Burning your startup cash?
It is not an unknown fact that only 10 per cent startups survive after the initial few years for varied reasons. Planning and keeping track of the finances is of utmost importance for a startup, especially bootstrapped ones as funding and loans would not be given at the drop of a hat. Even if you manage to get one, adopting a frugal approach is what is going to save you a lot of money for a rainy day.
Here we have the top 10 tips on saving your startup cash:
Be Uncle Scrooge: Before going ahead and spending on something that sounds appealing for your business, take a step back and analyze if it is something that you really need. If you have been a spender till now, it is high time to bring about a change to your personality.
Go Green: Steps as simple as turning off the lights of the meeting room when not in use, using both sides of a sheet of paper to print documents, using energy efficient appliances etc can go a long way in saving you some extra cash.
Sharing is Caring: If your business does not require a large office, try finding a small space to work that may be free of cost. Turn your basement into a warehouse or use the garage as a makeshift office. Alternatively, if you have a few extra seats in your office space, lease them out on rent.
Barter is Good For Business: Instead of paying for the goods and services from another company in cash, try providing them with goods or services that are generated by your business. Example: if you are taking help from a marketing agency to promote your web development company, instead of paying them in cash, you can offer to build them a website.
Second Hand for a Fist Full Of Cash: When purchasing furniture, save money by purchasing good quality used furniture and electronics like tables, printers, fans, chairs etc. You can even buy used laptops and give them a new life by updating all the softwares.
Hire if Needed, when Needed: Even though you may have chalked out a business plan for the coming year, but that does not mean that you start hiring employees for workload that you do not have presently. Try and outsource projects that are short-term or ones that are more economical when done by an external agency.
Take Interest in Interns: You can get some efficient interns to work on key projects. A- they will bring some new ideas and approaches to the table, B- they will be willing to work for much less, compared to what you pay to a full-time employee.
Take advantage of Technology: Automate as much operations as you can right from the beginning. Set up a website to promote and sell your goods and services or create an app for the same, depending upon your business model.
Tax is not always Taxing: Hire an experienced financial advisor to tell you how you can save money on taxes and insurance. It is prudent to do some research on your own as well as to what all deductions can be made from the amount that you will pay as taxes- be it travel expenses, marketing, advertising etc.
Put Your Business First and Yourself Second: At all stages of your startup, especially initial, make sure that you keep your personal and business expenses separate. The profits from your company should be spent on the business itself and not on funding your trip to Europe.
What are the possible cost-cutting initiatives for your workspace? Please put in your comments.