When business owners are just getting their startups off the ground, it makes sense to cut costs whenever possible—and maximize the benefits of existing paid services to glean their optimum impact on company growth.
Cutting any and all unnecessary overhead allows you to keep more money in the bank, which may be the very thing you need to keep your business alive when cash flow is restricted.
Five entrepreneurs from FounderSociety (FS) have encountered this situation when growing their businesses, and they share their unusual ideas for saving where it matters most.
Q. What’s one unusual way to save on overhead costs?
1. Take Advantage of Free Trials and Bulk Discounts
If you don’t know if a service is going to work for you, see if they have a free trial or ask for a free demo. There’s no need to pay for a whole month of service that you’ll stop using in a day or two. Make sure to test it out before you sign up. Many companies have long-term options where you can save big if you pay up front, so take advantage to affect your bottom line. – Jaime Derringer, Design Milk
2. Outsource Cheaply
We have used Fiverr to great effect, outsourcing all kinds of unusual tasks for $5 dollars a project that would normally require hours of work or professional expertise. For example, we’ve used Fiverr to get professional phone greetings, put flyers on campuses, and to compile market research lists and edit databases. We’ve even used it to ghostwrite dozens of blog posts. Outsourcing cheaply is a great way to save money and time. – Julian Flores, GetOutfitted, Inc.
3. Negotiate Everything
Never before has there been a better time to start a business while also needing to put up little investment. In addition to no longer needing to hire full-time employees or paying rent for an office, entrepreneurs can negotiate and barter with blogs, brands, and business to get free services, media exposure, and content in exchange for the same services or those you may already be offering. – Zac Johnson, Blogging.org
4. Join Online and Offline Industry Groups
Being a member of some industry groups or coworking spaces can provide you various discounts on business and technology services. I joined FoundersCard a few years ago and was weary of the cost. The discounts we get every month on SaaS tools and one-off purchases, however, make up for the fee and give us a net savings. This is especially true if you travel for work. Be sure to keep an eye out for these groups. – John Arroyo, Arroyo Labs, Inc.
5. Share Your Space
Our team consists of seven people, but in addition to our design practice, we operate a 30-person coworking space in Chicago. By making an initial investment in the design of the studio, we’ve been able to attract a stable and diverse group of tenants, and in doing so, have built a community of like-minded creative professionals. The best part: our co-workers cover our overhead! – Sara Aye, Greater Good Studio
About FounderSociety
FounderSociety is an invitation-only organization comprised of ambitious startup founders and business owners.
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