Reducing costs.
Sounds simple and everyone uses it as a buzzword. Here are a few ways startups can reduce costs:
- Instead of buying new equipment buy used. One startup was planning on spending $3495 on a new vinyl printer/cutter. They found one on Craigslist for $700 and it included a number of rolls of vinyl at no extra cost.
- Instead of both founders quitting their jobs have them work part-time and take no or little salary. It will take up more of their time, and it will make tough decisions between working the second job and “spare time” but that is the tough choices that need to be made.
- Instead of renting or buying a large facility, look for something smaller, or part of someone else’s space that you can rent from them. You get a more affordable space and exposure to their clientele. They get money for space they are not using.
- Providing space to a customer that provides you services in exchange. Cash is not exchanged but both companies get something of value.
The central idea is to reduce costs by finding alternative solutions that deliver the same thing: used vs. new, resources paid in ways other than cash, reducing the quality without compromising expectations, and by trading instead of cash.
