How to Save Money When Launching a Startup

20 Sep 2017, 01:13:35 PM


Starting your dream business can be hard, slow and risky. Notwithstanding the overwhelming stuff required to create a successful enterprise, building a product that people want can be costly. Of course you can quit. But to build something successful can be a real deal-breaker and worth all the hardships. No matter what, many folks are increasingly taking the chance and making their business ideas turn into a success. One important aspect to consider when starting a business is the amount of monies you have in stock. Here are some tips to save before acting on your business idea: 

1.     Source Your Friends and Family. This is the easiest route when you want to save money. Instead of looking for new hires, look around for people who may have the skill sets that you’re looking for. Your cousin who is a recent graduate of accounting might be willing to balance your books right? Seek out friends or relatives. Once they give in, just be helpful in whatever way you can.

2.     Save money on office space and fancy furniture. Sometimes a small garage or your cramp apartment can provide a temporary abode for you when starting up. Coffee shops? Actually anywhere that has free WiFi can be your temporary work area to save money. While it’s tempting to convince yourself on investing on fancy desks and furniture, simply don’t. Figure out your bare minimum and resist the temptation of giving in to your early designer cravings. In short, be aware of your budget and basic expenses.

3.     Use Social Media. When you think closely enough, you can save heaps of money by getting your brand a Facebook or Twitter fan pages to spread your marketing message. Not only social media platforms powerful, they are every bit as effective as the traditional advertising media. Of course am exaggerating, but it’s wise to use social media in relaying your brand’s voice to a wider audience. Placing a few inches of newspaper ad can already cost thousands of dollars while on Facebook, you’ll only need a bunch of creativity and savviness. 

4.     Scout for Location in Low-cost Areas. Starting your business in high-cost nations like the US or Europe can be crippling to most startups. Everything – from rent, labor, taxes – can instantly dry your money and instantly hamper what you can achieve. Don’t start with the thought of raising capital from investors because that could mean extra layer of pressure to entrepreneur like you. Starting somewhere, like in low-cost countries, cannot be such a bad idea, isn’t it? While this may come with other disadvantages, such as language and cultural differences, but your taking a risk may pay off eventually.

5.     Simplify Things. Everything has to start somewhere. Businesses can start small and grow gradually. From your business idea to the actual implementation of your dream project, it is only a matter of effort and time before you can create value overtime. It also pays to keep things small and simple to save on costs. Here’s a tip though: keep a well-defined mission and branding when starting to avoid having to repeat and make couple of changes in your strategy.

6.     Learn the art of negotiation. If you’re just starting, this is one skill you need to master. Negotiate judiciously without quickly giving in to the temptation to pick the earliest offer. Think deeply whether to accept a client’s fee to a rate even if it would compensate you fairly. Who knows if there are other clients who will come forward to offer you higher rate. The same goes when you’re trying to get a supplier’s price down. Have the gumption to get those numbers to where you want them. 

7.     Don’t obsess with quantity. It’s still about quality. Hire only the best people. Your team may only be few but if you have all the best to help you run your business, that’s already a lot in terms of how much they can deliver quality-wise. It also pays to get those who can multi-task and do as much as they can on their own to avoid spending extra money on hiring additional staff.

 

Image from Flickr

 

 


Startup, funding