3 Ways To Reduce Start-Up Costs
Running a business is a hard job. It requires dedication and hard work. Not everyone can quit their 9-5 jobs for a start-up. Creating your own business means you are your boss. You call the shots and make the important decisions. However, it also means that you need to make sure you are seeing profits at some point in time. For a start-up, money is everything. It is an expensive ordeal which is why most entrepreneurs go seeking angel investors and venture capitalists to fund their start-ups. This, however, doesn’t mean that you cannot make small but effective changes to reduce your costs. As a start-up mentor in Mumbai, I know of a few ways to reduce these costs. Here are some of the methods I’ve employed that have been of immense help in the long run.
Technology technology technology
A majority of newly formed start-ups are opting to go the paperless route. With technology being as advanced as it is today, it’s become easier to save and send documents, invoices, receipts, etc. through digital means. If a start-up can properly implement this, it saves them a lot of money. Many say that a start-up that is paperless is known to be more productive.
In addition to the advantages of going paperless, it’s also important to know why using paper is a thing of the past. If your start-up is operating out of an office, it will require printing machines. Maintaining said printer is an expensive ordeal. Going paperless only requires you to have a stable WiFi connection. Besides, it becomes easier to communicate with members of the staff if you conduct your business through digital means.
Tracking is key
As a new business, it’s important to know where you are spending money. It’s imperative as a business owner to keep track of your expenses from the get-go. Expenses like purchasing equipment, hiring employees, marketing etc. need to all be accounted for. Every expense, however big or small is important and must be noted down.
The way to keep track is to keep note of all these expenses. Keeping records of expenses allows you to review and understand where you may be spending a little too much. It will help you cut costs. Records of your purchases also help in times of legal troubles. It creates a paper trail and everything is accounted for.
As I said before technology is the future and it can help even in this case. There are various software tech and apps available for start-ups that help track their expenses. Taking advantage of these resources would greatly help the start-up.
As a start-up, you need to save wherever you can. Marketing is an important aspect to engage your audience and build up credibility. However, most times, marketing can become expensive. Digital marketing can help in this case. As a start-up owner, you must familiarise yourself with this new avenue of digital marketing. Understanding SEO optimisation, the power of social media, blogging etc. are all very important. All these methods if implemented correctly can help your company with customer acquisition and growth in the long term.
The best part about digital marketing is that it very cheap and most of the times free. Proper use of social media platforms like Facebook, Instagram, Pinterest, LinkedIn can help increase customer interaction and customer base.
To Sum Up
Money is the key to everything and as such it’s important to preserve it where you can. That being said, some instances warrant you spending money to further your business prospects. At those times it’s important not to be cheap or unreasonable and spend that money. Those opportunities can be highly beneficial for your start-up. For now, if you follow these three simple tips, it will help you save money and time and help you optimise your workspace.
About Devansh Lakhani
Director of Lakhani Financial Services, and a Chartered Accountant, he helps start-ups raise funds from his network of investors. He guides and advises start-ups to scale up by providing efficient sales, marketing, team building, and business management strategies. He has executed fundraising by block deals on the stock exchange and conducted IPOs and right issues on the SME platform to the tune of over Rs. 50 Crore. He is currently working with start-ups from various sectors to help them channelize their business models and investments.