 For any business owner, no matter the size of the company, a frugal mindset is essential. When you think frugally, you have the power to spend your money smartly. Being frugal is not being cheap. Frugality understands the value of the purchases being added to the company and being cheap means the focus is only on the sticker price.
In a way, that is the concept of being a lean startup. In a way, the lean startup idea is almost dead as most are spending lavishly on things that don't contribute to the core of the company. However, once the economy slows down, lean startup and frugality will be more relevant. A frugal business owner can carefully assess their business and wisely spend the money based on their needs. The cut in unnecessary spending could help the company to survive any unforeseen situations as a frugal business owner could operate at maximum capacity with lower costs than his/her competitors. Listed below are the five reasons to become a frugal business owner: Frugality is a Mindset Being a frugal business owner doesn't imply that you need to curb money at any expense. What will set your business apart from the others will be the careful decisions you choose to make from number and results and then to spend the money accordingly. Improving business operation is more important, even if you start with a minimum amount because such a mindset will help you in the long run. Frugal Owners have a Sharper Instinct Knowing how, where, and when to spend the money wisely is important as sometimes it is too tempting to pass off a perfectly good deal, and you can acquire a habit out of it. Or you end up making a purchase that does not go toward your goal. Business frugality means always taking sharp decisions, rather than acting rashly, which can turn out to be good for your business. Training Yourself for Emergencies Even if you end up saving your expenses, and your business is profitable, you can still face bad times. Companies have their ups and downs, and it's important not to lose hope when it starts to go downhill. That is why you should be prepared for any setback that shouldn't be viewed as a failure. Frugal owners know that in order to survive in the overflowing business market, one should always be prepared for setbacks. False Assumptions About the frugal owners, the common misconception that goes around is that they never spend big. The thing to note about spending money on big projects is that you carefully do proper research and see if you need to invest or not. Therefore, even if you are at the top of the game, you must always keep a frugal mindset. Tracking Expenses Certain assumptions that go on about successful owners are that they can buy anything as they please. But, a frugal owner would try his best to save the money that can be used for long term purposes. And they choose to live below their means, rather than living a luxurious life. Final Word From Charles Munger to Benjamin Franklin, all the successful people tend to live a frugal life below their means. If you are about to start a new business, it is important to note that you don't measure your success with others. As frugality requires a lot of patience, and sharp thinking to make an improved decision for their business. References https://www.thedailypositive.com/successful-entrepreneurs-lessons-frugality/ https://www.entrepreneur.com/article/293306 https://www.completecontroller.com/5-good-reasons-for-being-frugal-that-entrepreneurs-need-to-remember-when-they-succeed/
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Content Marketing is often used as a marketing strategy by the startups to flourish their businesses at low costs. The ROI of content marketing is huge. If you are confused with what it is all about, it is a kind of digital marketing, including data in any form. It comprises of visuals, audio, written posts, or anything related to social media. Content marketing involves all the methods in which we can arrange and sell this data. There are various ways by which content marketing can be done by the ones looking up for the start-ups of their businesses. Develop A Strategy: You should prepare a proper plan which would assist you in carrying our content marketing. Conveying your message to the public is not an easy task. For this, you need to go through a series of stages so that you can reach your stated goal. Firstly, you need to captivate the clients' concentration towards your brand and tell them more about it. Then you need to keep them stay focused on your brand by letting them know what else is offered by your brand. Later on, you need to address the customers more convincingly, telling them that there is their need to buy your product. You can achieve this by writing several blogs, articles, and posting all over social media to make sure your customers are persuaded. The last step of this strategy is where you need to apply a tactic that the customer will miss the product if they don't buy it. It makes customers make immediate efforts. Add More Graphics: Customers are usually enthralled by the visual images displayed on your content. Written words are less likely to gain attention and be viewed by the customers. So, the main emphasis of the startups should be adding more visual content and graphics to conduct content marketing. Maintain Consistency: There is a need to understand that the readers keep a check on your reliability and credibility more often. So, one needs to update their content more often, which would draw the attention of a large number of readers. Keep A Check of Time in Your Mind: One should keep their eyes on a clock when they are thinking of adding a post. It might be possible that your audience, to whom you are targeting, stays offline when you intend to post. You can choose the time slots when they are supposed to be most active and then update your social media accordingly. Do Not Forget What Is Trending: One should be aware of their businesses and company so that they can go well with the latest trend of it. Outdated and vague information shall not be considered. You should remain intact to what is the talk of the town recently. Conclusion: Content marketing always remains a great option that goes along with your affordability when you look forward to start-ups. Points briefed above are various ways through which one can start doing content marketing efficiently and in an organized manner. References: https://shanebarker.com/blog/content-marketing-for-startups/ https://www.business2community.com/content-marketing/8-content-marketing-tips-your-startup-needs-to-start-following-today-02277338 https://www.failory.com/blog/content-marketing-for-startups  A coworking space is proven to be beneficial for entrepreneurs and freelancers. Especially if you are starting a new business, a coworking space may have many positive impacts on it.
What Is A Coworking Space? A coworking space is a creative, shared office space that promotes cultural socialization, which helps nurture business and increase your well-being. If you are considering working in a coworking space with your team, these are the advantages you should keep in mind: Structure And Productivity Working from home sounds cozy, but it has a lot of distractions. When you get out of that private space for a specific reason, it provides a structure to your life. It is less congested than a corporate office yet more structured than working from home. It has fewer formalities and distractions but more productivity, which makes it a convenient place to get work done. When you are surrounded by other people who are working hard, you will be motivated to work diligently too. It makes you more focused and confident. A Comfortable, Business-friendly Workplace A coworking space has all the facilities that make it a business-friendly workplace. At home or a library, you might have a lousy internet connection, but at a coworking space, you won’t find such problems. Also, there be a brightly lit facility, comfortable desks and chairs, printers, meeting rooms, pantry, and leisure areas for tea breaks. Improved Accountability Having your team members to encourage you for your work can be your biggest motivation. When you are by yourself, it becomes challenging to hold yourself accountable for the time and money spent. When you are paying for the coworking space, you would want to keep your accounts and expenses up to date. When your team members are with you in the coworking space, you will face the problems that arise in your business enthusiastically. You will not lose your morale because the team will support you through everything. Cutting Costs And Gaining Flexibility Working in a coworking space will help you cut costs in your business. Since a coworking space is a public office, the rent and utility bills will be divided and will, therefore, save a lot of money. Besides that, the other facilities are shared too, so it doesn’t take much to cut in your budget. Networking Opportunities Since a coworking space is a public space, there is a more significant opportunity for developing business relationships and links. Having business friends who help you is a crucial resource for you and your business. You can also end up hiring each other or starting a business together. If you are an introvert, yet a hard-working person, your work will speak for itself. When it does, your coworkers will know who to call when they need help and vice versa. It is also a professional place to meet your clients since inviting them at home does not give a good impression. If your client is orthodox, he will not hire someone without a professional environment. Working in a coworking space not only gives you the benefits related to money. They also help in less tangible ways, such as socializing, having peers close to your network, and being surrounded by other motivated individuals. References: https://smallbusinessbc.ca/article/6-benefits-co-working-spaces/ https://www.coworker.com/mag/5-lesser-known-benefits-of-working-in-a-coworking-space https://drop-desk.com/blog/benefits-of-coworking-spaces  Coworking and shared spaces have become more common over recent years. Entrepreneurs are opting for this kind of environment as it gives them a better ground to start and a more fertile ground for their companies to grow in. Coworking is getting popular, considering the massive demand for them as it offers a more flexible space for a company in the midst of growing and expanding.
As coworking seems like the answer to managing costs and ensuring a company runs efficiently, startups and freelancers are signing up for coworking. Another question arises, how do you increase the value of your coworking membership? Attend Community Events Attend the community events hosted at your coworking space. That's how you get to know other members. This also creates a friendlier environment and a way to collaborate in the future. Bring Your Favorite Work Accessories Have a favorite wireless mouse? Favorite pair of air pods? Favorite mug? Bring them to make yourself more productive at a coworking space. You could even bring your favorite plant if you think it is going to make your work better. Manage Distractions It’s easy to get distracted when working in a shared space. But there are things you can do to decrease the noise and ways of interactions. For example, you could go into a phone booth or a meeting room to get some me-time. At Treehouse Society, we even have a meditation room to clear your head before you head into work again. If you can't get a private room, you could even face a wall in the basement to make sure you get work done. Gossip a Little Well, maybe not too much, but chitchat in the kitchen with other members at lunch to not only connect and learn what others do but also get some insight into what is popular in society. Pro-tip: the best time to gossip is getting coffee or while having lunch in the kitchen. Create A Routine Instead of rolling into work whenever you want to as it is so tempting for a freelancer or a startup without structure, create a routine. Set a time to get into work so you can set your mind to expect to work when you are at a certain location at a certain time. Host Events Host an event for your company at the coworking space to create a community for your customers and users. Launch party, discussions, workshops, to name a few ideas for your company to host to create community, and generate some traction for your company. Our coworking space membership comes with event space hours for your company. Peer Pressure You want to be productive if your surrounding is filled with productive people. Sometimes, a coworking membership is valuable in that way. Especially if you are a freelancer lacking motivation at home, a coworking space should be where you go to get work done. There's a lot of value in joining a coworking space; for example, you have a secured space to work and increased productivity from others working around you. However, just adding a few things to it would make it that much more valuable. Reference: https://www.coworkingresources.org/blog/8-ways-to-attract-freelancers-to-your-coworking-space https://www.coworker.com/mag/10-tips-to-get-the-most-out-of-your-coworking-space https://catjohnson.co/16-creative-ways-market-coworking-space/  Are you thinking of starting a business? Or do you already have a running start-up? Things might get overwhelming at times as start-ups require a lot of long hours and hard work to be successful. However, one should always keep the goal in sight and finance in check.
You need to make sure that you have an efficient system running that allows you to be the most efficient with your capital. You don't want to be one of those startups who burn through their cash before their product was even mass adopted. We’ve come up with a list of five important steps that you should incorporate in your startup to minimize your cost. Don’t overspend While starting a business requires a lot of capital, there’s an efficient way that you can go about it. Rather than taking up large and unnecessary expenses, you should analyze what’s beneficial for your business in the long run. A cost-benefit analysis is extremely important for you when it comes to spending. Is the expense you’re planning on making going to be beneficial for you? Will the benefit exceed the cost? These are all the questions you need to think of before spending on anything for your startup. Opt for coworking spaces The coworking community has been in high demand recently. It’s efficient, effective, and it allows you to get your work done while incurring a lower cost. Coworking has been proven extremely beneficial for startups as it helps the business owners to reduce their costs. Shared space allows you to share rent according to the floor space you occupy while giving you access to other great people as well! You can now work side-by-side with other startups and learn from them while trying to establish and grow your business. Secure a minimum viable product A minimum viable product (MVP) refers to something that is like a prototype of the product you wish to provide in the market. Having an MVP allows you to get first-hand feedback from customers and get to know what exactly needs to be improved before launching the actual product into the market. The customers who get this product are limited. Thus it provides business owners with a test-run that helps them figure out how to modify and improve the actual product. Outsource It might be a smart idea to outsource when you are building the first product. If you are unsure if the product will do well, having a permanent employee could be stressful. The market is filled with people who freelance. You can easily find people that meet the job description for your startup using different websites. Avoid high costs and stress by paying freelancers specifically for the project they do! Use free marketing channels Marketing could be done free or at a lower cost than you think. You can easily do this by using social media as your medium to market your business. Switch to SEO marketing later for quicker and more cost-effective results and conversions! Startup life is already stressful enough, but it would be more stressful without money. You need to make sure that you avoid high costs so that you don’t become a victim of a cashless company. Check out our coworking space to save you money this year! Reference: https://apptension.com/blog/2018/10/29/how-to-reduce-startup-burn-rate/ https://fullscale.io/reduce-startup-burn-rate/ https://smallbizclub.com/startup/funding-a-startup/5-keys-minimizing-burn-rate-startup/  Overthinking is generally considered a negative trait in any scenario because of the negative impact it has. If you’re someone that suffers from overthinking when it comes to decision-making at your startup, then let’s get something clear. If you’re overthinking about details and taking too long to make decisions, then you’re going to lose out on many opportunities. This causes analysis paralysis, which is what a lot of brilliant founders fall into that trap. Overthinking causes problems that you probably don’t even exist in your startup. We’ll be discussing a detailed list of everything that goes wrong in your startup because of overthinking.
Leads to Procrastination Have you ever wondered why you’re unable to mark all your boxes on your checklist on time? One possible reason for this is your overthinking behavior. Once you start thinking about something, it isn’t very easy for you to stop analyzing it. This results in you only thinking about what could be done rather than taking any actions and getting work done. The initials days of startup make or break your business. If you’re going to be overthinking about things that are minute or don’t require too much time to resolve, then you will lose out. Lower levels of productivity Once you’ve become a victim of overthinking, you’re bound to be less productive at your work. How are you supposed to grow your startup if you’re unable to focus your energy and time on important matters? The more you overthink, the less productive you become, which in turn results in low or negative growth levels. Clogged mind with less creativity Having your mind stuck on a particular issue usually blocks all sorts of ideas. If you’re constantly overthinking about petty issues in the business, then you’re bound to be less productive. Overthinking plays with your ability to be creative and produce new content for your startup to grow. There are slim chances of growth if you can’t think of new strategies and game plans to improve your productivity and growth. Loss of business opportunities Overthinking leads to you losing important and futile business opportunities for your startup. The inability to decide whether a certain partnership or contract will be beneficial for you will leave you facing a loss. What you need to do is accumulate all the possible beneficial business opportunities and develop your startup. Pessimistic disposition Someone with determination to grow their startup has a sense of responsibility, and they’re quick with decision making. They’re optimistic. If you’re stuck in a loop where you’re procrastinating with low levels of productivity, you’re bound to be pessimistic. Pessimism is a negative trait to have when conducting business, and you need to have a positive outlook and take upon every challenge. Overthinking stops you from becoming a good entrepreneur. Your hyper-planning and excessive thinking only waste your time and resources. Learn how to be comfortable in making your decisions and then committing to them. Otherwise, your overthinking is likely to kill your startup as it rids you of all the opportunities to grow! References: https://reaganpollack.com/2019/08/why-overthinking-kills-your-startup/ https://medium.com/@stevenmills/overthinking-leads-to-procrastination-b22367634ace https://theladiescoach.com/read/overthinking-killing-business-mojo/ https://topyaps.com/6-deadly-effects-thinking/ https://www.quora.com/What-are-the-harms-of-overthinking-about-something  It's a new decade, new year. There must be new ideas for new ways to do things. As many get convinced and excited about their new ideas, they form their new companies, often without a plan or a roadmap.
Importance of a Road Map for the Startup A business should never be started without a destination or exit strategy. A roadmap could lead you to the goal. This roadmap defines company objectives, policies, values, expected direction of growth in the form of chart, strengths, weaknesses, threats, and prospective opportunities. This roadmap can be used as a guideline for investors and customers as well. The road map gives a base for formulating policies and strategies for product marketing and launching. It helps in analyzing and reviewing future threats and the current situation of the market. Roadmaps help in setting goals and assist in implementing the rules and policies with efficiency. The roadmap should be timely reviewed by the founders and directors of the startup and can be altered if needed. Roadmaps should also define in detail the role of every department in the startup and expected growth of that department to help human resources in the future manage their expectations. The road map of the startup consists of short term and long term goals and timelines set by the founders. Other details such as how the resources are allocated, what are the sources of the capital, contingency plans, how to penetrate the market, and compete with the competitors are also defined in the road map. It could also help you figure out your burn rate to ensure your startup doesn't run out of money anytime soon. How to Develop a Roadmap A step by step guide is discussed below that will help in developing a practical roadmap for the startup. Identify the Problems The first most important step while developing a roadmap for the startup is to identify the existing problems prevailing in the market. Because once these problems are identified, it gives you a big picture of the overall market, and it will be easier to formulate strategies to avoid such problems while entering into the market. Target the Audience Formulating effective marketing strategies and targeting a specific group of audience according to the nature of the product is the second important step. It can be done by delivering high-quality content that appeals to the target audience about the product and the startup. Hiring Professionals Professionals from different fields such as finance, law, IT, etc. should be hired so that they can take care of the matters related to their fields. Because one single person cannot be an expert in all fields at the same time. Define Mission, Vision, and Strategy Define the startup’s mission vision and business plan in detail in the roadmap. This will serve as a ground for building up future business plans and strategies. These statements can be reviewed and altered from time to time, as and when needed. Conclusion The roadmap provides a line of action for the startups. Therefore, it is always important to create a roadmap before starting the business and entering into the market. It will always help in making better choices and decisions by the founders. It will always guide the audience to understand the aims and objectives of the project. References https://www.inc.com/drew-hendricks/5-steps-for-creating-a-roadmap-to-startup-success.html https://smallbusiness.chron.com/make-business-roadmap-22538.html https://maxmyprofit.com.au/blog/why-creating-a-roadmap-is-crucial-to-business-success/ https://www.jibility.com/startup-strategy-roadmap/ https://www.forbes.com/sites/maryjuetten/2018/07/03/twenty-tips-for-startup-success-part-twelve-develop-a-roadmap/#6e3be17419a3  Have you been bootstrapping your company? There are many ways through which you can bootstrap your business for your valuable resources and finances. It is one of the easiest ways to get started with your business if you have had savings. Of course, there were other examples such as Tim Ferriss, who used his credit card debt to bootstrap his business. However, only do the credit card option if you have a tremendous amount of confidence in your hustle and your new company. However, as your business grows and scales, you should probably consider injecting fresh capital into it.
This process takes time. You cannot raise your money and business funds the very next day you have started your business. You need to be patient enough and give time to your business. You need to make sure that you think about the long run of your company. And that is why you need to read every clause to ensure the policies. Make sure that you follow the below-mentioned tips to maintain your patience for fundraising and bootstrapping. Tips for Maintaining Patience for Bootstrapping and Fundraising: As fundraising and bootstrapping is a challenging part of businesses. Therefore, a high level of patience is required at every step of the business process. You may find it challenging to convince investors to fund your business. This is because investors look for well-established companies to invest in rather than taking a risk by investing in unproven startups. Therefore, ensure these tips and maintain patience. Align With the Investors: Always make sure that you align your business with the right investor. You might find an investor even after months or years but maintain your patience. Do not stress out. Give time to the investors to think about your company as well. After all, you don't want to appear too desperate and codependent. Do Not Get Frustrated So Quickly: Now that you have a business to grow, try to manage stress, and your level of frustrations. This is because you might make a wrong decision or deal if you are stressed. Give time to analyze the investor and then make a final decision. Always Set A Clear, Focused Plan: You must set a focused plan before starting with the fundraising process. This will help you to convince your investors and set a positive impression on the venture capitalists. Do not just make a deal with anyone who offers. Take time to make the right decision. Set Achievable Objectives: Always set realistic and achievable goals. Always talk about the future objectives clearly with the fundraisers. This is because the fundraisers are mainly concerned about the future profitability of the company rather than the current state. Never Over Promise for Anything: This is one of the biggest mistakes that company owners make by being impatient. Only promise about those outputs that you are sure about. Do not over-promise on things that you cannot deliver on time. Conclusion: You cannot achieve all the goals and objectives together. You need to be patient and try to focus on one goal at a time. Be wise to choose the right fundraiser. The right funder will appear given time and patience. To reduce your burn rate while maintaining your patience, cowork with us! Check out our space by scheduling a tour today. REFERENCES: https://www.forbes.com/sites/maryjuetten/2018/08/09/twenty-tips-for-startup-success-part-eighteen-be-patient-when-fundraising/#69f315756892 https://www.entrepreneur.com/encyclopedia/bootstrapping https://www.entrepreneur.com/article/296595 https://www.entrepreneur.com/article/254217 https://www.thebalancesmb.com/how-to-bootstrap-your-small-business-from-the-ground-up-295160  A huge amount of people, no matter young or old, are joining the startup community. However, it doesn't matter the age; we all have different experiences that could help each other.
For those who are new to the startup world, it could be difficult to navigate. One does not need to reinvent the wheel or to navigate a system that has been crossed by others already. Here are some other reasons why do you need to get help and advice for your startup. Preparation to Confront the World In today's day and age, there is an entire crowd of youngsters who have such innovative and creative ideas that one is unable to understand the failure of their startup. The biggest reason why many startups face a downhill is that they are being led by young men and women who are not aware of what the outside world has to offer them. They enter the world with a fresh mind that yet has to learn the ways of the world. Having a mentor prepares them with what is ready to tackle them down. Having a controlled and refined vision helps in making a startup successful. Self-Awareness Oftentimes, one cannot assess oneself clearly. The decisions you make may be wrong, and you may not realize that until someone tells you. A mentor can tell you about your mistakes. If you lose the right track, a mentor can hold your hand and take you back on it by guiding you. However, one needs to be humble to take criticism from others. Financing When it comes to financing, it can be challenging to start a business with huge amounts of profits from day one. One has to invest a tremendous amount of money for the business to reach a place where one can call it stable. Mentors do not only help with advice but also financing a company that can grow in the future. This not only builds a relationship of trust but boosts one's confidence, which is needed to run a newly formed business. Growth As a business starts running, it cannot lead on with the same idea with which it started. In order to stay competitive, the entrepreneur should be aware of different ways to keep the customers loyal and develop a strong name in the market. The mentor is not there so that you can get your business into running but also for how one should be recruiting new employees to the organization. Strategic Planning When you start a business, you invest your own money and time. In order to be successful and not have your time and money wasted, you need to have guidance. Experienced people know business strategies that can help you earn more than you invested. Only a skilled person can tell you this. Awareness of Future Hazards A novice will not have the same knowledge as an expert. A person with experience will have learned from downfalls and mistakes. He can guide a newbie what mistake not to make and how to remain wary of possible dangers. An early warning can save you from a disaster. There are countless reasons as to why a mentor is needed, and to be formal, it might not even be the most formal mentorship process. In a coworking space, there are lots of people who have already had startup experience. To save your time and money, it would be the best idea to find your next mentor or just someone to bounce ideas with at a coworking space! Take a tour today.  Experiments for startups are necessary in the fast-paced world. Experimentation requires business owners to be open-minded with the results. The results will then suggest what to do for products, marketing, customer engagement, just to name a few. It helps business owners to set their planners by establishing relevant goals and then follow them smartly. These experiments in startups allow them to run at low costs and stay agile.
As businesses are short of funds in the initial days, that is why these experiments are the best solution. These experiments should tell you who your customers are and what do they want from you. You get to know their needs, which will give you an idea of what to produce next. These are the basics but pivotal to running a business. That is why we will discuss some reasons why experiments make startups cost low. Experiments will also help you to understand your audience and derive the right insights. These are the reasons why you should run experiments with everything you do: Reasons Why Startups Cost Low: Inexpensive experiments that are employee-driven tend to be more innovative. These experiments bring positive outputs and establish the company's position. Results also convince many investors to fund the business to that some real action can take place. Get to Know the End Users: You might have started your business, but you are still unclear about who your actual end-user is. This happens with most of the entrepreneurs. They fail to understand their final customers. That is why these experiments include such activities that tell you more about your end-users. These experiments are low cost, but they are building the roots for your business. Provides an Understanding on how to Invest Innovatively: Businesses always figure out expensive ideas on how to invest innovatively. These ideas, at times, fail due to a lack of information about the real market demands and emerging trends. That is why low-cost experiments help entrepreneurs to invent habit-forming products that generate a high level of need among the customers. Generate an Insight to Work On: Without insight, there is no purpose in the business. Insights can never be driven out by investing a huge amount of money. You can only figure out insights by ensuring low-cost experiments. These experiments tell you to capture the need and then work on that. They give you an idea of what can be the next emerging need of your customers. Always Make Improvements to Grow: The inexpensive experiments also tell you a way how to grow. They tell where you went wrong in your implementation process. You can easily correct yourself by making rapid improvements. You can only get to realize if you conduct a small experiment before the final launch. That is why businesses always test their products before launching them to the end customers. Conclusion: Experiments are never a waste of time for your business. You might think like that, but you do not realize that these experiments set the basics for your business. That is why experiments are the most important part. If you have zero knowledge about your customers, then there is no use of your business objectives. REFERENCES https://www.startuprocket.com/articles/how-to-conduct-free-and-low-cost-experiments-to-validate-your-new-business-idea http://news.mit.edu/2014/michael-schrage-book-business-experiments-innovation-1007 https://www.funnelenvy.com/blog/importance-experimentation-running-lean-business/ https://hbr.org/2011/03/a-step-by-step-guide-to-smart-business-experiments https://www.jstor.org/stable/j.ctt9qf969 |
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