Keeping Your Startup Costs Down
When it comes to the global giants we know today, such as Facebook, Uber, and even Google, it’s important to remember that each of those companies was once what a startup. A startup is exactly as it sounds, a company that is just starting up.
While these big players generate billions of dollars of profit now, with operating costs exceeding many small nations’ budgets, when they were just starting out, it was all about keeping costs to a minimum.
If you consider your startup the next Silicon Valley unicorn but are worried about burning through your startup capital before you have had your chance to sign (or be purchased), below are some considerations which can help.
Will it is beneficial to your networking opportunities to be close to the action? Yes! Is your startup at the point where you are regularly liaising with tech giants about relationships, or are you still at the stage where you and your colleagues sit in front of monitors all day and code or work?
If it’s the latter, then the best way to save on costs is to do away with a fancy office. In fact, do away with an office entirely. If possible, look for a house which you and your startup can rent together where you can live and work in the same space.
Even if you are at a place where you are entertaining offers and deals, you still don’t need a fancy office. Instead, look for a very reasonably priced space and use your budget wisely to improve it visually. For example, some flowers from the Groupon Coupons page for 1800 Flowers, a coat of fresh paint, clean carpets, and an organized welcome space is enough for a startup to set-up shop and start welcoming clients/buyers.
On the subject of shiny, it can be tempting to furnish a new startup space with high-end tech, such as refreshed notebooks for the team. While this may be a nice change from the equipment they are currently using, unless the upgrades are necessary for your startup to produce its product in an effective and timely way, then it’s a cost better left for when you are completely up and running or have been bought out.
As impressive as your and your colleague’s talents are, there are going to be times when you all need help. Whether it’s help with producing the product or with the administrative aspects of running a startup. When the time comes, instead of looking professional, look to interns. While you might not expect too much quality from the work of an intern, if your startup is appealing then you will see high-quality interns willing to provide any level of assistance they can just to get into your startup at the ground level. These interns will often work for credit or for lodging and expenses.
If you do take this route, it’s important that you and your startup stay protected. For example, be clear in writing with any interns or help that you hire as to their, if any, stake in the company. This can prevent nightmarish legal concerns down the track which can hinder your startup’s potential.
When it comes to running a startup, there is much that you can do to keep your running costs down, such as the great ideas mentioned in this article.