While some start-ups are lucky enough to have angel investors that can invest millions of dollars into their project, the truth is that most start-ups just don’t have this kind of funding to help them launch or become profitable. Often, entrepreneurs are using their own funds or small business loans to get their businesses started and keep them running over time.
That’s why it’s imperative for start-ups to keep costs to a minimum, at least in the beginning stages. Here are five ways you can do just that by shaving down your costs.
1. Allow Employees to Work Remotely
Allowing employees to work remotely provides a range of diverse benefits for your company, including increased work satisfaction and higher employee retention rates. Remote or flexible work options can be an amazing perk for start-ups to offer when they are unable to provide other bonuses or benefits that attract talented employees. Some people may be willing to take a pay cut or go without other perks if they are able to work from the comfort of their own home.
Allowing employees to work remotely also cuts down on the typical costs involved in running a physical business location. If your company is entirely remote, you won’t have to pay to rent a physical space or buy office equipment and other supplies.
2. Outsource When You Can
There are a lot of costs involved with hiring employees, not to mention a lot of paperwork and other liabilities and legal requirements. In addition, there are the costs of offering benefits and renting space for your employees to work from. One way to save on the costs (and hassle) of hiring full-time, in-house employees is to outsource some of that work to freelance professionals.
There are many benefits of hiring freelancers, including the ability to tap into specialized expertise that you may not have on your in-house team. Though experienced freelancers will expect a fair rate for their work, you don’t have to provide them with benefits or equipment like computers or a work desk. This is a great option for start-ups that want to save money on specific projects like designing their website or ongoing work like digital marketing.
3. Trade Goods and Services
Another way your start-up can save on costs is by trading goods or services in exchange for work that you need done. For instance, if you need to have a website made, you might offer goods or services in exchange for a website professional’s help developing your website. In order for this to work, both parties have to get something out of the exchange. So it’s important that you carefully consider who you approach with your offer and what you have to provide in exchange. One way to find experts with whom you can trade or barter products or services is by attending local networking events.
4. Use Technology to Automate Your Processes
Are there processes that you find yourself or your employees doing again and again? Perhaps it’s entering leads into your customer relationship management (CRM) system, scheduling social media posts, or sharing different drafts of a document through email. You can reduce time, and thus labor costs, by finding ways to automate these processes with technology.
Innovative technologies and business systems allow us to save money while growing our business. From online payment services to cloud storage, there are a variety of technologies that can help make your business processes faster and easier, allowing you and your employees to focus on core tasks that make your business money.
5. Focus on Free or Inexpensive Marketing Strategies
If you want to bring in new business, you’ve got to have an effective digital marketing strategy in place. While advertising is certainly effective, these costs can add up over time. And if you aren’t an expert in the platform — such as Facebook Ads or Google AdWords — the money you do spend on advertising may not even be getting you a return on your investment.
The solution is to focus on free or inexpensive digital marketing strategies that are proven to work. Blogging, social media, and email are just three ways that you can reach and engage your leads and customers at an affordable rate. Focusing on these inexpensive yet effective marketing tactics allows you to put more money into the digital marketing assets with which you may need professional help, such as your website design or SEO.
Protect Your Business from Unexpected Costs
As you look for ways to cut costs for your start-up, you should also make sure that your business is protected from the unexpected. Workplace injuries and accidents happen all the time, regardless of how hard a company works to support a safe and healthy workplace. And if you don’t have workers’ comp insurance coverage, even the smallest workplace accident could take a huge financial toll on your business.
Be ready to handle a workplace injury or accident with workers’ comp insurance from Cerity. We make it easy to find the insurance solution that’s right for you so you can start protecting your employees and your business. To get started, request a free quote today.