but does it help your start-up business grow? No it does not. It would be more helpful if the money being allocated to the office and office furniture be spent on necessary equipment and/or marketing efforts.

9 – Expensive clothes

A bigger ego does not equal a bigger business. Achieving a professional look can be done on a budget fairly easily, shop smart when looking for clothes and you'll be able to replicate the “look” you desire.


  • Not living within your businesses' means – Spending your limited resources or rather, by overspending your limited resources