Bills are the worst.
Growing a business is extremely expensive – there are fixed costs you just can’t avoid. Payroll, taxes, technology, and tools are all required costs of business. All these pennies quickly add up month-over-month and the balance of cash burn versus revenue stream is what determines the success of your business.
So what steps can you take to have a baller business without breaking your piggy bank? It’s a great question.
A major cash burn for any business is office space. Fortunately, office space is much more flexible in today’s environment. In fact, even business publication powerhouse Forbes’ recommends coworking spaces as a money-saving tactic for startups. Coworking spaces give companies access to space that fits their needs: powerful WiFi, office equipment, meeting rooms, access to business growth tools, and all the conveniences you’ll need to scale up. The best part? It all comes at one fixed, affordable cost.
Lack of funding is one of the top reasons startups fail. With the help of Forbes Magazine, here are four additional ways coworking reduces cash burn and sets your business up for success.
Live and Breathe Lean
The quickest way to go out of business is to spend too much cash. Don’t opt for expensive tools out of the gate. Your business can get started with less. A large office may be needed in the future when you meet your growth goals. But for now, stick with what you need. Choose a coworking space that has flexible terms so you can grow into larger spaces when your numbers justify it. Don’t spend the cash on elaborate culture events or swag. Your employees would rather have a thriving company and bonuses than company shirts.
Cash is king in business, make the smart and frugal moves to make sure your company can withstand a rainy day.
An extremely hard part of growing a successful business is gaining top talent. Certain jobs are in high demand, meaning it’s more expensive and harder to get great employees on your team. Leveraging specialized consultants can help level up your startup without the cost of a full-time employee. Consultants in fields like finance, accounting, marketing, human resources, and branding can help you get to the next level without the high overhead cost.
Automate Whenever Possible
Automation creates efficiency and efficiency saves money. Aim to automate redundant tasks to help your startup stay lean and savvy.
Are you manually updating inventory sheets every week? Automate it with a tool that syncs to your website’s inventory system. Do you build out each email from scratch? Create templates and automate them. Do you manually calculate your business numbers? Add them to a spreadsheet and create a formula to do it for you.
The less time you spend doing these types of tasks means more time you can spend on tasks that contribute to your bottom line. You can use free time tracking tools to understand where you’re spending your time. Make adjustments and find opportunities to maximize your time and energy.
Build Strategic Partnerships and Barter
If you’re a startup, you probably don’t have the cash flow to pay for expensive service providers. Instead, create partnerships and barter trade of services. Find an area that’s of value to both of you, and negotiate a trade. Keep in mind, you should treat these as partnerships, don’t barter with someone you couldn’t see yourself doing business with. All business decisions should be strategic to your mission and values.
While you’re building your business, don’t forget to surround yourself with like-minded entrepreneurs. By connecting with others with similar experiences, you’ll feel reinvigorated to think outside the box.
At MAC6, we’re committed to helping entrepreneurs succeed through a fully equipped coworking and co-manufacturing spaces. If you’re interested in learning more about the spaces, we’d love to hear from you.