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4 Tips for Cutting Costs While Maintaining a Pleasant Start-up Environment

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by Startacus Admin

Whether you’re looking to create a frugal start-up, or it’s already up and running but a slow in growth means some belt-tightening is required, cost-cutting is nothing to be ashamed of. It allows the business to continue as a going concern with the potential to generate greater profits at year-end if results turn out better than initially expected.

Here are 4 tips to reduce costs while keeping the work environment pleasant.

Switch to Open Source & SaaS Software Solutions

While many start-ups feel the need to have Microsoft Office installed on every PC, there are other options.

Google Docs is free to use and has almost all the same features (and it will save files in the DOC or DOCX file formats too). Similarly, Google Sheets provides plenty of spreadsheet capabilities for any laptop or tablet.

Many desktop software solutions with expensive licenses are now available online for less. Indeed, SaaS solutions have been launched with similar functionality – like accounting software – at a lower cost using a scalable software model.

Take advantage of the potential cost savings by switching away from expensive software licenses to discounted or free alternatives online. Also, there are plenty of YouTube training videos to familiarise staff on how to use these solutions with slightly different interfaces than what they’re used to.

Save on Energy Costs

Purposefully reducing energy usage is not only good for the environment but it cuts costs at the same time.

Get the office checked for air pockets or leakages where either cool or warm air is lost, increasing HVAC operating expenses. Use blinds to block out the sun in the summer to reduce the amount of heat that reaches the interior. This will help to keep the office cooler and allow the AC to operate without needing to be set as low.

Power off PCs, printers and other computing equipment when it’s not needed. Set up energy modes on every computer to have the laptop screen or monitor turn off automatically when left idle for a set period.

At the same time, make sure you're not overpaying for electricity. You’re only doing this in half measures when you reduce the kilowatts consumed but fail to consider what the business pays per kilowatt for business electricity.

Don’t necessarily buy when you can lease

Frugal startups might consider leasing or renting rather than buying something new or even refurbished. This could be anything from vehicle requirements, through to even office water dispensers and office vending machines. For example, using a vending machine makes snacks available to staff without needing to find shops nearby. However, many companies prefer leasing them to get the benefit of self-service and access to newer machines which are generally far more reliable.

Try Freelancers and Remote Workers

When needing to reduce the cost of an expanding workforce, take advantage of the availability of freelancers. They can complete administrative and smaller tasks which frees up employees to focus on more important work.

It’s also possible to use remote workers to save on the need for office space.

The company can reduce the office size to something smaller when the current one is up for a lease renewal. This also leads to further reduced power usage and in the case of freelancers, cost savings on PCs, software, and other related expenses too.

By being flexible about how you approach start-up expenses, it’s possible to limit the costs. This allows the business to reach profitability at a later time and survive through the initial growth period.

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Published on: 2nd April 2020

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