As a startup, your goal is to control costs and maximize profits. However, these objectives can seem unattainable because your business is trying to find its footing. The good news is cutting costs does not mean sacrificing business growth or product quality. Today, thanks to technological advancement and an array of cost-cutting options, small businesses can scale down costs and thrive in the competitive business environment. Let us look into some easy tips to help you reduce startup business costs.
Have a Proper Budget & Stick to it!
Any serious entrepreneur should account for how money comes in and goes out of the business. In essence, it is impossible to cut costs if you do not have a proper business budget for your expenses. A budget is a measuring metric that helps you understand where you stand at any time. It is pretty much a control center that keeps you aligned to your goals. With a budget in place, you can decide what decisions will aid the growth of your business. The good part is that there are many free resources, including downloadable budget templates and worksheets that simplify the process as you start out with a limited budget.
Reduce startup business, while you might want to do everything in your new business, it might not be tenable. First, you might not have the technical know-how, and two, doing everything might slow your efficiency! Some business tasks will need the application of a specific technology that you might not have or afford to buy. The beauty is that now you can outsource many services.
For example, you can cut down IT costs by outsourcing from a Managed Service Provider (MSP). For instance, did you know that you can enjoy end-to-end IT support from anywhere to keep your business running on a budget? Yes, all you need to do is find and partner with an MSP to get access to top IT services on the budget you can afford! That’s but an example of doing outsourcing the right way to cut costs on your startup.
You can use outsourcing on other facets of your business, rather than investing a lot in in-house infrastructure and hiring talent.
Invest a lot in the Right Tech
The benefits of technology in your business cannot be over-emphasized. As an upstart, you might not have all the money to invest in cutting edge technology. Luckily, some of the best technological solutions are cost-effective. For example, you can use cloud computing instead of physical servers and other equipment in your office. Teleconferencing and remote workers can help manage business costs, while webinar helps you attract potential customers without spending much money.
Other ways to use technology to cut costs are:
- Cutting hiring by automating whenever possible
- Taking advantage of free apps and tools
- Investing in business integration.
As we have mentioned, one other great way to reduce startup business costs as a small business is to a remote work model. According to one research, a company can spend up to $22,000 on an employee per year! Keep in mind that this price might go up depending on the location of your office. Well, if you are looking to avoid this expense, you can allow your employees to work remotely. There are many other benefits of working remotely for startups. The bottom line is that you can retain the best talent, increase efficiency, and save a lot of money through remote work,
Maximize on Digital Marketing
Looking for easy ways to save an enormous sum of money in advertising? Why not make use of your digital platforms? Invest in cheap forms of marketing via your website and social media pages.
Outbound marketing can be quite expensive, and it’s important to look at the outbound marketing costs and see what you can substitute. For example, you can decide to cut down advertising budgets, trade shows, and general events that cost you a lot of cash. Use cheaper digital alternatives that might give you better ROIs.
Well, take time, to sum up the expenses you incur on paper, mailing supplies, postage, etc. The total cost will make you rethink your decision and go paperless. You can cut this business expense by:
- Not printing anything unless necessary
- Filing everything in your computer instead of a file cabinet
- Investing or transitioning to a digital invoice and billing payment system
Being business savvy involves a continuous search of solutions to grow the venture. The economy is getting rougher and you must diversify your cost-cutting options to enjoy a substantial impact on your books. Other cost-cutting methods you can employ include reducing credit card debt, using refurbished equipment, and more.