The creation process behind a business is exciting. It may seem logical to splurge, because you could be sure your product has a high chance of success. While it’s important to put in the effort to create an impressive tech product, a number of tech startups fail to think about their budgets and how much money they are actually spending.
According to research carried out by CBInsights, out of the top 20 reasons why startup businesses do not survive, running out of cash comes in at second on the list, right behind no market need. So what are the surefire ways that your tech start up can survive, and save money?
Here are three ways to cut tech startup costs;
- Limit sales and marketing.
Yes, it is important to create a buzz around your business, but you don’t want to splash money on sales and marketing right away. It is wiser to wait until your tech product is completely tested and ready for the market, so that the marketing push can now be invested in, to help the product sell.
On the topic of sales and marketing, there are a number of inexpensive ways to market your start up on your own. Such as email marketing, content marketing, display advertising and social media marketing. Once traction is gained, bigger and pricier advertising campaigns can be brought into the picture.
A start up business owner should know that they do not need to match the expensive tastes of big companies in order to compete with them.
- Go Remote
In a world that is increasingly digitally driven, renting an office space is no longer necessary to prove that your startup will be successful. Where meetings could be held online, instructions given online, and even entire interviews, office work places are on the verge of becoming things of the past. More and more tech companies are going fully remote. Tools such as skype, slack and Trello, help in saving money by doing-away with traditional office space.
Going remote also gives you the viable option to move to a more rural or affordable part of the country to save on costs. It has become somewhat of a trend, of startups leaving busier, metropolitan areas in search of cheaper and smaller towns. With advancements in technology, there are no roadblocks from running a successful tech company, no matter where you are.
- Begin with fewer features
As with any fresh, new and upcoming product, the idea is to build it a hundred times better than its competitor. But, the obvious obstacle in doing that, is how much money it will cost. Additionally, before the release of the product, the start-up should know what features would be vital for the intended target market. More often than not, start-ups fail when spending time and money developing a feature on the product, only to find out that the intended market does not find it necessary or helpful.
Creating a reliable product, with a few solid features is a wiser first choice. Through the release of the product, valuable feedback can be obtained about the performance of the product, and what the users liked or did not like. As the startup grows, more developmental features can be added to the product to enhance it even further.
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