I am sure that you must have seen or heard about people who had great business plan but their plan just remained on paper and it never materialized because of a heavy startup cost. It is one of the major problems, which entrepreneurs around the world face, and it is because of this very problem that most of the ideas die in mind, while the rest just manage to come to paper and after that they remain on the desk.
It is a fact that great ideas require heavy startup costs the unavailability of which makes it hard for the entrepreneurs to put their plan into action. However, there is a not-so-wise way of doing things and there is the smart way of doing things. I’ll tell you something of the latter way of doing things which will surely help you in overcoming the startup costs problem when starting a business.
As cliché as it may seem to you, outsourcing is by far the best method of cutting startup cost. There are numerous ways in which outsourcing can help you reduce all types of costs associated with starting a business. No matter whichever process of the business is outsourced or whichever department a business wants to work virtually, it saves on infrastructure building costs, human resource costs, equipment costs, maintenance costs and all kinds of other running costs. Therefore, outsourcing is by far the best way of starting a business while worrying less about the startup costs. However, pertaining to outsourcing, the one thing that every startup business must do is proper research to ensure that the outsourcing service provider selected is the best one and does not compromise on quality.
The second way with which you can cut your startup costs substantially is by exchanging services. There are always businesses who will be interested in your services, and you will be interested in their services to start the business. Therefore, instead of formally approaching them and becoming their client, you can offer them exchange services, as per which they will help you in fulfilling your startup need and in return you can compensate them by providing them your services. Ergo, you must consider exchanging services as a method of reducing startup costs and must opt for going for an agreement if needed in this regard.
Start From Home:
The third biggest startup cost that hinders in the way of starting a business is the establishment of a proper office in some commercial building. The purpose of an office is where your customers and clients can reach you, therefore, I ask you the question that can’t your home be your office? The wise way of starting a business is that you start it from home, this way you will be obviously saving a lot of cost that will be spent on renting a space and then making it office like. Therefore, instead of being formal and going for a formal setup, go with a home office and as far as my knowledge is concerned, home offices are an in thing and there is nothing odd about them.
Now it’s Your Turn!
Did you also have to face startup costs problems? How did you overcome those problems? Which cost cutting solution worked for you the best and why? Do you favor any of the methods of reducing startup cost mentioned above? I wait to read your thoughts in the comments section.