One of the biggest concerns to any fledgling business is start-up costs. When you take the plunge and are getting to grips with running your own start-up business, the question is how can you minimise the costs associated with getting things off the ground? Here are the top five tips for reducing your start-up costs and save money at this crucial stage of business development.
1. Don’t waste money on your initial product
Your top goal when first getting your company off the ground is to get to market as fast as possible. Use websites like Upwork that allow you to get something to market at a cheaper rate. Investors and entrepreneurs both talk about the pitfalls of outside development. When you’re just starting out don’t worries about any of that-just make something customers can give you feedback on.
2. Set a monthly budget – and stick to it!
One of the common reasons that a new business fails is due to a home the bacon for it to exist so you need to keep a lack of cashflow. A business needs to bring tight rein on your business start-up costs to give it the best chance of success. Again,if you’re starting a new business, running it from home will save you a significant monthly outgoing on rental space, and you can make a saving come taxation time by accounting for your property as doubling as your office. A lot of people struggle with numbers but with the right help and a sound business mind you can do it.
3. Ask yourself if the reward is worth the expense
Before I spend my start up’s budget, I ask myself what the probability is that the money I’m putting in will have a positive return i.e, nothing but ROI. Every entrepreneur concentrate on getting the first customer, generating revenue, and becoming profitable in short and long term.
4. Opt for freelancers rather than full-time staff
When you’re just starting up a business, there is so much to do in terms of establishing the company itself that the actual process of running the business operations can suffer unless you are able to delegate responsibilities to others. However it is a big, expensive step to employ and manage full-time staff. The solution here is to employ freelancers on a per project basis. The business world is awash with freelance talent that for whatever reason hasn’t committed themselves to one employer – so make use of it! Then not only will you be saving on employee costs such as national insurance but you can utilise their services as and when you need them, rather than still paying if the work isn’t there – a great tip for minimising your business start-up costs.
5. Establish partnerships to grow your business
When you start to have success with your start-up business, your clients may sometimes ask whether you can provide an additional service to your primary offering. It’s a great way of broadening your offering and growing your business through product development is to upsell and cross-sell your products and services in a viable way. Through establishing high standard partnerships with similar sized start-up companies in turn offer sector related services. This can be a two way thing, so they can offer your services too, leading to both companies growing in a win-win situation. Finally LinkedIn co-founder Reid Hoffman is rightly said, “If you are not embarrassed by the first version of your product, you’ve launched too late.”
Chandreyi is a Content Marketing Specialist and Social Media Manager at Skyline. She specializes in building engaged online communities and sparking conversations about business-to-business marketing trends. Follow her at Google+ or tweet her at @chandreyisaha.