5 Ways To Save Money On Your Startup

ways to save money on startup business lean startups budget

A vast majority of startups undergo lean periods and boom phases till a certain degree of sustainability is secured. Whether or not your startup has raised some seed capital, expenditure must be stringently controlled and every avenue to save money should be explored. Here are some of the most effective ways to save money on your startup. 

5 Surefire Ways To Save Money As A Startup 

Explore every free or complimentary resource available. This is not limited to tools, such as software and hardware. Human resources should be included in this strategy. There are professionals, interns and aspirants who want to acquire some reasonable experience in different niches. Such people can be enrolled to work part-time, fulltime, contractually or as freelancers. Many software applications have free versions. Such lite or limited features versions may not be fully utilitarian, but they can get many jobs done. The last thing a startup should do is spend money on custom solutions, whether software or hardware. All such investments can wait till there is sustained growth, and financial viability of the entire enterprise. 

Consider sharing everything that you can. Startups can do well with shared hosting. Dedicated hosting is unnecessary; unless there is a serious security threat or the intellectual property is made vulnerable in some way. Shared workspaces can be appropriate for most startups. It would be even better for startups to carve out a small workspace in the office of their initial investors. This not only saves money, but also boosts the bonding of the founders and the investors. 

Keep looking for discounts. There are companies offering special discounts to different types of startups. If your startup has raised some seed money or secured a subsequent round of funding by a company that has a substantial portfolio, then those subsidiaries or the parent corporation can make their products and services available at a significant discount for your startup. One has to reach out to the right executives in such cases. Not every portfolio company of a venture capital firm would be updated about all developments, so the relevant executives may not even be aware of your startup getting bankrolled. 

There are many types of programs that are aimed at assisting startups. Take two popular examples, Google Cloud credits for startups and Amazon Web Services. Both these are precious resources that almost every startup would benefit from. There are other such opportunities, for instance banking benefits. A few banks have special features for startups, and these can be financially beneficial. 

Test everything before you commit to spend. Take marketing as an example. It is not uncommon for entrepreneurs to embark on a spending spree after raising some funds. Usually, such expenditure is towards marketing. Quick online advertisements, digital ad networks and social media marketing are tempting for startups. However, spending money on such online advertising does not guarantee robust growth or financial sustainability in the short or medium term. All marketing tactics should be tested before a significant sum of money is spent or pledged. 

“A Cent Saved is A Cent Earned” 

This adage is a universal truth, more significant for lean startups than corporations that already have a stockpile of cash and a huge market cap.

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