6 Smart Ways To Reduce Overhead Startup Costs

In the beginning stages of a business, trimming the costs is not optional: it is often a matter of life and death for startups. You simply cannot afford to drift around aimlessly because smart planning goes a long, long way. It gives you a sense of direction and structures your efforts. Moreover, it feeds your organization with more profit in the long run. So, it is time to bring the spending in check without compromising on product quality, customer service, or operational efficiency. Here are actionable tips on how to make it happen.

#1 Work Out A Plan

Planning ahead of time is the key to minimizing expenditures. Start by putting everything in black and white to get a clear overview of salaries, utilities, insurance, office supplies, marketing, etc. Flesh out the financial section of your business plan and calculate the exact startup costs. Pay close attention to areas that seem inflated and find cost-effective alternatives. Note that you can take advantage of business finance and budgeting apps to get on top of the numbers game. The objective is clear— staying afloat and paving the way to steady growth.

#2 Rethink Standard Office Space

Before you lock yourself in a long lease contract, consider other options. For example, you can work from home for the time being and avoid the bulk of nasty overheads. In this day and age, there is a wide array of collaboration and communication platforms that allow you to coordinate remote workers. And once you outgrow your home office space, you can move to a shared office. In case you manage to find a complementary business, some exciting new opportunities open up as well.

#3 Buy In Bulk

At the first glance, buying smaller quantities of office items such as pens, papers, and stationery may seem like a good idea. Alas, costs quickly add up and melt your budget down the road. You are better off buying in bulk because you can snatch reduced prices and discounts. So, take your time comparing prices and special deals online. For example, recently I browsed through Winc office supplies catalogue in search of fold-back clips, reusable adhesive, staples and markers for my startup office and found out that this vendor was constantly reviewing their prices to offer the best market value to their clients, so if someone found a lower price on any of their items elsewhere, they would match it and take a further 10% off the difference. Whatever you do when it comes to office supplies, make sure you get the quality right to avoid resource waste or storage woes.

#4 Tap Into Business Automation

Marvels of modern technology have changed the business game. Namely, you have a chance to automate a variety of manual and repetitive tasks such as administration, email marketing, payroll, content publishing, and accounting. You basically reduce the strain on workers and eliminate human error. What is more, you save a ton of time and as you may know, time is money. To make the most of this trend, identify tasks where it can add value and select the right tools that fit your budget and business needs.

#5 Smart Hiring Policy

Having top-notch experts on payroll can blow the budget in no time. Fortunately, there is another approach— hiring freelancers. Yes, you lose direct oversight, but you do not have to worry about office space, equipment, full-time salaries, employee benefits, paid leaves, etc. When you do hire full-time, make it count. Formulate a solid policy and prepare for interviews well. See to it that candidates fit your startup culture and relate to your mission and values. Avoid the unpleasant costs of rehiring.

#6 Shape Up Or Ship Out

Cash flow is the lifeline of any business and running dry is its greatest bane. No, you cannot avoid incurring overheads and hiccups altogether, but you can do your best to optimize them. So, come up with a financial plan as sound as a dollar. Run the numbers and prevent the expenditures from spiraling out of control. Automate and streamline business processes to gain an edge and hire frugally. You should be able to propel your organization forward and make strides towards your goals.

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