Tight startup budgets require strategic spending. Here are some tips to help your business spend smart and cut the cost:
Do it yourself marketing
The Internet makes it easier than ever to market your products and services on a budget. Blogs are great because they can help boost your search engine rank (SEO) and build the credibility of your site. Blogs with many posts show there is lot of effort being put into the company. New businesses with websites that only have a few pages look skimpy and underdeveloped. A substantial website is a credibility booster.
Social media is another great way to take care of marketing on a budget. It can help attract new business by having existing clients share your products in their network. Social media can also encourage repeat business with existing clients by letting them know about the new things your company is up to.
Businesses with operation in the US and Europe will be stuck paying their employees high salaries. New businesses should carefully consider what work needs to be done on location and what business can be managed from outsourced employees. Managers who are effective at eliciting good performance from off site employees can help save companies a lot of money, without sacrificing the quality of the work product.
Control inventory costs
Startups do not need to have a lot of money invested in inventory. Quite often those resources would be better used on employees or marketing. One of the best ways to not tie up capital in inventory is by finding vendors who can drop ship products for you. This can help a company stay lean and not bogged down with the logistics of storing and shipping products.
Save on overhead
Many businesses get enamored of fancy offices. The truth is most of that money would be better used in other aspects of the business. If an expense can not help boost your bottom line try to cut it to the bone. Spend money cultivating profit centers, invest the bare minimum on cost centers.
Ever since the Great Recession hit in 2008 many young and talented people have had a hard time finding good jobs. These young adults will often work for little or no money in order to get experience before moving on to a more lucrative position. Finding talented interns can really help startups keep their operating expenses down. Remember though, that you have an obligation not to exploit them, but provide experiences that will further their professional aspirations. This can be a great, mutually advantageous win-win arrangement!
These tips will hopefully make it easier for you to make your startup a success. Remember…there is always time to spend money…later.