The early days of building your startup are all about trying to grow as lean as possible, so finding areas where you can cut costs and save some money is crucial to your success. But where exactly does it make sense to cut costs? How can you do this without sacrificing quality?
Below, the members of Council of Young Entrepreneurs answer these questions and more with their list of eight money-saving hacks they recommend to new entrepreneurs. Follow their advice to grow your startup on a budget—and pave the way for future business success.
1. Outsource Non-Core Tasks
A money-saving hack for new entrepreneurs is to outsource non-core tasks to freelancers or virtual assistants. This allows the business to focus on what it does best and save on the costs of hiring full-time employees. It worked for me in the early days of my business; however, over time, it makes sense to hire full-time employees to perform those tasks. – Jared Weitz, Sourced by United Capital Inc.
2. Use Free or Low Cost Tools
There are many free or low-cost tools available online that can help with tasks such as project management, marketing, accounting and customer relationship management. We use tools like HubSpot, Asana, Google Analytics and Hootsuite in the beginning to save money. Using free technology has helped us save money on expensive software licenses, subscriptions and other costs that can add up quickly. – Kazi Mamun, CANSOFT
3. Share Resources With Other Entrepreneurs
One money saving trick that has worked for me is resource sharing. Think of it as a barter system. Connect with other aspiring entrepreneurs and share your resources with them in exchange for theirs. For example, you can share tools or resources you have to maximize mutual benefits. This also applies to skills like exchanging your design skills for copywriting. The possibilities are endless. – Stephanie Wells, Scary Forms
4. Work Remotely
Having employees work remotely can save on office rent and costs as well as increase productivity and job satisfaction. It also allows you to expand your talent pool and not be limited to hiring people in a specific area. My company Kitchen Cabinet Kings started as a remote company and continues to be one to this day. This has proven to be a cost-effective and successful approach. – Andrew Saladino, Kings of Kitchen Cabinets
5. Track Every Dollar Spent
Remember you get what you measure for. The most important thing you can do to stay slim is to track every dollar spent. Have a budget and review your expenses with the rest of your leadership team regularly, line by line. This will do two things: avoid surprises and signal to everyone that you are serious, prompting everyone to look for efficient and creative solutions. – Alex Furman, Performica
6. Use Social Media For Marketing
Use free or low-cost marketing channels like social media. This is an effective way to reach a large audience without breaking the bank. A social media hustle can help you grow your brand and reach new customers without spending a fortune. It worked for me and it may work for you too. Just remember to be consistent and always be on the lookout for new opportunities. – Abhijeet Kaldate, Astra WordPress Theme
7. Develop Clear KPIs For Each Employee
The key to building a lean startup is to develop key performance indicators (KPIs) for each employee as soon as possible. It’s easier to know what your team can do when everyone has a list of tasks they need to do each week. You’ll save money on labor costs and reduce confusion if every employee knows exactly what they need to do to reach their goals. – John Turner, SeedProd LLC
8. Apply For Government Programs
New entrepreneurs can take comfort in knowing that there are government programs and grants available to help support their businesses financially. By researching and applying for these resources, entrepreneurs can receive the funding they need to get their businesses off the ground and on the path to success. This trick helped me start my own business. – Kelly Richardson, Infobrandz