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10 Ways to Make Your Startup More Cost Effective

10 Ways to Make Your Startup More Cost Effective

Getting a startup off the ground does require money, but there are many ways that you can reduce your expenses. Simple adjustments can make you less reliant on loans and investors, and make it easier to turn a profit. In other words, placing an emphasis on becoming more cost effective could ultimately make the difference between success and failure.

1. Consider Outsourcing Infrequent Tasks

Outsourcing has become a dirty word to some people in the business world, but the reality is that it can be necessity for a startup. Instead of outsourcing common tasks, though, the goal is to identify things that do not happen frequently enough to train a staff member how to handle them. For example, if you only put together flyers once a quarter, it may not make sense to employee someone who specializes in designing promotional materials. Outsourcing this task instead can ultimately save you money and provide better results.

2. Cut Utility Expenses

Utility costs are skyrocketing. Because of that, a single business landline can cost up to $100, and even baseline Internet is likely to be at least $70 per month. Although there are some areas where you may be unable to reduce expenses due to a local utility monopoly, you do have the ability to save money on telephone service. Turning to a VoIP business line such as those offered by Nextiva can cut up to 80 percent off of your bill.

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3. Use Telecommuting when Possible

Telecommuting is much more than just a way to please your employees by letting people work from home. Keep in mind that each person who is in the office actually costs you money by requiring more electricity, water and paper products. Therefore, keeping workstations powered down while employees telecommute can be very beneficial.

4. Implement a Four-Day Work Week

A whopping 43 percent of companies are now offering at least some employees the option to work four days a week, and the benefits are staggering. Not only can you shut the entire office down for a day and save on utilities but your workforce will be more creative, happier, and more productive. With all of these perks, it is no wonder that the four-day work week is rapidly gaining popularity.

5. Build a Strong Social Media Presence

Marketing is vital, but you do not necessarily have to budget an exorbitant amount of money to connect with current and potential clients. Social media has drastically altered the way that businesses communicate with consumers, and the Internet has made traditional marketing methods much less viable. Companies report a 54 percent increase in leads from inbound marketing, and this includes free or discounted methods such as tweeting and posting blog entries. Consequently, focusing on your social media presence is one of the best ways to drive traffic to your website without paying for it. Be sure to encourage your customers to write an online review and to check-in if you have a brick and mortar location.

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6. Get Professional Advice

The desire to save money can end up costing you an arm and a leg if you fail to seek out professional advice for certain topics. After all, unless you are a tax or payroll expert, it is highly possible that you will make an expensive mistake. With this in mind, it is recommended to get professional advice about important tasks that you are not well-trained in. Taking on this expense can save you money and time in the future, and it may also help safeguard your company’s reputation.

7. Start with a Soft Opening

Many businesses utilize the so-called soft opening to begin generating sales and interest without investing as much money. This is a wise approach because you will not need to be fully staffed or have a full inventory to test out the market. Another nice perk of a soft opening is that it can help you work out any kinks or employee training issues before a large amount of people are exposed to them. You may also discover that one of your products or services is not as desirable as you thought, which will let you focus less of your inventory and marketing budget on something that is not going to become a big moneymaker.

8. Implement Organizational Tools

A lack of proper organization can be very damaging, and not just because this type of work environment is not conducive to a productive day. If you do not get all of your inventory properly organized, you are much more likely to experience unexpected losses. Unfortunately, a loose setup such as this will also be much more welcoming to a dishonest employee who wants to steal from you. Use storage organizers to keep physical products easily accessible, and be sure to put a good inventory tracking system in place to minimize wasted time and issues with filling orders on a timely basis.

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9. Invest in Employee Training and Morale

Studies have shown time and again that training and workplace morale makes a huge difference in turnover rates and productivity. Each employee who is not properly trained costs a company $5,466 annually on average. Even worse is the fact that their job satisfaction rate will be lower, which can easily lead to turnover. Industry estimates indicate that the process of hiring and training a new employee costs $7,500, so it definitely makes more sense to invest in morale and training improvements. Keeping your current employees educated and happy is one of the best ways to run a more cost-effective startup.

10. Barter and Negotiate when Possible

Many people believe that bartering is dead and negotiating a lower business rate is not possible, but this is definitely a misconception. The reality is that small businesses barter and negotiate all the time. A prime example is that people who provide services such as acupuncture or massage therapy often trade services with another licensed professional. No money exchanges hands, but both parties get something valuable for their time. In order to cut costs, be sure to ask for any applicable bartering options. You can also negotiate contract terms to get the best possible rate.

Placing an emphasis on reducing expenses and becoming more productive will make it easier to transform your startup from the beginning stages into a successful business. Be sure to remain focused on being cost effective even after your profits begin to boom because this will ensure that you always get the most out of your hard work.

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Featured photo credit: 3 Browse more: black, boy, business, designer, desk, home office, homeoffice, iphone, laptop, macbook, man, mobile, office, people, setup, tablet, thinking, work, working Test Drive image Take a look how this image can be used! Man Checking His iPhone & Working at Home Office, by Viktor Hanacek, picjumbo via flic.kr

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Holly Chavez

Writer, Entrepreneur, Small Business Owner

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Last Updated on October 16, 2019

How to Bounce Back Gracefully After Getting Fired

How to Bounce Back Gracefully After Getting Fired

Whether you saw it coming or not, getting fired is a real shock and its impact is daunting. What did you do wrong? What are you supposed to do next? When will you stop feeling so angry?

But there are ways to deal with a layoff.

The most important thing is to remain calm and see it as an opportunity to reflect, change and improve. This is a great time to consider what happened, look again at your needs and desires and start afresh on a stronger, more constructive basis.

Let’s take a look at how you can bounce back gracefully after getting fired.

1. Deal with the Shock of Getting Fired

To lose your job is to lose your identity as a worker and as a person. Debbie Mandel, author of Addicted to Stress, states that 7 out of 10 of us define ourselves by our job titles, since work is where we spend the majority of our time and energy.

Being laid off affronts your sense of self-worth—it implies that you simply are not good enough. It’s no wonder you feel confused and emotional.

The first thing, then, is to take some time to digest what happened and deal with the overflow of sensations. People who quickly recover from the pain of a job loss tend to do two things very well:

First, they accept their feelings of sadness, anger, fear and shame as a part of the natural healing process.

Second, they do their complaining to a friend.

Never call out your boss in the office or on social media. It’s a bad form to speak ill of the company you work for. Stay stylish, and your employer will speak better of you when you need a reference.

2. Stay Away from the Drama Queens

Mass layoffs are, unfortunately, very common. If this is your situation, then you may be surrounded by a lot of angry people, ruminating and lamenting their fate.

“It’s not fair!” they say. “After everything we did for this company! We don’t deserve this!”

You’ve lost your job and that’s tough. But please resist the urge to join in the negativity. Positivity is by far the most important attitude to apply right now. If staying upbeat means you have to limit your exposure to the Negative Nellies, then that’s what you have to do.

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Remember, life is not harder for you than it is for other people on this planet. You live in a democracy, you have freedom of choice and you enjoy a certain material abundance.

Stay positive and focus on what’s going well in your life and the exciting future opportunities available to you. Getting fired is only a temporary setback.

Staying positing could be challenging in a difficult situation, so these tips can help:

10 Questions To Ask Yourself To Stay Positive When Facing Difficulties

3. Take a Break and Let the Dust Settle

Instead of running straight into another job that may not be the right one either, take a short break to recover from the job loss. You need a week or two to de-stress and meditate on the next step.

Be attentive to your need for self-care during this interlude. Everything goes so fast these days that we often do not stop to think or give ourselves the permission to do a little mourning.

Getting fired is a big shock: you need time to refocus and take stock of the new reality. Do not make things harder for yourself!

What you need is to pause a while and do some self reflection:

How Self-Reflection Gives You a Happier and More Successful Life

4. Be Anchored in the Present

Since you no longer have a hold on the past, but have not yet designed your future, try to build yourself up with the present. What do we mean by that?

We mean that right now is the only time you have any control over. Focus on that instead of losing yourself in memories or reliving the awful day you got fired over and over in your head.

Get up at 7 a.m. each day, whatever happens. The body needs rhythm and habits. You will feel much more energized if you keep a consistent routine. Maintain a healthy lifestyle, revisit your budget, play sports, volunteer. Take care of the practical stuff like claiming unemployment. Enjoy the small pleasures of everyday life.

When you’re busy, there’s no room for the inner critic to raise up and derail you. Keep active, and you will gain more of the precious energy you need so much to move forward.

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Try these things to help you live in the moment:

34 Ways To Live in the Moment And Grow in the Moment

5. Understand the “Why”

There are lots of reasons why people are fired. Sometimes the mistake is yours and it’s embarrassing to admit you backed yourself into this corner.

Other times, it’s not your fault. Businesses change direction all the time—maybe yours is going through a major transition or merger and your job is disappearing.

Either way, to give the situation some closure, you need to understand why you were dismissed. What slipped? What could you have done differently? Was your boss really out to get you or did you do something to put your job in jeopardy?

Be honest with yourself. It’s not easy to admit that you might have dropped the ball but it’s the only way to turn the situation into a learning experience. Ask yourself:

What skills do you need to improve?

Is there training you can access, or learning you can do?

In the end, did this job suit you that much? Were you happy there?

Reflecting on these questions can help you put things into perspective. What lessons can you learn to avoid reproducing the same pattern in your next job?

6. Find out If You Were the Right Fit

Hiring decisions ultimately come down to personality. You can study for an interview all you like, but every candidate who is chosen for interview has the right credentials for the job.

The final decision comes down to personality. Who does the recruiter like the best? Who is a better fit for the company culture? That’s the person who strikes it lucky.

Firing decisions are based on personality, too. Slacking off, insubordination and playing fast and loose with the company rules—these are the official reasons why people are getting fired.

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But all of these reasons boil down to one thing: personality. Specifically, they signal a personality clash between an employee and a manager, or an employee’s fit with the company’s culture.

Here’s an example:

Suppose you were fired for “not being a team player.” Some people, namely introverts, lose energy when they are surrounded by other people and gain energy when they are on their own. Forcing an introvert to continuously work on a busy, noisy team without any solitary rest periods means the job is a mission impossible. This employee will never perform at her best.

Or how about the time the Kansas City Star newspaper fired Walt Disney for a perceived lack of imagination? Talk about a clash of personalities![1]

Getting fired can be a signal to turn inward and do some self-reflection so you can better understand your personality and how it might fit in with corporate culture.

In particular, personality assessments based on Isabel Briggs Myers’ sixteen personality types can help you to understand your own work style and how you can find a job and workplace that better match who you truly are.

In many cases, it is totally liberating to realize that all the crap you had to deal with was just down to a clash of work styles and not something you did wrong!

7. Rediscover Your Strengths and Talents

A personality test can also give you clear insights into your strengths, weaknesses, motivations and work potential. Do you have leadership abilities? How do you communicate and manage conflict? What benefits do you add to an organization?

Identifying your working style should be your top priority right now, otherwise you risk accepting a new position that has all the same problems as before. The last thing you want is to reproduce the same old dramas the next time around.

When you become aware of your potential, you will have the confidence to search and find the type of work you love.

For example, getting fired from your banking job may have knocked you sideways. But you have some stellar home decorating skills, and a personality test shows that you are curious, flexible, rational and resilient—all the traits of successful entrepreneurs. Maybe this dismissal is an opportunity to launch the business you’ve always dreamed of but never dared to admit to yourself?

By considering all your special skills and talents, you increase your chances of finding a job you would really enjoy, and not just the one you can do.

8. Get the Word Out

At this point, you should be ready to take action and move forward with your job search. Let’s not sugarcoat the situation: getting a new job is tough. It helps to have a clear idea of the direction you want to go in, a list of all your crossover skills and a freshly polished resume.

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Look around for inspiration. Talk to recruiters in your sector to establish what they consider to be your most valuable skills. Use all the resources at your disposal: job search agencies, headhunters, work coaches, careers websites and so on. These resources can help you match your qualifications to the job requirements and ensure you have the right keywords on your resume.

Don’t hold back on marshaling your networks. Put friends and family to work to pop up leads, and don’t be afraid to ask for referrals. Sometimes the simple act of getting the word out to the people who know you is the surest way to find work fast.

9. Anticipate Questions and Know How to Answer Them

Even if it wasn’t your fault, getting fired can hurt you if you don’t know how to explain why you were let go. You have to be honest here and tell recruiters the truth. Even if a would-be employer does not specifically ask why you left your previous job, it is better to clarify the situation upfront before it comes out in your references.

The best approach is to take your share of responsibility and show that you want to go forward and that you understand the lesson.

For example, suppose you got fired for asking the difficult questions that no one wanted to answer and your candidness set people on edge. Acknowledge that some people perceive your communication style as abrupt and explain how you’re taking steps to increase your diplomacy skills.

A recruiter can be seduced by someone who knows how to evolve and who shows a great energy for personal development.

10. Adapt and Persist

Throughout this journey, you inevitably will go through moments of self-doubt and disappointment. There are undulations in every road, and these are the normal steps for regaining self-confidence after getting fired.

Stay tough! Don’t conclude that your future is hopeless just because the dream job doesn’t land straightaway. You open a positive path when you maintain focus. Have the confidence to know that the perfect job for you is out there.

Remember, you are not alone. Many people walked this road and they would urge you to keep the momentum. Stay open-minded and go where the opportunities take you: it will bring you closer to the job you really want.

Coming Out on Top

While getting fired isn’t the ideal situation, it isn’t the end of the world either. Even if feels like a doozy right now, you will get through it and emerge happier on the other side.

Be clear on what you want, have courage and believe in yourself. In the end, you may decide that getting fired was the best thing that ever happened to you. It can be the catalyst for a powerful, career-fulfilling change.

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Featured photo credit: Jesus Kiteque via unsplash.com

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