Sunday, May 31, 2015
One of the most common problems that tech startups encounter when entering the field is the long list of extra costs that weren't accounted for on the initial budget estimates. The best way to offset these unexpected costs and keep your new business out of the red is to reduce overhead whenever and wherever you can.
"The best way to offset extra costs is to reduce overhead whenever and wherever you can."
This approach is applicable in at every level of the company, from curbing pay scale at higher ends of the company hierarchy to implementing novel IT solutions that reduce costs without hindering performance. It's becoming increasingly apparent that a tech company's success is often defined by how many of these cost-saving opportunities are successfully implemented.
Hire multi-talented personnel to keep your headcount to a minimum
A recent article in Forbes pointed out the value of hiring individuals for your startup who are veterans in the industry. Being able to lean on the experience of tech specialists who have overseen previous companies from start to finish is an invaluable resource. Furthermore, there's a good chance that these hires have experience wearing multiple hats and are capable of filling multiple roles in your startup.
Taking full advantage of the abilities of one multi-talented employee is often more cost-efficient than evaluating and training less experienced specialists. After all, paying one employee a bit extra to expand his or her role is also less riskier than making two or three more additions to your staff.
Recognize opportunities to reduce fiber costs
One of the biggest challenges that tech companies can face, especially those operating on-site data centers, is affording the cost of fiber-optic installations. These cables provide Internet connections to the data center with the speed and reliability your company needs to be successful, but their high costs turn facility-wide deployment into a logistical nightmare.
Thankfully, the high-speed connections can be delivered over copper wire for short distances. ITProPortal pointed out that paying for fiber cables to be extended to the local street cabinet is far cheaper than the cost deploying fiber directly to the premise. The final length to the facility can be supplemented with copper wires and a fiber to Ethernet solution that allows the connection to travel between one medium and the other.
Diligence is cost-cutting is a prudent goal for any startup.
Keep a close eye on successful competitors
Don't be shy about studying the approaches and strategies of startups you'd like to compete with. You'll have to adapt their solutions to fit the unique needs of your company, but evaluating strategies that have proven to be successful is a great way to brainstorm answers to your own company's biggest problems. Likewise, researching the spending habits of unsuccessful new companies offers insights into purchasing patterns to avoid.
Perle has an extensive range of Managed and Unmanaged Fiber Media Converters to extended copper-based Ethernet equipment over a fiber optic link, multimode to multimode and multimode to single mode fiber up to 160km.