How can i minimize the starting cost of a startup?

At the beginning of your entrepreneurial journey set clear priorities on what you want to achieve. Typically for most startups, there are a lot of aspects that are yet to be tested and proven out. The product service is to be validated, the business model is to be evaluated, the price points are to be ascertained, the customer segments are to be evaluated, the communication & positioning is to be evaluated.

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At this stage therefore, it is wise to invest ONLY in those aspects that will help validate your concept and the business around it. After you have got a sense of what adjustments you need to make from your original plans, and when there is a certainty about various dynamics of your business, at that stage start investing in aspects that will allow you to move from pilot stage to growth stage. Office, etc. are aspects that you should invest in after your concept and model is proven.

Till then, work out of rented offices or shared spaces. Boot strap (yes, use things from home till your model is proven).

Minimizing costs is also about understanding what is important to invest in at this stage, and then seeing how best to optimize those investments. E.g. even if you need an office, leasing one and furnishing it may not be a good investment till your model is proven. Instead, even if it means a higher monthly outgo, it may be better to use a business center or a rented office which is fully furnished.

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Author: Prajakt Raut

Prajakt Raut is the founder of Applyifi.com, and author of the book for startups - ‘Starting Up & Fund Raising’ Prajakt personal goal in life is to encourage and assist a 100,000 people to become entrepreneurs. _____________ Prajakt is the founder of Applyifi - an online platform that provides startups a 36-point scorecard and assessment report on the venture's investment readiness [www.applyifi.com], and helps them improve their odds of getting funded. Prajakt is also the founding partner of The Growth Labs, a platform where growth-stage companies get sharp, incisive advice from senior professionals and experienced entrepreneurs. [www.thegrowthlabs.in] Before starting Applyifi, Prajakt was the head of operations at IAN, founding member of a leading incubator, and the Asia-Director for TiE (2004 - 2007). Previously Prajakt had co-founded Orange Cross, a healthcare services company, and was part of the founding team member of Idealake Technologies. While in college Prajakt had founded a printing business and has spent over 10 years working in leading advertising agencies. Prajakt’s book, ‘Starting Up & Fund Raising’, helps startups understand an investor’s perspective, and helps them improve their odds of getting funded. The book also helps entrepreneurs understand the building blocks of a business.

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