No matter what, no one would like to engage in wasteful and unnecessary expenses while starting or growing a business.
Hence, we are taking a study into some of those areas needed to be blocked to prevent or at least reduce these leakages.
Mentors and Advisors
Instead of paying for advice on legal, accounting, funding, or other key business issues.
We can use the brain trust of mentors and advisors for advice, feedback, and meeting other important decisions and contacts.
Engage members of team that will work often, based on agreement, for equity (profit sharing), commission, or deferred payments rather than initial salaries to bring down costs.
The right supplies can save you a great deal of time and money.
Therefore, you can have an arrangement for supply of high-quality materials, on- time delivery and allow for extended payment terms like thirty to ninety (1 to 2months) days of trade credits.
Partnering with some of your reliable and trusted customers during launching of the business is an excellent cost saving strategy.
Select a few key customers and offer them deals they cannot refuse, such as;
– Discount pricing
– Special Packaging
– Strong Support etc
In exchange for these, ask for long term commitment to purchase or patronise your products or services.
And whenever possible, get them pay early – ideally, even before you deliver the goods.
You can find outsourcing partners such as NetBet to provide just about any product or service you need.
Outsourcing turns what would normally be a fixed cost into a variable cost because you only use the service when you need it, and you will have time to do other important things.
Work Virtually (New Normal)
You can work just about anywhere, from home, in your car, in a hotel room.
By working virtually through the aid of technology and allowing your employees to do the same will cut down the expense of establishing or running an office.
Borrow, Rent, Buy Used
Find ways to use other people resources in addition to your own. Whenever possible, borrow rather than rent, rent rather than buy, and buy used rather than new.
Look out for bankruptcy, auction sales to see if you can find what you need at low cost.
Use Free Software, Applications, Internet
Free and inexpensive software programs is online that can help you manage your finances, plan your projects, track your customers and much more.
You can take advantage of free trial periods (30days or more) of this software to determine if you really need it or not.
Utilise effectively the internet to market your products or services to the word via pop up shops, social media like Facebook, WhatsApp, Instagram etc.
Minimise Your Expenses
Keep your personal expenses to a minimum when launching your new venture. This is not the time to buy a new house or a car or take a personal debt.
The longer you can live with minimum expenses, the better off you will be.
Likewise, do not take on any ongoing business expenses unless they are absolutely necessary.
Sell, Sell, Sell
In start-up companies, everyone is in the business of selling. All your team members need to talk about your company, promote your products and assume responsibility for producing revenue.
Remember low costs and early Cash flow are critical to successful business venture.