A startup company, whether bootstrapped or with some measure of modest investment, has to be more efficient in its expenditures than any other company. We all know that fundamentally “cash is king”, yet so many startups burn through what they have before they can gain any traction in the market with their product or service.
Here are some of the main reasons this happens:
- Technology Purchases – Rather than buying equipment and software, save your cash by renting or leasing. Major hardware vendors such as Dell have leasing programs you can qualify for online.” Software As A Service” (SAAS) companies provide online versions of Microsoft Exchange, CRM and SharePoint, providing all the collaborative power you need at a fraction of the cost of buying your own systems.
- Mega Marketing Campaigns – Be sure that your marketing dollars are spent wisely. Employ a “Guerilla Marketing” philosophy to your marketing strategy. Be sure to get the biggest bang for your buck by focusing your spending on realistic channels.
- Field of Dreams Hiring – Too many decision-makers are worried about how they will be able to handle all that business when it comes in the door and staff up before they have the business to support the overhead. If you’re smart about your business process development, and use strategies like SAAS technology and temporary contractors to support scalability, you can readily add people as you need them without disrupting your business.
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