Find out how to cut the costs of your startup so that you can put more money into growing the business.
Cash is not the top priority for a startup, but that doesn’t mean that it isn’t important. You can be as creative and innovative as you like, but you need at least some cash to grow the business.
The good news is that startup costs can be dramatically decreased with a few savvy choices, including these:
Cut The Cost Of Your Workplace
You could try working from a cheap self storage unit, or at the very least, work from home, hot-desk or work in cafes. Whatever your option is, it means avoiding the cost of an office rental, which can suck up a lot of money for very little benefit. Virtual offices are also a great idea if you want a sense of placement without the cost of an office rental.
Many startups go wrong because there is no budget. There is sometimes a sense of frenzy in ‘doing business’ without any of the paperwork being done, which can kill a business quickly out of nowhere. By budgeting and keeping track of all your expenses you will be able to forecast issues with income, and hopefully, make changes to avoid those issues being catastrophic.
It is a common business mistake to try and do everything yourself when you start up. However, it can also be a mistake not to get other people to do certain jobs too. Sometimes you need to get certain tasks outsourced to free up your time so you can focus on growth. Good examples of jobs you can outsource include; blog writing, website design, data entry and even video content production. You can cheaply and easily have these kinds of jobs done by freelancers on sites like People Per Hour, Upwork, Fiverr and FiveSquid.
Trial periods of anything from equipment use, to technology programmes and even business apps are useful when you are a startup because they usually mean reduced rates or even free use of the services. Being savvy about these trial periods can save you a lot of money in those first six months and perhaps longer if you take advantage of introductory offers too.
Never Buy New
Whether you need a van to make deliveries, or you want a printer for fulfilment and posting, there is always a bargain to be had in the world of second hand. This is so handy as a startup because you might be trialling new methods of production, you could be on a very strict budget, you could even be considering whether or not a startup is even viable for you. Rather than splashing out a ton on new equipment and furniture, use online selling sites so you never go too far out of pocket. Anything you no longer use, sell on those same sites and bank the money back for the business.
With these tips you are well on your way to keeping your costs down as a startup. Hopefully, with those savings and clever management (and a bit of luck) you’ll be one of the startup success stories of 2022 and beyond.