About 90% of all startups fail within the first five years. A significant reason for this is their failure to save money, and as a result, they go bankrupt in no time. It is not easy to start a business, especially when it is your first. If you plan on starting one, or already have a startup, then you have landed on the right page.
Given below are some money saving tips for today’s startups:
Purchase Used Items
The best way to save some bucks is to go for used, second-hand items. You can visit a store or just shop online from websites like Amazon and eBay. According to reports, you can save up to 40% by shopping used items online. However, be careful about what you pick.
Never compromise on quality and always buy items that are durable. And if possible, pick things that offer at least checking the warranty.
Trade or Barter
Trading of inventory, goods or services with other businesses can be of great help, especially when you are just setting foot in the industry. This can open the new door of opportunities for you. Therefore, do not shy away from trading with other businesses. If you have what they need, you can give it away for what you need. It is a win-win situation for everyone involved.
Find Free Software
Do not run after expensive software, especially in the beginning. Many businesses make the mistake of investing in software that they do not need. Always try what works for you and then make a purchase. This is what trials are for.
Also, there is no need to spend money on software unless really required. This may be a small expense, but you need to reduce even the smallest of expenses to make a difference.
Outsource Your Work
A new concept in the industrial mindset is ‘doing only what you do the best and outsourcing the rest’. Not only startups, but even big companies seem to be following this mantra. In fact, Nike, a famous name in the shoe industry, does not manufacture its own products, rather it has outsourced manufacturing to other reliable names.
Look At Hiring Freelancers
Bid adieu to full-time employees and turn to freelancers if you really want to save money.
There are several benefits of hiring freelancers. They are more affordable than full-time employees and are also very readily available. Moreover, you do not have to find space to accommodate employees as freelancers can work from their own space, helping you save amount on electricity and other utilities as well.
Get Rid of Middlemen
Get rid of go-betweens and buy all the products directly. It may be difficult in the beginning, but eventually, you will make contacts and be able to save money you would spend on commissions.
Almost all businesses can run virtually. Just get a website and start taking orders. However, if you need physical space, make sure to find an office that is affordable. This is it. Keep these simple tips in mind and save money to increase the chances of finding success.
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