As a new start-up company, the odds are unfortunately stacked against you. Times are tough, and starting a new business, no matter the industry, is extremely challenging. According to statistics from Harvard Business School about 75% of all venture-backed start-ups end up failing. That is a rather somber number, and the failures can be attributed to all kinds of things. Of course, the top of the list for why new businesses is fail is that they either don’t have enough cash to get started, or they run out of cash too fast.
So as a new start-up yourself, how can you increase the odds of success and try to eliminate failure? One tip is to look for creative ways to save money in the business, without jeopardizing the products or services you offer. Here’s a look at a few ways you could be saving money right now, and helping the bottom line of your business.
Go Digital – Cut Down on Paper Costs.
This tip almost seems too simple to be true, but did you know that by digitizing records and documents, thereby cutting down your paper costs, you could be saving a fair amount of cash? According to Canvas.com it is estimated that by the time you pay for the paper, store it, print or copy on it, and then pay for postage on it if sending out documents, that same paper ends up costing about 30 times its original price tag. That single sheet of paper that may have been $0.05 suddenly costs $1.50 per sheet. That adds up extremely fast.
There is also another benefit to going paperless, and that’s the environmental benefit. This is something you can use in your marketing plan since so many consumers are looking to do business with environmentally-conscious companies nowadays.
Don’t Shy Away from Purchasing Used.
As you set-up your new office space you’ll need to fill it with office equipment, furniture, storage solutions, and more. Rather than buying everything brand new and spending a small fortune, you can look into buying gently used items. Again it seems like a small thing to do but the savings add up. You’ll also be surprised at the quality of stuff you can find at a heavily discounted price just because it is used.
Let Energy Savings Pile Up.
Again this is both a cost-savings and a benefit for the environment. Look for ways you can cut energy usage by installing LED lights, putting lights on timers or motion sensors, turning down the building’s heat or a/c by one or two degrees, and using equipment that is energy-star rated.
Hire Only Who You Need.
Rather than going on a hiring spree, it’s best to hire only key staff that you need at this exact moment. You can expand and hire as needed, but in the initial stages you basically want to be running with a skeleton crew. At the same time, you need to be sure that your staff isn’t so small that you are missing deadlines and orders.
When it comes to savings, every tiny bit counts, thereby giving your start-up that much better a chance of surviving.