Cutting Down Initial Startup Expenditures: Mission Possible
There is no way to launch and fuel a business without incurring overhead costs. Still, the ability to trim the initial costs makes all the difference. It enables infant businesses to have a flying start and pays dividends down the road. You could even say it is practically a matter of life and death. So, if you really mean business, what you need to do is show strong planning skills and explore simple and easy ways of keeping the spending in check. It is time to get your financial house in order.
Work out a game plan
Regardless of how you fund your startup, frugality is always the way to go. To make it happen and prevent things from spiraling out of control, but everything down in black and white. Calculate your total startup costs that encompass equipment, office space, supplies, insurance, payroll, utilities, etc. Try not to overlook a single detail, however insignificant it may seem at first. Small items quickly add up and melt the budget. Once you have laid everything out, you need to identify where the potential for savings lies.
Get smart about office space
When cutting the overheads, focus on the office space, which is usually the largest item. Namely, in the early stages, you can choose to work from home and save a ton of money that way. The only problem is that as your business expands and you hire employees, the home office ceases to be an optimal solution. That is when you should consider a shared office. You can score extra benefits (collaboration, cross-promotion, and networking) if you manage to find a complementary business to share your space with.
Purchase supplies in bulk
Furthermore, do your homework (preferably in the form of online research) before embarking on a shopping adventure. You want to buy in bulk whenever possible rather than small quantities of everyday office items— pens, papers, stationery, etc. It is also a good idea to go for wholesale suppliers that have a wide palette of products. Just make sure to assess your needs and storage space properly so that nothing goes to waste.
Having a bunch of seasoned experts on your regular payroll is hardly an option. You are probably better off financially seeking freelance workers. Yes, full-time employees have their advantages, such as direct oversight and tighter communication. Alas, they also impose extra costs in terms of office space, equipment, paid vacation, and employee benefits. That is why the freelancing tactic tends to save around 20-30% per position. There is nothing to lose, provided that you take your time to find trustworthy individuals.
Tap into business automation
Automation technology is a real game-changer for businesses of all shapes and sizes. It allows us to streamline a variety of business processes and boost productivity at the same time. Most organizations put an emphasis on repetitive and time-consuming day-to-day task and that is where you should start. Think in terms of accounting, email correspondence, payroll, and administration. You will save both time and money and reduce the margin of human error. It is a clear win-win.
Startups are constantly hard-pressed to conserve resources and control the spending. This is no easy task and falling at the first financial hurdle could be the end of the road. But, for those who plan ahead of time and know where to look, there is no shortage of frugal opportunities. So, come up with a sound plan that revolves around reducing staffing, office space, supplies, and operational costs. Stay afloat and in due time, you should be able to improve your bottom line and enjoy prosperity.