A couple days ago, I had a fortune to meet someone who has been active in the startup domain. A not-so-young entrepreneur in his mid-forties, embarked on his fourth business venture with a new business startup idea. No! I am not describing Rastogi from TVF Pitchers, but sure, you can use him as a frame of reference. Nevertheless! The gentleman in question had the courage to launch three startups and just when I was about to refer him to Pick My Story’s last blog, he dropped a wisdom bomb on me.
“Managing operational Cost is very important!”- Real Life Rastogi!
Said this humble man before marching off on his journey to the his next startup. So I started wondering how important is managing the operational cost? I mean, I am sure this wise entrepreneur have learned this through a heap of unpaid bills and receipts. But for the first timers like most of you readers, it is very crucial that you actually understand that in time. And if you don’t, well then there is always the other option this real life Rastogi took. Although, before that time comes, lets take a look at how managing operational cost is crucial and possible.
Why such a Hullabaloo about Operational Cost?
Imagine that you have a startup idea. Now picture yourself setting up an office and finding people whose interests are aligned with your startup. Next step will probably be looking for an office and I am sure you can just picture yourself running a full-fledged business venture in a short time, right? You are purchasing new stuff, expanding your infrastructure and striving to make your startup look like a big hit! Now close your eyes, take a deep breath and picture yourself figuring out where it all went wrong. Let us enlighten you! You did not account for operational cost and now your ability to compete in the marketplace has been impaired. You see the connection? The rate at which you expand needs to be either justified by your revenue or savings. Growth does not mean sustainability, because even if you are growing your startup still has a razor-thin margin! That is where most of the promising business entrepreneurs fail when they launch they venture.
How not to be like ‘Them’?
Well the easiest answer to this question is to manage your operational cost and this is how you do it.
1. Share your Burdens: Everyone knows that setting up a business is a pain in the arse, literally and figuratively! You have so many things to look after, getting business off the road, setting up a revenue stream, expansion plans and hundred other things which nobody will help you with. The least you can do, is to share your burden by sharing a work-space with other people. There is no shame in doing so, considering that you may very well run out of money soon if you don’t reduce the infrastructural cost you are incurring.
Technology Integration: The best part of technology is not that it makes everything cooler and faster. The most prominent trait of technology that it connects different aspects together. For instance, mobiles connect people to people, computer connect us with the machine world. The more you integrate technology oriented solutions such as marketing tools, automation tools, etc. in your business, lesser will be your operational cost.
Get rid of ‘Extra Fat’: We all know that ‘Fitness is in the air’! Everyone wants to loose fat, get fit & shredded. Getting fitter and slimmer makes your body less susceptible to diseases or physical problems. Why not show the same courtesy to your startup? Keep it lean and mean by getting rid of the things you don’t need. Like the services you don’t have any use for or charges you don’t even remember what they are for.
When it comes to setting-up a business, it is never possible to not make any mistakes. What is possible though, is to reduce the risk of making them. Stay tuned for more such tips which will help your startup and of-course, prevent you from being Rastogi Ji!
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