When starting a business today, going online is certainly one of the best ways to keep your company expenditure to a minimum. With nine out of ten start-ups failing within the first year or even earlier, the lean business model is proving hugely popular, allowing entrepreneurs to get the most for their money when it comes to business development and success.
We’ve listed some of the best strategies used by successful entrepreneurs when it comes to spending less on their online start-up companies:
Online webinar services for business owners and professionals can provide a host of resources for new entrepreneurs to help them build their business and save money at the same time. Webinars can be used for a whole range of different goals, for example improving your marketing outreach by connecting with your audience, boosting your profit by using webinar services to get more sales conversions, and even training new and existing employees with tailored education webinar rooms.
Advisors and Mentors.
With the success rate for online start-ups today still being fairly slim, it’s no surprise that for many new entrepreneurs, one of their important priorities is finding an advisor, consultant or mentor. However, when it comes to pairing up with somebody who’ll be able to offer you some invaluable advice, you might be met with a hefty price tag. Instead, improve your networking skills at the same time, and attend as many conferences, business events and exhibitions that you can – this will enable you to make strong connections in the business world and you could even end up finding somebody who’s willing to offer advice for free.
With outsource partners available to provide almost any kind of work that you will need from content curation to website and app design, knowing when and what to outsource to others can actually help your business to cut early costs. Outsourcing to freelancers in particular can quickly turn fixed costs into variable costs instead, as you will be able to use their services as and when you need them, rather than having to pay an employee a standard wage.
Although many online start-ups will have physical offices and workplaces, one of the best ways to save costs is to work from home and allow your employees to do the same. Depending on the type of projects that you are working on, home-based workforces have never been so successful, largely thanks to innovative cloud computing solutions that allow remote workers to collaborate on a task at the same time, for example, Google Drive, Microsoft OneDrive, or DropBox.
Make Savvy Purchases.
When it comes to buying new materials and equipment for their new business, many entrepreneurs can make the mistake of really going to town. As excited as you are about your new business venture, it can be very easy to get carried away spending money on things such as gadgets, decorations, or even a premium web design service. Instead, during the early stages of your online start-up and indeed throughout your time as a business owner, being more savvy when shopping, for example buying in bulk, looking for second-hand goods or even recycling things that you already own can help you to make some serious savings.
Up Your Invoice Game.
Often, it’s not overspending that puts online start-ups in trouble – it’s invoice problems. If your main source of business income is gained through client invoice payments, then you’ll need to take some vital steps to minimize your risk of not getting paid. For example, sending electronic invoices with clear instructions, good manners and even a small incentive for those who pay as early as possible can help to improve your cash flow. Be sure to have an invoice factoring company and a debt collection agency lined up to quickly deal with any outstanding debts that you might have to collect. Remember, the longer you take to ask your client for the money that they owe, the smaller your chances of getting paid will get.
As a small business owner, you’re probably fully aware of the level of risk that most online start-ups face. By implementing these top tips into your business strategy, you can keep your start-up costs to a minimum and encourage a positive cash flow from the start.