How to Save Money Running a Startup
October 12, 2008 Office Insight
You used to hear that 95% of businesses fail within the first five years. Despite more recent statistics that reveal the odds aren’t quite that bad, every startup still needs to be smart about how they spend their money. In fact, in economic times like these, all businesses could benefit from some money saving tips.
Early this year, Jason Calacanis, CEO of Mahalo.com (a human powered search engine startup), wrote a blog post titled: How to save money running a startup (17 really good tips). I’ll give you the quick list below (the list now numbers 18 after he added an additinal tip ) but you may want to read the full post for the explanation and context of some of the tips. The list is definitely more geared towards the Silicon Valley “tech” start-up but every business should find elements of the list relevant.
1. Buy Macintosh computers.
2. Buy second monitors for everyone.
3. Buy everyone lunch four days a week and establish a no-meetings policy.
4. Buy cheap tables and expensive chairs.
5. Don’t buy a phone system.
6. Rent out your extra space.
7.Outsource accounting and HR.
8. Don’t buy everyone Microsoft Office.
9. Use Google hosted email.
10. Buy your hardest working folks computers for home.
11. Fire people who don’t lover their work.
12. Get an expensive, automatic espresso machine at the office.
13. Stock the fridge with sodas.
14. Allow folks to work off hours.
15. Go to each of your vendors every 6-9 months and ask for 10-30% off.
16. Don’t waste money on recruiters.
17. Really think about if you need that $15,000 a month PR firm.
18. Outsource to middle America.
Notice number 4 … the chair part … not the table part
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