How to Reduce Your Startup’s Burn Rate
Lack of capital has always been known to be a major challenge for startups. Luckily, in recent times, entrepreneurs have had access to funding in so many different ways. Venture capital firms, low-interest loan options, pitch competitions in which winners are awarded seeds for their businesses, angel investors and so many other options.
These, however, can still be expensive if you are really low on cash, and getting help from investors can be really tricky if you are not well informed. You may even need to pay a business consultant to guide you through the terms of investments, loans, and partnerships. Talk about spending more while you still have less.
If you are starting a business, you want to be able to save as much money as you can and begin generating revenue in the shortest possible time. How can you do that and still have enough to employ staff, manage your team and eventually scale?
Here are three simple ways
1. Set Up a digital workspace
This may depend on the kind of work that you do but for businesses in categories such as fintech, SaaS, education, entertainment, and the likes, you might want to consider setting up a digital workspace.
If you study the trends carefully you would see that the world has smoothly adjusted to remote work as more and more companies are gradually shifting into the different kinds of work models that their employees are comfortable with.
In some companies, employees are allowed the flexible option of working from home a number of days a week and being physically present on-site for other days, a style that is termed hybrid.
As a beginner, you can set up an office space in your home for yourself and set up an online one where your entire team can collaborate. This has many advantages over setting up physical space. The main costs involved in a digital workspace may be subscriptions for the platform and Wi-Fi. That definitely is cheaper than having to buy or rent a space, buy furniture, pay for transport or buy gas for transport to work every day, consider the cost of transport when determining employee salaries, and don’t forget utility bills.
2. Hiring — Pay for individual tasks done
For a startup, you may want to focus on skills-set other than some good-looking academic qualifications. If you are keen on academic qualifications, then you want to make sure that it comes in hand with experience and skills. Usually, people with high academic qualifications demand high pay. Ask yourself if you have the recourses to do that.
An easier alternative for you would be to post individual tasks that you want to be performed and get skilled freelancers to work on those tasks for considerable pay. (Where can you find them? I’ll tell you at the end of this article)
The advantage that this has over getting full-time employees is that you are sure that you are only spending money on tasks that have been completed and that is relatively cheaper than paying an employee even when there are no major tasks for them to do.
3. Be in Charge
The success of your business depends 100% on you. You are the dreamer; the bearer of those business goals and you need to take the reins and drive your team to where you want to get to.
Digital workspaces come with features that help you manage your team and drive productivity. You can actually track the involvement and productivity of each of your team members. With those checks and implementation schemes in place, you can be sure that everybody on your team will put in the right amount of work needed for your startup to grow.
As I promised earlier, I have just the right platform for you to get talent for your tasks. Spurt! has built a digital platform called Sync!. Sync! is a management tool that helps you build your business and manage your team. With Sync!, you can track milestones, collaborate on projects, and process payments all in one place, and on the go!
For hiring, Sync! has a pool of members whom you can invite to work on individual projects with you. All you need to do is to Sign Up as a partner, create a project, load your wallet and put the amount that you want to pay for that project in escrow, and invite a member to work on that based on their skill set and portfolio. You get to break down the project into milestones and track how well your member is working on that project based on their ability to meet those milestones.
Click here to book a demo and find out more about how Sync! works and how it would benefit you as a business owner. You can also visit our website, https://teamsync.tools/
If you found this useful, clap, comment, and share. You should also subscribe to our newsletter to get articles like this one.