By Kewal Kapoor
Starting a business certainly takes more than just an idea. It requires the entrepreneur to put in place a basic infrastructure, rope in the right people, market the business and ensure that it takes off without glitches. In a way, beginning the startup is the most critical phase of the business. However, adopting certain intelligent and strategic practices in the initial phase can help you keep your expenses to a minimum and break even faster. The budding entrepreneur must first understand whether the start-up offers a viable solution for the market and whether there is sufficient demand for the good or services it offers. He must then exercise all strategies to ensure cost effectiveness of the enterprise.
Here are some simple strategies that can keep your initial investments moderate and prevent reliance on loans.
Focus on digital ecosystem
While establishing a full-fledged brick and mortal office takes time and significant monetary investment, establishing a noticeable online presence is much cheaper. This is why running a virtual office is the most cost-effective solution for startups. A digital ecosystem doesn’t just mean having an impressive website and effective digital marketing strategies; it also includes establishing a distribution channel online and building a strong social media presence. Focusing on your social media presence through initiatives such as blogs, facebook posts and tweets is one of the best ways to drive traffic to your website without paying for it.
Hire intelligently
Don’t rush into hiring too many people in the initial phase of your business. It is always better initially to look for freelance arrangements or consultants rather than add people on payroll. Establish viable partnerships with a few associates and freelancers who can work for you on different projects.
Minimise office expenditure
Once you decide to have a proper brick and mortar presence, make sure you keep the expenses of running it as low as possible. Invest in only a handful of workstations initially and allow the employees a lot of flexibility to operate from wherever they please. It will not only keep your employees happy but will also help you save the costs of running an office.
Bring your device policy
Another cost-effective intervention is to ask employees to bring their personal digital devices to work. You can just invest in a cloud network and allow employees to access it through their own devices. Their own laptops, tabs and mobile phones can become your official machinery. This approach also adds to the convenience of employees and boosts productivity.
Adopt the per person per hour per minute output module
It is imperative to chart out your overhead costs and ensure that the expenditure doesn’t overshoot the revenue in any case. The entire purpose of running a business is to ensure that you run an operation effectively. To judge this efficacy, we have invented a module called the ‘per person per hour per minute output’ module. This approach allows a startup to evaluate the productivity of every individual and machine working to manage its operations.
The writer is director & creative strategist at Chai Kreative and Return of Million Smiles
