Startup companies can be risky, and most of them come with relatively high overhead costs to get off the ground. It could take some time before your new business starts turning a profit, so it is important to save money wherever you can during this crucial period. If you’ve decided to get into the tech world, here are a few ways that you might keep your costs down at the beginning of your startup.
Many companies that develop software offer free versions that still have all the basics one might need. If your whole business is based around technology, there are cost-free editions of many software programs out there that can run or automate just about any part of the job you might imagine. Take advantage of software at no charge to you as a way to keep your overhead low.
If you don’t have enough capital to pay for the services your company needs, you may want to consider entering a sort of bartering agreement. In these cases, you could partner with another company to exchange one of your services for one of theirs. You could help a business with their web design, and they could help you with a marketing campaign.
If your tech company provides electronic goods, you’re going to need to ship them out in order to reach as wide a customer base as you can. Shipping is a process that needs to happen all the time for daily or weekly orders. If you need to send out small parts such as industrial washers and similar components used in tech devices, your best bet is to form a strategy around shipping. Tech businesses should cultivate a good relationship with a specific courier. You can try to purchase packaging materials in bulk whenever possible.
You probably know a lot about the tech world, but you’re still just starting out. There are online courses in business that you could take, but these can be costly. If you attend networking events for the industry, you stand a good chance of finding a seasoned mentor in the field. Working with a knowledgeable mentor could provide you with invaluable insights that are just as effective as what you might learn in a classroom setting.
You’re offering products or services, but what your customers really want are solutions to problems. You can sell potential clients on your ideas before you even have goods or services to offer them. This might sound strange, but it’s not all that different from taking pre-orders for something you know is coming later. Identify your key demographic and pitch to them as though you’re ready to solve their issues. This can help bring some interest in and generate sales you can use for development.
Although it can be difficult to maintain profits during the first few years of a startup, these are a few things you can do to stay within the budget you’ve allotted for the business. If you are able to maintain a positive flow of cash, it could make your company more attractive to entities willing to lend you more capital.
Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most of her time hiking, biking, and gardening. For more information, contact Brooke via Facebook at facebook.com/brooke.chaplan or Twitter @BrookeChaplan