You've heard the statistic a million times before — 55 percent of startup businesses fail within the first five years. The statistic varies depending on the source of the information, but they're all in the same ballpark.
That first statistic comes from Statistic Brain, which also notes:
- 25 percent of startups fail within year one
- 36 percent fail by year two
- 44 percent by year three
Makes you feel kind of uncomfortable, doesn't it?
In order to increase your chances of success, it only make sense to save money where you can to ensure the health of your business. At the same time, you don't want to make your business look like the cheap alternative to the competition. Here are some tips:
1. Save Money with Coupons
Families always remember to do it, but businesses often overlook this avenue. If you need office equipment or product for customers, use websites like RetailMeNot.com to cut costs without compromising product quality.
2. Need a Professional Logo?
Logo Garden allows you to make free logos in just a few clicks. These design services simpligy what can be quite a complex design processes. A professional designer or service costs several hundred, perhaps even a few thousand, dollars. But you can still get a marketable logo using a free service.
3. Get an Energy Audit
Did you know one study found US businesses waste $2.8 billion annually on idle PCs? So maybe this one isn't quite so techie-friendly, but it's still pretty significant for the typical startup. Have you ever audited how much energy the lighting and office equipment at your company uses? What if you installed more efficient lighting, or trained your employees on energy-saving best practices? You can often save hundreds per month right off the bat.
4. Don't Overpay for Office Space
Rent is a controllable cost you're guaranteed to pay for the term of your lease. It's also going to be one of your biggest initial expenses. Websites like Regus help you find office space and compare prices. What if you could cut a few hundred bucks off the rent you expected to pay right away? Don't forget to negotiate the ability to sublet the space or to assign the lease in case business goes far better than you thought.
If you are diligent, you can remove a number of the large initial expenses most startups face. Calculate the total potential savings. For many businesses, this could end up being more than a couple thousand dollars per month. That's fairly significant in the early days.