Bootstrapped startups refer to new business ventures that don’t rely on venture capital funding. Their funding, therefore, comes from their own pockets, family, or friends. Running out of funds is a common occurrence for such startups. This is because they can barely survive on their own before going bankrupt. For the owners of the business/company, there’s always that level of anxiety emanating from the fact that you could lose everything. Fortunately, there are ways that you can use to save money and avoid a scenario where you run bankrupt.
Benefits of Saving Money as a Startup
There are so many benefits of saving money as a startup. Remember, you don’t have an alternative source of funding that you can rely on. Thus, the need to save funds is even more important at this stage. Here are two of the main reasons why you need to save money as a startup:
1. You Won’t Panic at Unforeseen Expenses
There are expenses along the way that might find you unprepared. And this is where savings come through for you in ways you wouldn’t have imagined. At some point in life, we all face challenges, and so does your business. So, what are you going to do when this happens? Panic? Savings has the name save because they can actually save you from a stumbling block.
2. You Can Take On Growth Milestones
As a startup, you’re definitely envisioning the time when you’ll be a successful company with sufficient funds. But this isn’t coming to you on a silver platter. You have to put in the work and invest funds to make your growth possible. Most startups have stunted growth because of a lack of funds. And you can solve this problem by saving since you depend on your own funds to thrive. In case there’s a big project that you want to accomplish as a startup, you can begin saving bit by bit.
Ways of Saving Money as a Startup
Are you now wondering how you can even start saving as a startup? Well, there are several ways that you can save funds when growing as a new business. These ways will help you even when you’re fully bootstrapped.
1. Use Pre-Owned Tech
You don’t have to purchase new sophisticated technological equipment. It is easier and cheaper to access pre-owned tech, or get an old Macbook fixed. Often, many assume that only new tech can serve their business. But so many startups are using pre-owned tech and it’s working just fine.
2. Extend the Life of Your Devices
Extending the life of your devices means that you won’t have to create a budget for new ones. Thus, you need to ensure that you perform routine maintenance procedures to extend the lifespan of the devices you use as a startup.
3. Use Free Tools for as Long as You Can
There are a lot of free productivity tools that you can use as a startup. These will help you save the funds you would have rather used on paid options. And here’s the truth – they work just fine.
4. Don’t Build Custom Software Early
Often, the mistake that many startups commit in the early stages is to build custom software way too early. Rather than depending on generic software that serves the same purpose, they opt to create their own. This is one way to run your accounts dry. Custom software development is very costly. And most of the time, you don’t even need it in the beginning stages of the business – especially if you’re bootstrapped.
5. Always Ask For a Discount
Don’t be shy to ask for a discount when purchasing stuff as a startup. This is a surefire way of saving funds as a new business. When you buy equipment in bulk, you can request that the seller gives you a discount. Alternatively, you can search for sellers who have running offers.
6. Look For Tech Solutions
Ensure that you get the right tech solutions for your business, as they can help you save funds. If they’re efficient, they will reduce the running costs. Hence, this will help you focus funds on more pertinent sections of the business.
7. Seek Perks from Big Companies
Seeking perks from the big wigs in the business can equally help you save some extra funds. Try that out today.
8. Test Marketing before Spending
When launching a new product or service, it would help a lot if you tested the market first. It will save you from spending too much money. Often, many people just start spending on marketing and advertising without even testing the market. This is a wrong move that can easily drain your account.
This guide will bail you out when you’re bootstrapped and don’t know how to save funds for a better future for your company. Simply follow these tips and you’ll be on your way to greater success as a startup.