Aren’t we all so amused by the big successful stories we read in paper or online about the most successful businesses?
The mega-corporations, ultra successful businesses, internet sensations were always a small idea in the beginning, that led to starting up ventures and risking almost all of their savings.
It took them real insightful informations, instincts and some really conscious decisions to reach the heights they are at, today.
Here in this blog, we have tried to accumulate top 10 tips to save money as a startup from the learnings of the biggies.
One of the most economical ways of starting out a new venture is by using your home as your little office. This is technically the most reliable and economical source to save the little money you have. Don’t forget Money saved is money earned!
You are now saving additional rent, bills and charges which can be later invested into inventory, raw material or anything more important.
When you’re using your home as your office space, make sure you keep a sufficient amount of space for your raw material, goods or finished products. It will be convenient and secure at the same time.
Many new entrepreneurs are observed committing this frequent mistake. Starting out your venture with new equipments is not ideally advised by many successful people.
New equipments are nothing but costly and require huge investments. It is always an intelligent decision to start out with used equipments. They save costs and risks.
Also, when life is uncertain you cannot be very sure of having a successful venture. The unfortunate circumstances might lead otherwise. Therefore, the initial stage of the business is the stage where you try and test. Investing huge amount of money can put your entire savings at risk. Avoid that all costs.
Ask the big established companies from your industry for the used machinery and you might just get lucky with fully functional machineries at really low costs. You can even ask it out on lease and negotiate it at the cheapest rates. Leasing out the machinery would prove more beneficial as you would not be responsible for wear and tear.
In the initial stage of your business, you should most definitely focus on how best you can save cash within your business to boost its growth. Without having enough liquid cash business would rarely grow. Therefore, saving cash should be on your top priority. This way you will be able to invest in the money at more important aspects.
One of the best ways you can save upto lot of cash is by bartering. You can exchange goods in favour of other goods.
For example, if you’re running a website design company and a digital marketing company approaches you to design a website for them, do not ask for money but rather agree with them on how they can create and run a marketing advert for you.
These are the survival tactics for a business. There are plenty of instances available when you can barter and save money. Simply focus and ideate on how you can do it better.
Since here we are discussing about conserving cash, working with freelancers or part time workers is nothing but the best remedy. A permanent employee is much more expensive than a freelancer or part timer.
A permanent employee may need allowances even which at the start you won’t be able to afford. So what do you need to do to avoid these costs? Do not hire anyone on a permanent basis. If your computer system has developed an issue, you do not have to hire a computer tech for that.
You can simply call an IT graduate to fix the issue within a few hours and get paid and that is it.
Similarly, you do not need a dedicated accountant to handle your cash flow and books. The basic flow of cash can be managed by you. Also, you can use an online invoice software to aid you for all your invoices and tracking expenses.
The world of internet has become super strong these days. They have a solution to all your problems, technically. There are plenty of software available that are capable of managing your entire business and activities. All you need to do is sign up and you’re ready to start.
Invoicing is one of the core needs of any business. And like most other entrepreneurs you might be facing issues of invoicing too. Creating invoices, sending them to clients and then managing payments take lots of efforts. The problem becomes worse when all of this is done manually.
Invest in an online invoice software to make your accounting and invoicing super easy. The invoice online option is faster, cheaper and involves zero extra employees. The integrated mobile app with invoice software makes sure you’re carrying your business with you all the time. It is safe and reliable.
Initially you do not really need to buy the subscription rather just use the free versions for free online invoice. So basically, you’re getting everything for free and saving all your spends done otherwise.
After you started out your business, you must be aware by now whether the business is profitable or no. if you think the business is not lending you out enough profit or it is getting declined, it is always advisable to stop investing back your earned profits into it. Rather, you can invest this earned profits into something which is nothing but giving you enough interests. This way you’re actually earning something from your money than risking it.
Experience adds costs! This is the exact case when you hire experienced employees. They charge high salaries and you are in no position to hire them right now. We are focusing on saving costs.
A strategic call on hiring employees is important. It is not always you need to hire experienced employees to get best results. Sometimes, you get the best results from new talents. You just need to have an eagle eye to find it for your business.
A small business does not have many complicated things that would need you to hire the best experts in the world. Just a person who can do basic things that keep the business running.
Hire interns first and then absorb them into your company. It will give both of you some time to understand work, culture and environment leading to better commitment towards work.
Communication is the key to survival in any industry, today. It is important to speak your mind yourself, before someone else does it. Therefore, it is beneficial for you to stay completely loyal to your vendors in order to maintain a healthy rapport with them.
In this course of time, you need to negotiate with your vendors for better deals. Communication plays an important role here too. Tell your vendors about your business, plans and situation. They will benefit you with their expert advice to the least and the entire team then can work towards achieving your business goals.
Another way of dealing with vendors is by taking the goods on credit terms and make the payments after all the goods are sold. This will be good since you will be selling the products on behalf of the vendors and enjoying the profits without even investing.
In the initial stage of any business the amount of cash that flows in is more than the amount of cash that flows out. In order to keep your situations stable, you can defer a few payments for a while on a signed agreement. This will allow you to buy more goods using the money that you would have used to make the payments and once the goods are sold, you pay them using the profit. It is one of the brightest ways a small business can see growth in their early stages.
When you buy in large quantity vendors tend to give you heavy discounts than others. Thisway you would be able to earn more profits than you have earned before. Therefore, if you’re dealing with goods that do not expire easily, it is always recommended to buys them in bulks and save huge costs.
By now, you must be clear on how to save cash for your business. These top tips are easy to follow and implement. As a startup each penny that you have counts and holds equal importance in your business. It is the initial stage of your business and you certainly cannot miss out on any of the little cash that you have. Perfect management of cash is important. One of the best things that you can do to manage all of your accounts payables and receivables is by opting for an online invoice software that is able to manage your entire business.