5 Simple Ways to Reduce Your Startup's Overhead Expenses

StartupNation

5 Simple Ways to Reduce Your Startup's Overhead Expenses

There are plenty of ways to save when it comes to startup costs, but the best thing you can do is find ways to reduce overhead expenses.

Read the full story here

Jaagrit

Well written article. There are a few more effective ways like

1. Advertising in the most cost effective manner so as to optimize ROI.

2. Using word of mouth strategies for recruitments and with customers as well.

3. Offering equity instead of all cash compensation (this also goes a long way in making sure you have the best talent working for you)

4. Get customers, employees, and other stakeholders involved equally so everyone can grow together. This would help you save and be a win-win for everyone involved.

5. Get a professionally designed website in your budget (https://hashtag17.com). But make sure you get a website that SELLS for you. Don't get a website for the sake of it.

Ryan O'Bleness

Glad you enjoyed the article, @Jaagrit, and thank you for providing your own thoughts on the matter. They are really helpful. 

Advertising is an interesting one because statistics have shown that the more you spend on an ad budget, the more likely your growth and return actually goes down, per a Google seminar I attended. So, it is more important and efficient to find a couple of advertising solutions that yield the best results, and stick with those, rather than spending a ton of money on various mediums. However, each business varies. 

McCandless

A really simple way to reduce overhead is to eliminate unnecessary variable expenses, or frivolous expenses that have managed to creep into the business - assuming you can be unemotional about making those cuts.

On a recent show, "The Profit" there was an owner who baked sweet and savory pies. And, of course, the business was losing money.

During the assessment of how to cut overhead and improve the productivity of the staff, they discovered an ice cream machine that she was maintaining - even though they didn't sell ice cream.

It was a no-brainer to get rid of the ice cream machine - and eliminate the cost involved in her staff making ice cream. Yet, when the machine was taken out for disposal, she snuck it back into the business, hid it, and continued to make ice cream.

So, things that seem simple to do, (and the right thing to do) aren't always the case.

Good luck...

Ryan O'Bleness

Good advice, @McCandless. Sometimes it may be tough to part with the things you hold closely, but at the end of a day, it is a business and it has to be treated as such if you want to succeed. Overhead expenses can really cripple a startup with a small budget, so getting rid of unnecessary equipment, software, etc. should be a no-brainer.