Thinking of starting a new business is no doubt a great idea, but when you start implementing it in the real world, it requires immense strength, optimism as well as passion to confront the hurdles that come at every stage of idea implementation. Small business startup loans help to minimize the funding pressure as operating expenses can be met easily along with creating cash reserves which can be utilized during emergencies.
After passing through the various stages successfully, the question may still remain: how to bifurcate the funds to reap the maximum benefits.
Here are some solutions for entrepreneurs to smartly manage their spending:
Ramifications of irrational spending
According to NUS Enterprise’s Growth Dynamics of High-Tech Start-ups in Singapore, more than half of the startups are operating at a loss. Amidst this, 24% of the 530 startups surveyed in 2016 recorded no revenue, whereas 29% were generating a satisfactory amount of revenue, but at the same time, they were burning more cash. In order to avoid cash deficits, startup business loans from private money lenders are considered for the smooth functioning of operations. Additionally, 23% of the startups recorded positive cashflows and the rest 27% were managing to generate enough cash for sustainable growth. There you need tech hacks such as moving the business operations to the cloud and using One Online Workspace such as SkyOne for maintaining business applications. These solutions help you to manage spending from the very beginning to be a consistent performer and heading towards long-term survival and overall development.
Go for upgradation, not for replacement
To remain a high-tech startup, be it a small, medium or a large conglomerate, everyone requires a trending technology and upgrading the employees’ skillset as per the latest models can be a budget breaker. Where owning a supercomputer can be too expensive, low cost and outdated systems can be slow and painful for the organizational progress. According to E&Y’s 2018 Millennial Economy report, 38% of the respondents suffered from the lack of funds in the initial days of the business. This becomes the major reason why startups shut down within just a couple of years. This is why one needs to opt for tech hacks that can introduce an alternative solution to fulfill the requirements of the organization at a low cost. For instance, for slow running computers, upgrading the memory or adding a larger and faster hard drive, help applications run more quickly and efficiently.
Get a virtual personal assistant
Whenever any enterprise set goals for higher sales and ROI, the first thing that is considered the most is cost-cutting. All this involves cutting down the day-to-day office expenditures, controlling expenses on other aspects, and laying off workers as the last resort. To avoid these concerns, startups can appoint virtual assistants in the very beginning, as it is one of the best tech hacks to optimize the outcomes at a lower cost. Virtual assistants can easily work for long and without showing resistance in comparison to humans, which ultimately boosts organizational profitability and ROI. The assistance from licensed moneylenders can be considered for using Virtual assistants in the business operations as they provide small business loans through online platforms for quick dispersal of the loan amount.
On the other hand, business experts have evaluated that installing VAs in business can achieve up to 40% savings in business expenditures. Therefore, the smart virtual assistant market is projected to grow at a CAGR of 26.29% to reach US$12.383 billion by 2024 from US$3.052 billion in 2018.
Thus, technology is the equalizer for small and medium scale enterprises to mark their effective presence in the marketplace. Choosing adequate tech hacks wisely will not only help the start-ups to attain short-term goals, but it will also ensure their sustainable growth and overall development.