10 Simple Themes to Save Money for Your Company in This Never Ending Recession - Part 1

Over the next few weeks I will write about several ways for saving significant money for both getting your new venture setup, as well as reduce cost for your on-going ventures if you are already passed the starting up phase:

1. Seek up-and-coming outsource services versus traditional methods.

If you go with a smaller, hungrier, more agile service providers, not only you save money but you usually get better service and in most cases better end results. This applies to getting your website designed, getting your logo designed, getting a video promo done etc. Service providers such as 99designs or a market place for outsourced talent such as up-work are great examples where you can find smaller service providers that are motivated to prove themselves in the market and therefore can provide you great service at minimal cost. So make sure to research the latest and newest service startups, where you tab into the cost effectiveness of the global economy.

2. Outsourced Marketing and Sales – do it yourself.

Being an entrepreneur myself and being a venture partner a VC fund earlier in my career, I have seen companies blow money in specialized marketing and sales services early on. My advice, avoid those expensive services. In this day and age, tell your own story. Find the right press contacts, use social networking and reach out to people. You will be amazed how effective you can get and save yourself a huge cost item. Same thing with outsourced sales. Your sales team needs to live and breath your products, otherwise, it comes across as a cheap sales pitch. Don’t outsource your sales and marketing, you will be loosing more money that way.

3. Information Technology costs can almost always be brought down to a fraction of what you are paying today.

IT industry is changing so quickly, within 6 months, your newest phones are no longer good value, your PBX is already outdated and your Internet connection is already too slow for the amount you are paying. Make sure you visit these cost items periodically, maybe a few times a year to see if there are any new technologies that are out that can slash your cost. A few examples are: moving from a T1 based phone system to a VoIP based phone system, having a in-house PRI PBX versus a hosted PBX or an IP PBX. All of these would save you opex on an on-going basis and will add up over time. Here is another example which is also a plug for our product: we use our Truffle Internet bonding device to bond DSL lines. So we get fiber like speed in our office for dirt cheap additionally we have amazing VoIP quality because of the quality of service features of our bonding device, in other words, we eat our own dog-food .

4. Avoid recruiters.

I believe there are times where a professional recruiter can add a lot of value, but it is not during the early stages of a company. Linkedin is your best friend. Especially in this 9% plus unemployment world we live in, I am not sure if even larger companies need to pay for recruiting.

5. Payroll solutions – use services by banks.

During our earlier years, many times we were approached by service firms that provide services that “take care of all your HR and payroll needs”. Today most banks would provide a large portion of those services, especially the payroll related items for minimal cost. We us Bank of America and have been pretty happy with them for the last 7 years.

In my next post, I will talk about some useful software as service tools that can save you money, some actions you can take that will save you in your office rent, some advice regarding legal fees and  a few other pointers. Until then, please let me know what you think about the 5 items I listed here…

Cahit Akin, CEO, Mushroom Networks, Inc.

Mushroom Networks is the provider of SD-WAN (Software Defined WAN) and NFV solutions capable of Broadband Bonding that enables self-healing WAN networks that route around network problems such as latency, jitter and packet loss.

https://www.mushroomnetworks.com

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