Source | Entrepreneur : By Nidhi Singh
Starting and running a business on your own is a risky affair.It requires a lot of hard work, dedication, creativity and sound planning. Also, one needs a decent amount of cash flow to run the company. The more cash you will save, the easier will be your initial entrepreneurial journey. If you have a tight budget, always know the difference between necessary and pointless spends. Also, keep track of all expenses and cut down wherever and whenever required.
Entrepreneur India lists out few lucrative ways for startups to cut costs in the beginning.
Hiring Done Right:
Nalini Jindal, Chief Investment Advisor, Intellistocks feels there are no simple ways to cut costs. A startup requires employees with the specific skill set and a lot depends on each and everyone’s performance. A bad hire costs a company approximately 6 months of time, recruitment cost, payouts etc.
Jindal emphasized that hiring and assigning responsibilities with the right skill set helps achieves efficiency in work, keeps the employee happy and keeps attrition rate to the minimum which is very important for a startup.
She further added that as a startup, narrowing the business focus to the more revenue generating and efficient projects rather than taking up too many projects/customers at once is a good idea. So, one must do the cost-benefit analysis and reduce the opportunity costs.
“This way one can be more productive and produce high-quality work thus generating more revenue,” added Jindal.
Pay Your Employees More:
Gagan Kapur, Co-Founder & CEO, EasyBuyHealth recommends to save cost, startups must pay people better and hire experienced professionals.
“It will help you reduce the learning curve and avoid costly mistakes. Pay them more, and expect more from them, which means no need to hire unnecessary junior resources. Secondly, follow the principle of hire fast, fire fast, which means reward the good people, remove the bad people,” shared Kapur.