If you are thinking of finally quitting your day job and starting the business you always dreamed of, there are more than a few things to consider before you take the jump. Of course, you may have considered the obvious already: relying on your savings for a substantial amount of time; the possibility of failure; needing a substantial amount of knowledge and research in order to kickstart your goals; finding an appropriate gap in the market… The list of possible risks goes on and on. Nevertheless, like many brave entrepreneurs before you, you may have tackled these risks head-on, storming ahead to achieve your dreams of a startup.
If you have already kicked off your startup and are finding that money is tight, you aren’t alone. Here are five ways to save money on your startup, giving your business every chance of success in these trying times.
- Automated Administration
One of the biggest costs in a business is hiring employees. While eventually, it would be amazing to have a whole team in your startup, working tirelessly to achieve your goals, that might not be achievable right now. Many companies use administrative assistants and agencies to maintain the everyday running of their office admin, but this option can seriously eat into your budget. Instead, look into automated back office administration programs. Although these usually charge a high monthly fee to operate, they avoid the need for an administrative employee, as well as achieving all your startup’s administrative needs with no human error.
- Cost-Effective Outsourcing
Once again, in a drive to avoid in-house costs, it can actually be more cost-effective for your startup to outsource certain aspects of your marketing or advertising strategy. Most startups can’t afford to hire a specific marketing or advertising specialist on a permanent contract, so opt for outsourcing these responsibilities to experienced agencies who are guaranteed to yield results on your behalf. This is a great way to save money for a few reasons: you know the results will be positive; it avoids further in-house hiring; and finally, allows you to take the weight of responsibility off your shoulders in this specific area.
- Wholesale Strategies
If your startup uses a lot of electrical equipment or specialist equipment, this can be highly expensive in the beginning. Seeing as most startups barely turn a profit in their first few years, buying and using this equipment – even something as simple as a car, computer or artistic equipment like printing mills – can seem unaffordable. This is why wholesale electronics are about to save your bacon. If you need to buy electronic equipment on a regular basis, ensure you are getting the most for your money by developing a wholesale strategy.
- Saving Space
Your startup is likely a small team of people working out of a tiny office space. Right? This is seen as one of the most cost-effective ways to run a startup that allows the team to connect on a daily basis, providing you with a hub you need to innovate successfully. However, if the COVID-19 pandemic has taught us anything at all, it is that working from home is a very viable option which suits many businesses. If you don’t already work out of your home office, perhaps consider this as a money-saving option. Even if the change is only temporary or part-time – you could hire an office space for two days per week rather than five, in order to connect with the team face to face – this is highly cost-effective and can improve your quality of life too!
- Targeting a Small Customer Base
One mistake many startups make is that they try to go too big too fast. That is, the excitement of reaching a wide customer base takes over their logic, and before you know it, the business is being stretched thin. If you relate to this concept, it is crucial that you focus on a small customer base which will act as the foundations for your company’s success. Pinpointing and accessing a small plot of customers who will receive undivided attention from your company builds your reputation slowly, giving one hundred percent satisfaction without missing a beat. This will help you broaden your customer base when you are ready, helping you to ease into success at a rate that does not put your startup in danger.
To conclude, your startup deserves the best – and during this pandemic, the best is difficult to achieve. Saving money without skimping on the things that matter most is tough, but with this helpful guide, your startup can reach new heights while saving money too.