Many people are ready to leave their 9 to 5 jobs to build their own business, but this transition is not easy. Starting from scratch can be inspiring and optimistic, but there are many challenges for entrepreneurs who wish to keep their startups on track of success. And the biggest challenge undoubtedly lies in cash management. Some expenses are necessary, and the trick is to know the difference between those and the ones that are not. That’s why we’re about to show you how to cut costs for your startup business without sacrificing productivity or quality.
One of the largest initial expenses lies in office space rental, so here also lies the biggest opportunity to minimize the cost. There’s no need for commercial office space right away, especially not in a prime area – you need to let your business grow and begin earning a sustainable profit before that step. A home-based office is the most affordable first step and you can keep with it as long as reasonably practicable. This is a perfect solution when there are not any employees yet, and even when you start hiring you can allow them to work remotely in the beginning. The alternative could be a virtual office space, or you can opt to share a workplace with other startups which is definitely more affordable than renting a professional workplace on your own.
When you do enter into an office space, don’t make the mistake of purchasing new furniture and equipment that’s not crucial at that moment. These things can be easily found at the pre-owned condition at much lower rates and that won’t make any difference concerning quality or productivity. Another way to cut the office cost significantly lies in understanding the impact of alternative energy. Due to growing research and development of alternative energy, today it’s much more affordable for businesses to take advantage of its forms such as solar energy. This will also allow you to enjoy refunds and tax rebates if you send the unused energy into the utility grid, making these types of savings ongoing and able to add up constantly over the years.
Although there are ways of lowering the cost of labor, the best way to cut costs is to determine when you actually need employees. It’s always good to have a team but, when you’re at the very beginning, it’s also good to do as many tasks as you can on your own. We don’t mean all of it – just the ones that, for example, a hired personal assistant would do. Of course, you can’t run a business without employees, but do they need to be on full-time pay? You can cut costs without sacrificing any role or responsibility by outsourcing. There’s an enormous pool of talents on numerous outsourcing platforms such as Upwork or Freelancer who you can hire on a contract basis easily. You can also let your family members assist you with some tasks, provide young graduates without experience with an opportunity to work as interns, and allow the workers you needed to hire to go on unpaid leave during slow periods.
Top-notch branding is crucial for success and marketing plays a vital role, but that doesn’t mean you need to empty your bank account to come up with a good marketing strategy. We live in a world ruled by rapidly growing technology, so there are numerous easily accessible and affordable tools on the Internet. To grow your business with these digital tools you just need to learn about different aspects of digital marketing such as email marketing, social media marketing, blogging, etc. When you get to know them properly, using all these resources becomes free.
Employing digital marketing strategies across various social media platforms such as Facebook or Instagram will go a long way and cost nothing, and the cost of emailing newsletters is insignificant. Using mass marketing tactics as a startup and trying to compete with established businesses is highly ineffective and therefore futile. You need to allow your audience to know you and develop trust first, and digital marketing tactics are made for that. Additionally, there are numerous free tools on the web for growing your small business that go way beyond marketing itself, designed to improve operations, save time, and, eventually, save money.
As you can see, cutting costs is all about paying attention to how the cash flows in the business. When it really starts to flow in, that doesn’t mean you can put it in your pocket or start spending it on irrelevant or luxurious things – always use the most of it for future growth.