#3 Effective Ideas for Start-ups to Save Business Costs If you have a tight budget, always know the difference between necessary and pointless spends.

By Nidhi Singh

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

graphicstock

Starting and running a business on your own is a risky affair. It requires a lot of hard work, dedication, creativity and sound planning. Also, one needs is a decent amount of cash flow to run the company. The more cash you will save, the easier will be your initial entrepreneurial journey. If you have a tight budget, always know the difference between necessary and pointless spends. Also, keep a track of all expenses and cut down wherever and whenever required.

Entrepreneur India lists down a few lucrative ways for startups to cut costs in the beginning.

Hiring Done Right

Nalini Jindal, Chief Investment Advisor, Intellistocks feels there are no simple ways to cut costs. A startup requires employees with a specific skill set and a lot depends on each and everyone's performance. A bad hire costs a company approximately 6 months of time, recruitment cost, payouts etc.

Jindal emphasized that hiring and assigning responsibilities with the right skill set helps achieve efficiency in work, keeps the employee happy and keeps attrition rate to the minimum which is very important for a startup.

She further added that as a startup, narrowing the business focus to the more revenue generating and efficient projects rather than taking up too many projects/customers at once is a good idea. So, one must do a cost-benefit analysis and reduce the opportunity costs.

"This way one can be more productive and produce high-quality work thus generating more revenue," added Jindal.

Pay Your Employees More

Gagan Kapur, Co-Founder & CEO, EasyBuyHealth recommends to save cost, startups must pay people better and hire experienced professionals.

"It will help you reduce the learning curve and avoid costly mistakes. Pay them more, and expect more from them, which means no need to hire unnecessary junior resources. Secondly, follow the principle of hire fast, fire fast, which means reward the good people, remove the bad people," shared Kapur.

Make Most Out of Networking Events

Bhavik Mehta, Director FinREQ believes cost or expense is a key issue for any startup that can determine whether it will be able to survive a market or not.

"The good news is, if you master the art of trimming expenses early in the game, you'll develop good habits that'll serve you well as your company grows. Word-of-mouth is the best and cheapest form of advertising, but that means a lot of networking. Attend business and community events to talk about your company, and don't forget to focus on your most desirable customers. You can develop the art of becoming a good speaker," said Mehta

Nidhi Singh

Former Correspondent, Entrepreneur Asia-Pacific

A self confessed Bollywood Lover, Travel junkie and Food Evangelist.I like travelling and I believe it is very important to take ones mind off the daily monotony .

Living

The 3 Lifestyle Habits That Made Me Sharper, Stronger and More Successful

These three simple yet powerful lifestyle changes transformed my productivity, energy and mindset. Here's how you can do the same.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Science & Technology

How Can Marketers Use ChatGPT? Here Are the Top 11 Uses.

With the recent developments in AI and the popularity of ChatGPT, you may want to integrate AI into your marketing practices. Find out how.

Marketing

5 Ways ChatGPT Will Impact Digital Marketing

ChatGPT is creating ripples across the digital landscape right now. Here are five ways it can benefit your ads, campaigns and marketing strategies.

Science & Technology

The Deepfake Threat is Real. Here Are 3 Ways to Protect Your Business

The rising use of deepfakes is a growing threat to businesses and society as technology advances. Here are three tips for companies to combat this threat.

News and Trends

Kolkata-Based Lab-Grown Diamond Brand Jewelbox Secures USD 3.2 Mn

The startup will primarily use the funds to expand its retail footprint, growing from eight stores to 30 locations by the end of this year.