4 Simple Ways to Cut Startup Expenses

Written by Doug

July 28, 2014

One of the best ways to increase your chances and give your business the time it needs to learn and adjust to the market is to slash your expenses.  Here’s four ways to make that happen:

Hire Cleverly

You need manpower, but you can’t quite afford it.  How do you pay employees when you don’t have enough money?  Give early hires equity to replace the salaries your existing competition could offer. Many entrepreneurs are protective over equity, but the savings could keep you from burning through cash and keep your dream alive.

Don’t Overpay for Marketing

This is where we come in.  Many companies hire marketing talent straight out of college.  Sure they may get away with paying entry-level marketing wages (if they haven’t followed our hiring step above), but even with lower waged employees, your results will suffer. These hires can cost you nearly $3,000 per month apiece, and the closest thing they’ve had to marketing experience is a text book.  Hire a cost conscious firm like Radius and you can find yourself saving money and seeing the results you desire quicker.

Set the Example

As CEO, the other members of the team should observe you being frugal with your money.  First, you won’t be asked to spend money on things that are unecessary.  Second, your team will be forced to be more creative with smaller budgets.  This is a habit that could reap long-term benefits.

Question Yourself

Is the reward worth the expense?  Decide whether you truly believe that the money you are investing will have a positive return.  Don’t get caught up in the movie-like scenario of buying fancy offices or lavish team retreats.  Concetrate on getting customers and creating revenue first and foremost.

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