How to Launch Your Startup & Keep Your Costs Down
# How to Launch Your Startup & Keep Your Costs Down
There are any number of reasons why entrepreneurs decide to start a business—passion about an idea, the desire to work for themselves, better work-life balance … the list could go on. There is long held beliefs that half of businesses fail within one year but this is something that can be tagged as “fake news.” Data from Fundera reveals that 30% of new businesses fold during their first two years, 50% make it to five years, and 66% close down shop during the first 10 years. An impressive 25% make it to 15 years or more.
Yet, even though the failure rate isn’t as alarming as made to believe, the reality is that not every startup is going to succeed. While there are any number of reasons small businesses fail, the inability to control costs is certainly a catalyst.
Following are some recommendations on you as a founder can contain your costs:
Don’t tether your business to a physical office Physical office space is expensive—often consuming upwards of 10 percent of a small business’s revenue—and moreover it locks you into a long-term contractual obligation. You can consider co-working spaces and more more you can look to flexible space solutions. These help you eliminate office space costs and importantly day offices provide you with much greater flexibility in terms of employee growth, office location and expansion. Leave finding a long term home for your business when you have greater visibility of the future.
Host meetings in rented conference rooms Whether you are hosting an internal team meeting or a session with a prospect or customer, coffee shops are a bad idea. In addition to frequent disruptions, you lack privacy and presentation tools. A cheap cost effective and low commitment solution is on-demand space. Its as simple as finding a meeting room in an ideal location and booking it for the time you need with a tool like DuanDuanZu.
Offer flexibility to your employees Research shows that many employees are willing to take less pay if offered greater flexibility. Concerns for better work-life balance typically tops the list, with workers seeking greater work hour and location flexibility. Any concerns about the inability to have in-person meetings and interactions are obviated by the availability of the on-demand office.