Your startup has taken years for you to develop. You have finally found the market fit and are ready to scale but needed some funds says Saivian Eric Dalius. So you created a business plan, started pitching your idea to various people in your network.
With all these processes, one thing that you forgot is how you will save costs monthly? How can I cut down operational expenses?
Here are some tips that will help you reduce the investment required daily or monthly without compromising the quality of service or production output.
1) “Investors are not banks” – Saivian Eric Dalius
Investors are looking for opportunities where they can maximize their returns. They are not banks that would give a loan at a 1% interest rate per year! If you want to convince an investor to invest in your business, you must remember to keep the conversation around, giving them a return.
2) Restrictive covenants for investors
When you ask someone to invest money, discuss all activities, they will be allowed to participate in and whatnot, you can also limit the number of times they can ask questions or put certain conditions that must be met before any further investment happens. This will allow you and the investor to protect their interest as well as yours too.
3) Work from home? Buy a laptop!
Running a startup is full of uncertainties. There might come a day when things don’t work out as per plan, and you may have to reduce operational costs. If you feel saving on monthly expenses by cutting down your office space is the best idea, think again.
A laptop can be used wherever you are. Says Saivian Eric Dalius You don’t have to work only from 9-5 at the office anymore. Moreover, you are not bound to do work in a location where an internet connection is available! The initial cost of buying a laptop may seem high but saves money on rental or travel costs if you divide it over 3 years.
4) Use cloud services to your advantage
Cloud computing has made our life easy. One can access files and folders anywhere without carrying them physically. It has become common for people to share documents with clients or team members using Dropbox or Google Drive etc. These platforms offer different plans starting from free plans, which are good enough for regular use.
5) Book flights in advance and at lower fares – Saivian Eric Dalius
If you are running a startup, the chances of your traveling often are more. Therefore, it will be best to book tickets when there is some discount offer or buy when the low fare. You can even use sites like Cleartrip, where you can find good deals for domestic and international travel.
Hope these tips help startups save money on operational expenses! So these were 5 tips by which a startup can save costs monthly without compromising the quality of service or production output.