Solidifying Startup Opportunities By Cutting Unnecessary Expenses
You should cut expenses wherever possible if you want to solidify your startup opportunities; at least, that’s one of the fourteen tips Entrepreneur.com indicates you should take into account. Where you work is also a big part of saving; so being able to design a cost-effective production space is a considerable option.
Just consider the average cost of renting an office. Do you think you can find any office space requisite to your needs which will cost less than one thousand dollars a month? That’s a five-year cost of $60k, and this estimate doesn’t cover facilities maintenance or inflation. If you’re paying $2k or higher, then you can increase the prospective cost accordingly.
You want to consolidate expenses as much as you can, and to that end, sometimes it makes more sense to build than it does to rent. You can own that which you’ve built, and should things become difficult with the business, you can even sell the property and have additional assets. Additionally, you have some say in location this way.
Granted, there isn’t going to be land available in all the ideal locales of your choice, but if you narrow it down to locations of a cost-effective variety, there’s a big chance you’ll find what you’re looking for.
Once you’ve narrowed down where you can best build your new office, you’ll also want to figure out the costs of internal infrastructure. Payroll, secretarial work, et cetera—there are going to be areas here where you can consolidate resources as well. Cloud computing makes it possible to essentially outsource everything but a handful of jobs.
New Solutions In Office Organization.
If you can outsource all the workers to home offices, then your primary office doesn’t have to be some downtown juggernaut; it can be the size of an apartment or cottage. Certainly such a space would still be expensive if you were renting it, but build it the right way and you can save thousands.
AmericanSteelSpan.com produces metal airplane buildings that require, according to the site, “…no maintenance, as the steel is covered in a special alloy of aluminum and zinc which makes it seven times more rust-resistant than galvanized steel.” Such hangers can be insulated, and need not necessarily store airplanes—though they’re ideal for this.
You can design and install such a prefabricated building on land you own extremely cheaply. Prefab structures run between $10 and $20 per square foot, depending on where you buy and whether you use labor. This means you could get a 1,000 square-foot property for between $10k and $20k.
If insulation, energy, and decoration cost between $10k and $20k, you can have the whole installation bought-and-paid for in less than what you would have paid in rent over five years. At $1k/month, five years of rent comes to $60k. As outlined here, your total expenses are going to be between $20k and $40k.
Should you decide to go the prefabricated route, durable metal buildings in West Virginia can be sourced cost-effectively, and help you save. Look at the available options; it’s likely you’ll find something that fits your business model’s projections.
Being Continuously Prepared.
Your monthly overhead for operations is going to be high, even if you’re a small operation. Cutting this overhead down as much as possible will maintain your business in a proactive way that gives you the latitude to cover unexpected costs.
It doesn’t matter how effectively you design your business model, expenses you didn’t anticipate are going to crop up over time; there’s no way around it. All you can really do is prepare things with in-built elasticity so that when the worst-case scenario manifests, you’re prepared.
Young Upstarts is a business and technology blog that champions new ideas, innovation and entrepreneurship. It focuses on highlighting young people and small businesses, celebrating their vision and role in changing the world with their ideas, products and services.