There’s no denying that the U.S. small business landscape is highly unpredictable. Bankruptcies in the U.S. increased to 25,227 companies in the second quarter of 2016, from 24,797 companies in the first quarter of 2016, making it more important than ever for startups to be diligent of how they spend and manage their limited funds. That being said, it’s not always easy to figure out how to best allocate and prioritize aspects of small business operation, but there are several ways many startups can cut costs right off the bat. Here are just a few of the most efficient ways startups can cut operation costs.
Chances are, you won’t have the funds to hire a full in-house team of employees, so take advantage of the limitless resources available online that help businesses like yours get their foot in the door. You can hire freelancers for several aspects of your company’s production and everyday operations while saving along the way.
“Full time employees cost a pretty penny these days. Yes, ideally you start to build out your workforce with motivated and loyal employees. However you should use freelancers and independent contractors until you’re stable. Onboarding and training an employee takes time and money. An independent contractor is already an expert in the field and will only charge you for tasks you really need done,” writes Chalmers Brown on Due.
Use the Right Cloud Resources
Next, it’s important to do your research when it comes to choosing the right cloud provider. Pick a provider that meets your business’s small but growing needs. While a study from BitGlass showed that Office 365 has become the number one most used enterprise cloud application, there are plenty of providers that have a unique set of innovative features. When your small business prioritizes communication, you have the potential to save money in other ways, like being able to form a remote team instead of having to rent physical office space.
Speak at Industry-Relevant Events
Finally, remember that face-to-face interaction is critical for startups with other limited means of advertisement. Make sure to make an appearance at any and all events in the area that are related to the products or services your business provides. This technique can have a make a bigger impact on overall marketing than you think.
“If you consider yourself an expert in the field then you should try to impart that knowledge on others. One great way to do so is to volunteer to speak at industry events or conferences. This is a great way to get (free) exposure for both your personal brand and your business,” writes Brown.
Ultimately, there are countless ways to innovate your own path to success in the growing small business world. Don’t hesitate to experiment with different strategies to see which work best for your startup’s needs.