One crucial issue for every business, especially startups is costing. Getting your startup off the ground requires efforts and of course, costs never disappear from your list of challenges. Even if you have a large capital, you still need to skimp unnecessary expenses, as your growing business might face unexpected costs.
You must know what are the necessary areas you need to spend on as at the end, if your startup is funded by investors, all costings are to be reported. So, if you are starting out, these are 5 actionable ways you can reduce the running cost of the startup while maximising profit.
1. Outsource strategy
Outsourcing can be a great alternative to hiring great talents in addition to your current team. However, outsourcing might be a bad idea if you want to fill some strategic job positions. Thus, outsource positions where necessary as it can ultimately save you money and still gives you the results you want.
2. Telecommuting employees
On this highly-advanced technology era, telecommuting is one of the best alternatives to employing great talents at affordable cost throughout the countries. Many corporate companies and startups adopt the idea as it provides the flexibility and cosy workstation (home) for the employees. Lesser employees in the office will significantly reduce overheads too.
3. Social media marketing strategy
Instead of using expensive marketing methods, your growing business can further save cost by using social media marketing. Some crowded platforms like Facebook, Twitter, Instagram and LinkedIn provide a great number of users, and of course, they are all FREE!
Keep in mind that something free doesn’t always work optimally if you don’t have the essential tips and tricks to skyrocket your startup. Focus on learning how to optimise such platforms!
4. Buy Wholesale Products
Instead of buying products in pieces, it is better for your startups to buy the products in bulk. The bulk purchases will get you more discounts and also lesser the shipping costs, saving time and effort.
5. Apply partitioned workplace
Renting a large office with more than two rooms might be costly, and this could be your greatest expense that affects on other costs of your starting company. Instead, rent a suitable size office and if you require more rooms to work with, then partition the workplace.
However, keep in mind that partitioned workplaces should be properly designed and provide easy access for fresh air and optimal lighting to each of the artificial rooms.
Reducing startup costs is possible, and these tips are worth a try. Make sure that your employees understand your cost strategy, so that they will not consider you as a stingy, strict startup founder who doesn’t want to invest in the business. Good luck!