#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.
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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