January 15, 2016
One of the most important parts of running a startup is managing finances in a proper way. And, while most people are focused on this, many mistakes are made. That normally happens because of the fact that people do not really know what to do to save money. There is this general focus that is put on product development and promotion, a focus that easily leads towards missing out on great opportunities to save funds.
While there are thousands of words that we can say about this topic, there are some things that are much more efficient than others. Because of this, we will focus on three ways in which startup founders can always save cash.
Join B2B Marketplaces
This is what many small business owners do not even consider: most startups should use B2B marketplaces. Such a partnership is valuable because of so many reasons. For starters, you manage to meet new people in your industry. That can help you to set up barters and save even more.
Another thing that we should mention is that B2B marketplaces can also help you to save money that you would spend on marketing campaigns. That is because of all the free advertising that becomes available. This is especially the case when referring to online B2B marketplaces.
Move as Many Operations as Possible Online
One of the really easy ways for a startup to minimize business operation costs is to focus on promoting online or even on selling online. Many successful startups launched in 2015 were actually based online.
Most business owners think that they cannot use the online world. This is incorrect. There is no business out there that would not benefit from having some sort of online presence. You can set up a website in order to promote the services offered or even to sell products/services when that is possible. When you use the online channels, you manage to save huge amounts of money and you can usually completely avoid investments made in regular advertising channels.
Focus on Repeat Customers Instead of Acquiring New Customers
Most novice startup owners do not know this, but it is a lot cheaper to get repeat business than getting new clients. This is something that is highly important because when you manage to develop a strong repeat customer base, the advertising budget necessary to get new clients can be limited.
The problem is that it is sometimes difficult to make people keep buying from you. This means that you need to have a good customer support service already set up and you want to make the current clients feel valuable. Brand loyalty is not what it used to be.
Did you like this article?
Get more delivered to your inbox just like it!