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Saving Money

5 Money saving lessons for small businesses

5 Money saving lessons for small businesses
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Startups are growing steadily in the country. However, every startup needs funds to survive. Pursuing investors aggressively can bring in the required funds but not using them wisely can spell disaster. Recently, we heard about a startup where the founders were held hostage for a very long time until the police intervened.

Inspite of the fact that a startup may have ample funds, wasting it will be catastrophic for the future. Starting in a small but well-planned way is always good.  If the new organization proceeds in the right way, cost-cutting will also be healthy. Let us explore few ways in which a small business or startup can save money:

Power of reaching out through the online space

Hiring freelancers for your projects can help you save a lot of money. There are various websites like Odesk.com, www.peopleperhour.com and www.elance.com that have quality freelancers who can help you to finish your tasks according to deadline and in the required way. Groups on social networking sites can be a constructive way to connect to your target base.

Furthermore, technology has advanced to such a level that work can be done online and accessed from anywhere. Therefore, being flexible about people working from home can motivate employees to work as per their convenience yet give the best. Even virtual assistants and online accountancy tools are available nowadays.

Use your own networking skills

Recruiting the right talent is never an easy job.  However, instead of paying extra salary to a HR professional, a founder can always use his own contacts to hire the right people. Hiring on the basis of feedback can also be beneficial as the capability of the person is already known beforehand.

Even for getting economical office equipments and discounts while organizing conferences & events in a particular business club or hotel, a new startup can save money by partnering with them. Local university, college, student sites and intern sites can aid in finding the right talent too.

Refrain from unnecessary hiring

New organizations start splurging as soon as they raise funds and hire a huge number of employees. After a few months, they realize that some people are not needed which leads to firing and spoiling the image of the company.

In a startup, a single person takes on many roles as per the requirement. Encourage that environment in a positive way instead of ‘hiring and firing’ because later when you will genuinely need people for specific tasks, getting suitable and experienced people will be difficult.

Find customers online

Reaching out to customers via online marketspace is relatively easy now with technology— sharing your products or services on different portals can increase your business value too. Plan for attractive ways to allure your customer base. This will help in making the presence felt in your particular domain. Moreover, it will be a cost-effective way to pull in more clients.

Keep the communication channel open

Communicating with customers is valuable and necessary for a new business house because it aids in building trust in clients by stressing on the fact that the business house takes feedback seriously and values each customer.

Unicorn startups like Flipkart’s founders have even turned to delivering goods themselves to re-connect with their customers. Innovative ways like this definitely attract positive attention. Furthermore, Twitter and Facebook can be great mediums to connect, explore and know what a customer really wants. Use services like HootSuite, Twellow and Tweet Reach to engage with Twitter influencers and gather followers.

There are many ways to save money. The only thing that matters is how a startup does the cost-cutting. Getting rid of people will not help in saving money as much as judicious spending on advertisements, business-related things can. Every business is different; a well-structured plan will go a long way.

Edition: October 2016

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