Most startups experience early lean years before seeing any profit. During this period of time, there’s usually a general lack of resources for daily operations. But if you can use strategies to help your start-up save time and money from the beginning, chances are very good you’ll stay in business.
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Take a look at these 7 strategies to help start-ups save time and money – and why they’re super effective.
1. Use Free Tools For As Long And As Much As You Can
Most new businesses don’t have the capital to invest in expensive programs right away. However, this doesn’t mean you can’t develop a solid business strategy using the free version of valuable tools. During your first year, this will help you not only to focus on growth but on efficiency too. And who can’t afford free?
Many of the free tools available for online businesses will offer you far more benefits than paid tools. But, if you find a helpful tool that doesn’t offer a free option, it still may be wise to purchase it. What’s the best strategy for paying for a tool – pay a recurring monthly fee or a one-time fee?
The one-time fee is the wiser choice when you’re just starting. For example, Shopify offers free eCommerce options. Google Analytics is free and provides great value. Other tools such as Trello and Google Docs provide free versions of their premium services. And email service provider MailChimp has a free version to use while building both your list and business.
2. Gather Business Intelligence
Every entrepreneur needs to use business intelligence (BI) to stay on top of their sales, expenses, cash flow, and other vital metrics. You can track these data points by simply using a spreadsheet, but getting your hands on a BI tool early on is smart.
A reporting dashboard, for example, can help you spot trends and patterns in your business. It can also help you make strategic decisions faster and with less effort. It also helps you save time and improve your overall productivity.
Customer feedback is the most valuable data you can collect as an online business owner. It can provide you with ideas for growth and areas for improvement. Consider conducting a pricing survey to get a general idea of your market. The data you gather will provide insight into pricing your products effectively – to sell more. This can also help you to plan more successful marketing campaigns.
3. Get Creative With Your Marketing
Since most start-ups have a limited budget, every expense is thoroughly examined. It might seem like there are no cost-effective marketing strategies available for a new business without spending thousands of dollars.
In reality, there are many cost-effective marketing options that won’t break the bank. One great example is content marketing. It typically costs 62% less than outbound marketing and generates three times more leads. You can also create events to build your network or join them.
Email is another great option since you can automate the process. Content gating is another excellent, low-cost tactic. This involves convincing readers to provide their email addresses to view your content. It’s a highly effective method when you can email customers who want to hear from you – and buy from your business.
Finding ways to market that are not expensive will increase your chance of staying afloat when things get tough in the first few years.
4. Hire A Freelancer
Hiring and employing a large team early on is a luxury most start-up businesses cannot afford. Instead of hiring several employees, consider hiring a freelancer and saving money on salary, health insurance, and other employee costs.
Hiring freelancers is an excellent strategy for small businesses. It gives them access to qualified, affordable talent. In fact, hiring a freelancer can be 50% to 90% less expensive than hiring a full-time employee.
You can find high-quality, reliable, and affordable freelance workers from several sites. You can hire them for short-term projects or long-term contracts. When interviewing potential freelancers, it’s important to look for the right skill sets. Look for someone who’ll help save you time and money, not slow you down.
Haven’t jumped into entrepreneurship yet? Listen to this episode of The Purpose of Money Podcast to learn how you can get started.
5. Take Advantage of Automation
One of the biggest challenges of running a small business is trying to do everything manually. There’s only so much time in a day, so it’s easy to become overwhelmed. Automating tasks might seem complicated and time-consuming at first. But in the long run, you’ll find you’re saving time, money, and headaches.
Using automation helps save the valuable time you’d otherwise spend completing time-consuming, repetitive tasks. And, with more time on your hands, you can focus on improving other areas of your business and take it to the next level.
First, identify the most routine tasks performed in your business. There are hundreds of automation tools and services available to you to accomplish this. One such tool is Zapier which connects the different apps you’re already using to streamline your workflow.
Also, save time by using social media management tools, such as Hootsuite, to schedule your posts. You can batch create the posts, load them into Hootsuite, and schedule them to post regularly. All of this can be done while you’re working in other areas of your start-up.
Numerous other programs exist like this to help save time, energy, and money for your online business.
6. Take Advantage of Telecommuting
Very few small businesses can afford the luxury of having all employees work under one roof. The monthly cost of providing a brick-and-mortar location can be staggering – way out of most start-ups’ shoestring budgets. But the digital age offers plenty of opportunities for remote work and telecommuting.
A physical location also means a lot of extra tasks and energy. From accounting to customer service, there are thousands of related tasks you must complete daily. But by allowing your employees to work from home, you eliminate the needs for almost all of those types of tasks – and save money on rent, utilities, etc.
Other savings include employee training, office supplies, and many operational costs. Your employees are also freed up from their daily commute. This saves them time and money for gas allowing them to be more productive.
Most employers report a significant increase in productivity and reduction in turnover when their employees are allowed to telecommute.
7. Go Green
Many entrepreneurs are environmentally conscious. They prefer paperless offices, sustainable packaging, and energy-efficient technology. These choices are better for the environment, but they can also save you a lot of money.
Paperless invoicing, for instance, can help you save money. Sending invoices by email is free, allowing you to save money on postage, paper, and printing. Sustainable packing, such as reusable containers is another way to save money. You can reuse them multiple times before disposing of them.
Going green is also a great way to promote your brand. You’d be surprised at how many customers are willing to pay a premium for eco-friendly products and services.
The Bottom Line
There are many ways you can reduce expenses and stay in business as a startup. It might require a little strategizing, sacrifice, and compromise, but it will pay off in the long run. As a business owner, you should always look for ways to save money because it will allow you to improve your bottom line. Instead, invest your money, and time, into growing your empire.
Starting a business can be daunting. There are many challenges, hurdles, and unforeseen obstacles. But the rewards of starting and growing a successful business are well worth the hard work.