A handful of money – this is something really important to survive the living in the present condition of the world. If a person has a good amount of cash in his pocket, he can probably fulfill your dreams in no time. At least that’s what satisfies a materialistic individual. Everything, good or bad, can be dealt with the support of money, to some extent. Nowadays, youth is so passionate about earning a good lifestyle, that they come up with amazingly innovative ideas.
- During the initial
stages of a startup, there is an essential need to hire the best team for a
perfect start, but it’s not an easy task. Hiring employees can be quite costly
for the entrepreneur, as he/she might spend money on the employee’s training,
insurance, and many such formalities, which will also consume a lot of time.
Cloud-sourcing can be helpful. Professionals can be hired, for a limited time,
but with a guarantee of provision of decent piece of work. Or the other
suitable option is to bring in interns. That’s where the money can be saved,
along with training the intern according to entrepreneur’s requirements.
- Every startup/business
requires certain software's. Internet is very vast, and it can provide almost
everything that one needs. Same is the case with software's. Instead of disbursing
cash on software's, it is better to look for the necessary program, online,
first.
- The inventory should not be filled with items bought in bulk. It may seem like a way of cost reduction on per piece, but spending money on items that might not get used, is a waste. Instead, only the useful things must be bought, which are actually needed. Moreover, when it comes to shopping for the small business, visiting top sellers and asking them for a discount can be beneficial. Many top sellers provide discounts to small business owners, and sometimes they can also offer things at whole sale rate.
- Saving money, as well
as time, is vital for a successful startup. Often small business owners
misspend money on paying finance charges, like late payments of loans, or
credit card processing fees. It is crucial to stay active in this domain, and
clear all the payments in time. Along with this, time must be wisely dealt
with, as it can have a positive effect on cost reduction in the longer run.
Effective time management techniques can be used.
- Spending money on items, like paper, must be avoided. The wonderful inventions of electronic file storage sources have been done to make the environment greener. It provides a better backup, as well as a less time-consuming way. All the money invested in buying papers, printers, and printer inks, can be a part of savings. Also purchasing energy-efficient appliances is a favorable idea. The initial cost might be higher, but they will work for longer, will save energy, which will result into lesser utility bills, and also the initial cost will be recovered in some time.
- Using free digital media like, Facebook and Twitter, to do the advertising can be advantageous, instead of going for television and radio advertising, and print-outs, which will give a rapid rise to the advertising budget. Bartering is also a worth trying choice. Small business owners usually work together by exchanging their requirements, i.e. they provide each other what they need, and this helps both of them lower their expenses. There are various online sites that offer bartering opportunities.
- Depending on the security of startup and considering all kinds of risks, the office space can be shared with another business. It can divide the rent of the office space.
These
are few tips that can help the entrepreneur in cutting off money, and at some
point, all these considerations are what will add up to the profits of his/her
business.
CA Hemant Gupta
hemant@neusourceindia.com
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