You’re likely already familiar with the depressing fact that 90% of startups fail. And while the exact reason for this statistic simply can’t be determined, a lack of financing is one of the main contributing factors. Considering this fact, smart entrepreneurs aim to cut corners and save pennies wherever they can during the developing stages in order to ensure success and prosperity in the long run. Here is how your startup could do the same:
Consider running a mobile office
Instead of wasting money on costly office spaces and utilities in the early stages of development, consider running a mobile office that allows all employees to work remotely. Using cheap or free software solutions, operating from the cloud, and communicating on a regular basis is a significantly more economical option that might even lessen the financial strains of your workers as well. Mobile offices are particularly popular among women with startups at the moment, as they allow for the perfect balance between professional, personal, and family lives, and they might help you in a similar manner as well.
Think about a BYOD environment
BYOD or Bring Your Own Device is a rising trend among startups all around the world, and for a great reason. When you don’t have to invest in a number of new computers, smartphones, and other necessary equipment, not only will you significantly reduce your expenses, but you could further facilitate mobile offices as well. As many professionals prefer the comfort and familiarity of their personal devices, a BYOD environment can also lead to an increase in employee productivity, efficiency, and satisfaction. This might even be an ideal solution for those attempting to build a business while in college, as they likely don’t have the means needed for equipping a traditional office.
Find a great financing solution
When launching a startup, most entrepreneurs can truly use all the capital they can get. But as small business loans are an expensive option and good investors are difficult to find, startups might need more creative solutions. In those instances, deciding on a convenient debtor finance solution can be a brilliant idea. By giving you access to necessary funds without the need for personal security, this financing option will give you the opportunity to pay most of your outstanding invoices, track and manage your supply chain, and even relieve cash flow strain, thus empowering you to grow and develop your business.
Use free tools whenever possible
As a startup, you will have more freedom to use different tools and resources bigger companies simply can’t justify. For that reason, it’s recommended to solve as many business problems as you can using free, readily available solutions as long as it makes realistic sense. For example, you can use tools like Venmo to receive payments for products and services or pay some of your suppliers and partners, if possible. While this option is not an ideal business practice, and it may not work for all startups, it is a great solution for those who need some extra help to get off the ground.
Ask for perks from large companies
Many large companies will have certain tools, programs, and benefits specifically designed for helping startups to kick off. For instance, most small businesses are able to get startup credits for Google Cloud and Amazon Web Services, along with a number of financial benefits from their banks. If you wish, you could ask such companies for similar perks as well, or you could even talk to your investors, if you have any, and ask them whether their connections can also bring you some additional benefits.
Launching a startup is never an easy task, especially when facing financial challenges. But just by taking a more frugal yet creative approach, you could save some money in the process and create new opportunities for business growth and success.