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5 ways how small start-ups can curb their expenditures

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5 ways how small start-ups can curb their expenditures

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Are you a newbie in the domain of start-ups or are you still planning to start a new business? No doubt you must’ve read various things on the web on how to proceed further. And everything is well and fine until the dilemma of expense management hits you hard. The real problem is that all the information and facts on ‘how to manage your business expenditures and savings’ goes astray among the other commotion going on around.

Read on to keep this trouble at bay! As per the reports of Nasscom, above 1000 start-ups have boomed recently in our country in different fields such as health technology, edtech, advanced tech, e-commerce, fintech etc. Based on these statistics, India is considered as the world’s 3rd biggest start-up ecosystem.

No matter if you are a newbie or expert promoter; there are ways in which you can affiliate your marketing an achievement such as offering coupons/vouchers & reward/loyalty points to your clients. Coupon websites offer different types of savings to the consumers in the form of some promo codes, discount % or cash back amounts etc. These incentives allure more and more customers to your business and help in its sales and growth.

How can small businesses curb their expenditure?

Turning down the services which are not used by you and the employees would be clearly a straightforward technique. This will lead to the reduction in the electricity bill of your company without any influence on its operations. If you are in an executive office, then PC workstations involve the major energy suck which is totally uncalled for; therefore ensure that all the PCs are shut down after the working hours.

Turn down the desk and overhead lights too, and provide directions to the cleaning and maintenance staff to do so after their work is done. And if you are in a setup involving light industrial services or in restaurants which don’t operate overnight, then keep in mind to turn off the appliances and machinery not needed for storage or safety purpose such as switch off the oven, but not the refrigerator. Once you have developed a habit of sticking to this rule, it’s painfully simple too!

  • Make wise bill payments

Your business undoubtedly must be paying for plenty of basic services – cloud storage, telecommunications, accounting and possibly legal assistance too – via yearly or monthly plans. The least you can do is to keep reviewing these schemes once in every year to decide if the plan is meeting your requirements or not. If you are paying for something which is not in regular use, then you can clearly scale down to a more economical plan without any harm to your start-up.

Conversely, if the expense threshold of an inferior plan is exceeded regularly then you could probably be compensating a lot of money to cross these limits – for example, certain mobile operators charge additionally if you exceed the data plan. Upsizing to a high-capacity and more liberal plan may surely hike your monthly charge, but trust me you would save thousands in the long run. You can even avail the bill payments offers from various online portals to get amazing benefits and combo offers.

  • Focus on employee’s skills

Hiring an employee is not that easy, particularly when you want one with proficient knowledge and in-demand expertise. According to research, substituting a standard employee (not physicians or executives) charges you approximately 20% of the annual income of the employee. There are some studies which indicate that this approximation is old-school. Even if you consider 20% of nominal value, it is a lot of money – you are regarding Rs.15000 in on-boarding and recruitment costs for a working staff earning Rs.75000 per annum. Taking this into consideration, it seems right to do everything you can do to keep hold of your skilful employees, albeit calls for more expense on your part for salaries and bonuses. If doing so retains a potential worker for an additional year in the fold, then an increment in the salary proves to be a good deal.

  • Enhance the marketing strategies

Traditional marketing is really pricey. Generally, small start-ups won’t be affordable for this kind of expense. Comparatively, paid marketing on social marketing is quite cheaper. Also, it requires not as much of funds to produce social media ads. Genuine Social Media interaction is but a kind of word-of-mouth promotion, a potentially strong and cost-efficient type of outreach which primarily outsources sections of your marketing division to your clients. Spoken marketing can be executed in various ways – Brand ambassador programs in colleges which reimburse the youngsters to evangelize on the products of the employers on campus, Referral programs which benefit the existing users if they refer program to new users, social communication platforms like Pinterest, Instagram, Twitter and other social media communities and online feedback directories like Yelp. The ideal word-of-mouth advertising strategy will totally rely on the spectator’s demographic composition, bargaining practices, and reaction to sales and messaging efforts. You can also make your bill payment offers available on the web via marketing so that people make use of coupons and offers and win amazing discounts!

  • Go Green

Complement the electrical appliances and services with some passive power-saving methods which decrease the workloads of lighting & climate control systems and also the carbon footprints. For an instance, you can make use of windows with double pane which proves to be better insulators, economical and long-lasting. Similarly, you can opt for a solar water heater; tight seals on the door frames, air vents and outdoor windows; light-blocking green curtains and blinds etc. Apart from saving water and energy, reducing the paper waste will also be beneficial for the environment and bottom line of your business. These resource-saving measures will help in the conservation of natural resources and also save you more in the long run!

Final Say!

Every business is unique in its own way. For an instance, the travel expenses can’t be reduced if your work doesn’t require travelling around; and likewise, if you work from home, you can’t scale down your office space. Yet it is practically true that there is always some amount of financial fat which can be trimmed in the business ledgers. It perhaps is worthwhile to recheck everything despite your belief that you have picked out all the fruits hanging low. It wouldn’t charge you anything, in fact, would generate a considerable payback with time. Take these things into consideration and find ways to cut down the expenses; grow the bottom line of your business and finally wait for its bloom!

Praneet is the CEO and Editor of the website TeckFly.com. He is a blogger and have varoius blog on various topic and he is from India who loves to read and write about Technology, Gadgets and Gaming. If you share the similar interests then you can follow him on Facebook | Google+ | Twitter

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