Start-ups generally have lesser funding than big companies which is why they need to be smart and conservative on the financial front. An entrepreneur needs to identify tactics to save money and incorporate them.
Here are a few ways in which you could save money:
1. Hire freelancers and contract based individuals
It is always more expensive to have people on your payroll as you need to pay them even when you have no work. Instead, approach and employ freelancers on a contractual basis who need to be paid only when there’s work. This way you will end up saving a lot of money as the freelancers are equally experienced and good at their profession but you don’t need to pay them every month.
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2. Smarter marketing
On social media, use organic tools instead of the inorganic ones to generate leads. If used well, the organic tools are just as efficient as the inorganic ones. Also, use tactics like email marketing which is practically free to target your audience and send them updates and reminders. Mailchimp and Way2sms are good and free ways in which you can target your audience efficiently and at relatively lower costs.
3. Use smart tracking tools
Use the free tracking tools available online to track your progress. Efficient and precise tools like Google analytics and Adwords (the free version) will give you a clear idea of the current trends and not cost a dime.
Related post: 6 fool-proof marketing methods for startups
4. Get an office space only when you need it
If your start-up is a website based one, you can always function from home as the two things you need are a laptop and good internet. Hire freelancers who work from home too and contact each other via the internet. In this way, you save a lot of money by not renting or buying office space which is very expensive.
5. Use smart methods of communication
What can be done through a call doesn’t need people to meet up and waste money and time? Use free tools like hangouts, Skype, whatsapp, hike, Viber and Facetime to communicate as they cut down on the costs of a normal call. You could also subscribe to family data packs to save more money.
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6. Negotiate where necessary
Negotiation is one way in which you can save a lot of money. If you feel the content writer is charging too much, negotiate and bring it down to an acceptable level. Also, when you feel certain softwares are too expensive, buy the cheaper versions of them from people who already have them. Ask for help whenever you can because aid is usually given for free.
7. Prioritise costs
What most entrepreneurs fail to do is prioritise start-up costs and end up spending on a lot of unnecessary things. Instead, you should focus on what is absolutely important without which the business cannot function and spend only on that. You can later buy things which are less important and can be done without.
For instance, beanbags in the office are a luxury whilst internet connection is a necessity.
We hope this article helps you save a lot of money and use them in places where actually required.
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