The early days of building your startup are all about trying to grow as leanly as possible, so finding areas where you can cut costs and save a little bit of money is essential to your success. But where exactly does it make sense to cut costs? How can you do so without sacrificing quality?
Below, the members of Young Entrepreneur Council answer these questions and more with their list of eight money-saving hacks they’d recommend to new entrepreneurs. Follow their advice to grow your startup on a budget—and pave the way for your business’s future success.
1. Outsource Non-Core Tasks
One 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 saves on the costs of hiring full-time employees. This worked for me in the early days of my business; however, over time, it made sense to hire full-time employees to fulfill those tasks. – Jared Weitz, United Capital Source Inc.
2. Leverage 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 used to use tools like HubSpot, Asana, Google Analytics and Hootsuite in the beginning to save money. Using free technology 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 worked for me was resource sharing. Think of it as a barter system. Interact 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 avail mutual benefits. This also applies to skills like exchanging your design skills for copywriting. The possibilities are endless. – Stephanie Wells, Formidable Forms
4. Work Remotely
Having employees work remotely can save on office rent and expenses as well as increase productivity and job satisfaction. This 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. It has proven to be a cost-effective and successful approach. – Andrew Saladino, Kitchen Cabinet Kings
5. Track Every Dollar Spent
Remember that you get what you measure. The most important thing you can do to stay lean is to track every dollar spent. Have a budget and look at your expenses with the rest of your leadership team regularly, line by line. This will do two things: prevent surprises and signal to everyone that you’re serious, motivating everyone to look for efficient and creative solutions. – Alex Furman, Performica
6. Use Social Media For Marketing
Leverage free or low-cost marketing channels like social media. It’s an effective way to reach a large audience without breaking the bank. Hustling on social media can help you grow your brand and reach new customers without spending a lot of money. It’s worked for me and it can 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 developing key performance indicators (KPIs) for each employee as early as possible. It’s much easier to figure out what your team is capable of doing when everyone has a list of tasks they need to perform each week. You’ll save money on labor costs and reduce confusion if each 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 to start my own business. – Kelly Richardson, Infobrandz