Technology is changing the way companies and consumers do business. Productivity can be driven up to new highs which only helps companies increase their profit margins. Driving down costs at a startup is important as staying as streamlined cost-wise is imperative. Lack of cash flow can lead to things like late paychecks or the inability to market the company appropriately. Startups that have a sudden influx of cash can make poor decisions with the cash as they feel it is just the beginning. Investing the cash back into the business instead of taking staff out to high-end restaurants multiple times a week is important. The following are ways that technology can drive down costs so your startup can have the healthiest cash flow possible.
Automate Wherever Possible
Automation can save large amounts of time especially for tedious things like data entry. The ability to find different tools and software that is easily integrated can save massive amounts of time. Automated follow-up emails are a perfect example as it makes it easy to do this on a mass level for the sales team. Asking the staff how you can make their job easier is important. They might identify a process that can be automated that drops morale and decimates overall daily productivity. Automation also eliminates human error which is just an added bonus to the increased productivity of staff.
Use Data to Identify Production Bottlenecks
Data is used in business decisions and processes is a necessity. Taking a look at processes to optimize with the assistance of data can provide clarity. Bottlenecks in productivity can help identify a certain process that needs to be handled in a different way. The utilization of data in the marketing and sales departments has taken over. Everything from pitches to campaigns is tracked to the most minute of details. The ability to allocate money into marketing and sales tactics that convert rather than wasting budget is essential. New machinery or parts could improve these bottlenecks for a manufacturing startup. Finding reliable parts to replace current parts is as easy as going to Octopart.com which has a number of parts for reasonable prices.
Freelancers Allow a Startup to Affordably Scale
Freelancers are going to be more affordable than hiring a person in-house for the most part. Building a reliable pool of freelancers in a variety of areas can prove useful. Scaling a project for marketing is a perfect example as finding a few writers can allow content creation to take less than a week. Freelancers often times have a background in the services that they are offering. Legal professionals help in writing up contracts while many marketing professionals have worked on the agency level. Data entry is another great example of a task that can be done by freelancers rather than hiring staff to do this in-house.
Employ a Fully Remote Staff
A number of businesses can be run remotely when the right staff is put together. There are plenty of project management systems and time tracking platforms. These allow management to see how employees are producing. The lack of need for an office will allow the startup to save on their fixed costs which can be immensely important. Far too many startup founders get caught up in the thought they need the largest in-house staff number with an impressive office. Meeting with potential clients can be done in a rental space in a shared office setting that has become far more popular.
Being able to hire people full-time from around the world can also save immense amounts of money. Most people are willing to take less in terms of salary or per hour wages if they can work remotely. Living in cities where the cost of living is low but the quality of life is high is very common for remote workers. Living abroad in countries like Thailand or Indonesia are both hotspots for remote workers.
Utilize Digital Marketing to Drive Cost Per Lead Down
Your startup can truly go global with the right digital marketing strategies. Being able to rank at the top of the eCommerce giant’s product searches can allow for millions of sales. Ranking at the top of search engines for a product or service will also be incredibly important. You will have to focus on different country’s search engines like that of the UK or even India depending on your type of business. Social media can be a perfect way to establish a brand for free and engage with potential customers for free.
Drive costs down daily with technology as a streamlined company will be far easier to keep profitable. Consider the tips above and do not get boxed into the traditional way of thinking of business. Technology has opened up a number of pathways to success.