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Rescooped by Craig Stark from Pitch it!

Top 3 Tips To Cut Your Startup Expenses

Top 3 Tips To Cut Your Startup Expenses | Entrepreneurship | Scoop.it


Generally startups don't need anything near the costs most people allocate to them.

Ask yourself what the funding is for. Do you really need it?
Take the biggest expense and ask "why is it so high"?

You'll almost certainly find you can reduce it by 50%.
It isn't the largest any more.

Next week do the same exercise on what is now the largest.
In a few weeks you have your costs down to manageable levels.

So here are the list of top 3 tips that can help startups to cut their costs:

Rework the expenses. Calculate them again and ask yourself why are the expenses so high, rework them again and try working with your team if you can reduce them by a sizeable margin. Ask this question "Whether you really need that cost " Why Do you need that cost now ? As Peter Johnston says in the thread " You'll know by your pre-orders how many to make - indeed you'll probably have funded productionHire Human Capital When The Product Market Fit is Validated. Dont jump the gun in hiring human capital even if you have funds. Test the market, customers, TA even if you have funds in place and when the market is established get the critical manpower in place to get into the market.Outsource & Prioritize : Besides the critical functions focus on your core competence functions. If you are tech guy and and you need HR or legal support, get a cloud HR software to run your system or a legal attorney to create your legal formalities instead of hiring these manpower on rolls. Focus on building your MVP and going to the right customers and getting revenues asap.




Via Marc Kneepkens
Craig Stark's insight:

I agree 100%


Developing the MVP doesn't mean "build the app" and hire developers. Get a mock up and find out what it might cost if a customer were to sign up in the near future.


Don't hire a tech wizard, there are cloud based tools that can be utilized until scale or a specialized feature/ function requirement surfaces.

Marc Kneepkens's curator insight, August 18, 2014 12:25 PM

That's how to do it. Don't think that the big money will create and fund your startup. Your product will eventually have to pay for all of the expenses.

Rescooped by Craig Stark from Ideas, Innovation & Start-ups

11 Fundraising Ideas for Entrepreneurs Who Don't Want VC Money

11 Fundraising Ideas for Entrepreneurs Who Don't Want VC Money | Entrepreneurship | Scoop.it
11 entrepreneurs share their advice on fundraising without relying on venture capital.

Accepting cash in the form of VC funding is not the right choice for all entrepreneurs or business models. Although money is always tight, some startup founders decide that they want to go about fundraising a different way—one that doesn't involve giving away big pieces of the equity pie.

Eleven entrepreneurs from the Young Entrepreneur Council (YEC) offer some tips for raising money without relying on venture capital:

To read the full article, click on the image or title.



Get your Free Business Plan Template here: http://bit.ly/1aKy7km


Via Marc Kneepkens, Justin Jones
Marc Kneepkens's curator insight, March 10, 2014 4:19 PM

Many good ideas and solutions you never thought of.

albert oaten's curator insight, June 19, 2014 8:19 PM

Scrappy alternative  #startup #seed #fundraising without venture capitalists