“When money realizes that it is in good hands, it wants to stay and multiply in those hands.” ― Idowu Koyenikan
Small businesses and startups have been changing technology and the lives of people. They create opportunities for individuals to follow their passion, be their own bosses, and build an empire that can thrive in the future. However, with business comes expenses, and the most difficult thing startups deal with is saving money and lowering their expenses.
Starting with a constrained budget and limited access to capital, most startups who find investors go on a spending spree, hoping that their ideas will thrive. However, neglecting the cost-cutting programs they can incorporate, they are brought down in no time while their productivity yields a negative return.
In order to realize profit, generate revenues, and stay efficient, startups need to learn how to manage their expenses. Here we list the top 10 ways startups can reduce their expense in 2016.Advertising
1. Try cloudsourcing
Several studies have shown that startups that do their own hiring spend more than those who outsource their work. Reports say that it costs around $4,000 to find and hire a new employee, and the time and money spent on training, vacation, and insurance costs way more.
Many small businesses and startups who want to optimize their budget need to start cloudsouring their work to compete with others. The process involves hiring qualified professionals who work remotely and even at a cheaper salary compared to traditional employees. You can find people on platforms like Elance, Freelancer, and Upwork according to your need and you don’t even need to have them on a full-time payroll.
2. Lease what you need
Startups and small businesses often tend to spend more on office needs. However, leasing all the items that are necessary can save a lot of money. Items including factory equipment, computers, desks, and tables can be found on lease at several marketplaces.
3. Hire interns
You might not find a suitable cloud worker or you might require someone who is available when you need them right in front of you. In that case, you can call your local college or business trade school and see if there are students looking to work as interns. Many college students, despite having the qualifications, aren’t able to find an internship. This is where you can get your job done while also helping them to fulfill their school credits.Advertising
4. Go inexpensive, but not cheap
Many entrepreneurs and small business owners spend a lot of money on services like marketing, web design, and software development — and end up regretting it later. There are countless numbers of tools that are cost effective and handy for business owners looking to save their money.
Tools like Moto CMS help you create a great-looking website, and using BaseCamp and Trello to manage employees can help you cut down on your expenses by a lot.
“Free tools can be a bad idea — they’re free for a reason,” says Raad Mobrem, CEO and co-founder of Lettuce Apps. Try finding items that can get your job done and won’t cost you more in the long run.
5. Try new advertising
Advertising is a must for any kind of small business or startup today. From connecting with people to finding customers, advertising plays a big role in success. However, if you depend on traditional advertising forms, including print, television, or radio, the budget is surely going to rise.Advertising
To stay on budget and cut a lot of money, you need to take time and invest on digital media. You can start a blog and start promoting it through social media. Opening up a page on Facebook and Twitter is not going to cost you anything and this will cut your advertising expense completely.
6. Shop around for insurance
Startups need to minimize their insurance costs, especially during the renewal time, as this can eat up a lot of your budget. Start with finding and comparing insurance policies, and if you don’t have time, seek out an independent agent or a good lawyer who can help you with your insurance needs. They are not financially bound to any company and they can help you find great rates based on your needs.
7. Don’t buy in bulk
You read that right. What most businesses and startups do is buy office supplies in bulk, thinking that it’ll help them lower the cost. However, imagine buying a thousand markers — is that really necessary? With several online shopping and e-commerce sites on the web, startups can get confused about what exactly they need. Searchub, an innovative e-commerce platform that uses machine learning algorithms, offers users a truly personalized shopping experience.
Well, your cost per marker is surely going to be less when you buy it in bulk, but will you ever use a thousand markers? You’ll either lose them or they’ll dry out before you even start using them. Spend for the time being and avoid getting things you don’t require immediately.Advertising
8. Cut financial charges
Many small business and startup owners spend thousands of dollars on expenses that are not essential at all. For example, think of the cost that can come with late payments on loans, membership fees on business credit cards, and processing fees. You need to stay on top of your bills and pay them right when they are due. Seek online payment services if you find balancing your personal checkbook difficult.
9. Evaluate and re-evaluate
Take a pen and a paper and write down everything you require to build your startup. From office supplies to furniture, employees, internet, insurance plans, electricity, communication costs — everything. Evaluate your needs and look out for options. For example, you can save the money needed for paper if you use your computer to store your information. Also, choose free plans like Skype and Gmail to communicate. Rethink your needs and see if there are any ways you can cut your costs.
10. Don’t waste time
When you are in business and working with startups, you seriously need to understand the value of time. As an entrepreneur or a small business owner, you put in a lot of hours, and if you waste your time, it can cut your sales and hurt your business. The more you manage yourself, the more effectively your business will run. Stop procrastinating from day one and get on the right track to save a lot of your expenses.
Featured photo credit: stevepb via pixabay.com
Last Updated on January 21, 2020
How to Develop a Millionaire Mindset in 6 Simple Steps
We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?
It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.
How do you go about developing that millionaire mindset? By following these simple steps:
1. Focus On What You Want – And Take It!
So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.
Millionaires play to win, not to avoid defeat.
This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!
2. Become Goal-Orientated
It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.
Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.
Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.
Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.
You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.
If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?
If you are to become a millionaire, you need to start accumulating money.
Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life
3. Don’t Spend Your Money – Invest It
The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.
Stop working for your money and make your money work for you.
Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.
There’s not just the stock market — there’s also property, and your own education.
4. Never Stop Learning
The best thing you can invest in is yourself.
Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.
Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?
Learn everything you can about how economics works, how the stocks markets work, how they trend.
Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.
Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You
5. Think Big
While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.
There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.
Aim for the stars, if you fail you’ll still be over the moon.
6. Enjoy the Attention
To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.
Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.
If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.
Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.
More About Thinking Smart
- 20 Things Smart People Don’t Do (And What They Do Instead)
- 15 Inspiring Ideas to Boost Your Motivation for Success
- How Millionaires Manage Their Money Differently?
- 5 Ways to Cultivate a Growth Mindset for Self Improvement
Featured photo credit: Austin Distel via unsplash.com