While I take some time off for maternity leave, I am thrilled to feature some stellar small business owners and freelancers. These contributors have been right where you are: in the trenches of growing their business, creating products and services that resonates with their audience. They’ve got tons of great tips to share!

First up is Kara Perez, sharing what she’s learned on a topic that I know is a struggle for many new business owners.

Where to Spend & Where to Save When You Start Your Small Business

Small business is the best business, in this freelancer’s opinion. Striking out of your own is a thrilling experience!

Starting your own business can also be complicated, hard and exhausting, but one thing it doesn’t have to be is expensive.

There is a delicate balance to be struck between spending and saving on your business. I’m a firm believe in paying for quality when you need it but also taking advantage of the many free options available today. Free is sometimes the answer, but there are definitely shortcuts you shouldn’t take.

It can be scary to pay for a lot of things upfront when you’re just starting out and not sure of your income.

My tactic to figure out what to spend on and what to save on is to think long term and big picture about my business. I’m a writer, so having some place to showcase my writing portfolio is key. For example, a self hosted domain was a no brainer for me to spend on. In other areas, saving made more sense.

So where does that line fall? How do you know whether to invest or to look for a free option?

When you’re just starting your small business, here are the areas where you want to spend… and three areas where it’s okay to save.

Spend: Self-Hosted Domain

It’s critical to have a professional website you can tweak whenever you need.

You need to have a .com address to rank well in searches and to show customers that you’re a legitimate business.

Going the self-hosted route will also teach you valuable web skills that will make you feel more competent as a business owner, and maybe even more marketable. This one is definitely worth the price tag!

Katharine’s note: I use HostGator for both domain and hosting, and I highly recommend them! Easy interface, excellent customer service, and very reasonable prices.

Spend: Logo

I’m actually behind on this one myself, but it’s so important!

To build your brand, you have to give yourself an image.

Invest in high-quality design that projects the feel and look of your business, and do this as quickly as possible. I personally love to work with local businesses whenever I can. See if there’s a local designer on Google, or try finding someone on sites like 99Designs to design something for you for a reasonable price.

Katharine’s note: Remember, in design as in everything else, higher quality is going to cost you! But, you might be able to swap services with a designer who is just starting out and trying to build their portfolio.

Spend: Headshot

You need to have a few professional photos to use for your marketing and branding.

Showing your face helps generate trust and create a relatable company image, and to do this you need photos that weren’t taken with your phone.

These photos will go on your website and social media, so you want to project confidence and competence in them. A quick photo shoot won’t break the bank, and you can use the photos for a few years. Wear a professional outfit, and get a few of you standing, sitting and a close up of your face. And remember to smile!

Save: Social Media Outlets & Managers

You don’t need to pay for social media services when you’re starting out.

Pick the three biggest platforms for your business and create handles for yourself. Keep the name and image of yourself consistent across them all. Use a free manager like Hootsuite to schedule posts.

For beginners, this is a great way to keep content flowing as you more specifically find your voice and market.

Katharine’s note: Make sure the bio on your social media profiles is consistent and descriptive! You want people to know who you are and why they should follow you immediately.

Save: Networking Events

Paying for memberships or high priced event tickets when you’re starting out can drain your budget quickly.

Instead, reach out to people you admire via email or social media. Tell them what you love about their work, and mention their influence on your own. Attend free events of all kinds. You never know who you’ll meet at a gallery opening, even if you’re not in the art scene yourself.

Don’t ask for something right away. Remember, you’re building relationships here!

Save: Courses or Coaches

There are courses from a million different business coaches online, many of them awesome, but none of them essential at the very beginning of your business.

While I firmly believe in learning from others, these aren’t necessary when you are absolutely just starting out. You need to get your feet under you a little before you shell out for a business coach. Plus, there’s a ton of free content out there to get you started.

Start by reading and learning as much as you can on your own.

Spend a few months trying different things and ramping up your production. When you’re ready to get to the next level, or move in a different direction, find a course or a coach to work with.

Katharine’s note: Many coaches and entrepreneurs offer free mini-courses. These are not only packed with useful information, they’re a great way to find out if investing in the full course or coaching service is worthwhile!

When trying to decide where to spend and where to save, remember: different businesses have different needs.

Spend on the areas that will take your business to the next level.

*****

About the Author

Kara Perez graduated from Wesleyan University with a B.A in English. She is passionate about helping women take control of their finances and Gilmore Girls.

Read about her adventures in frugal living at From Frugal to Free, or find her on Twitter and Instagram.