Shrikrishna on Cost savings for Start-ups
After taking inspiration from Arjuna, his younger brother Nakula also wanted to start his own venture. One day he met Shrikrishna over lunch in Arjunas Office. He said to Shrikrishna, "I heard you telling Satyvan that financial discipline can make or break a SME business. How true it is. I am starting my new venture with a limited amount i borrowed from Arjuna, can you please tell how I can save on costs so that i can preserve this capital and grow it?".
Shrikrishna said," I am happy to see that you are careful about money from early days and under stand the importance of preserving Capital. So I will give few tricks to save on costs. Startups have no or less employees so you can think of working from home, out of coffee shops or co-working space. It will save your big rental deposits and rent or at l;east reduce it to great extent. You should use social media and mouth publicity to market your products as its free."
"You can ask your employees to get their own assets, its called BYOD (Bring Your Own Device). Study all the tax benefits given by Government to new starts up. Look out for concessional interest loans from banks. Instead of buying software you can consider cloud computing where you pay on monthly basis for only services you actually use. Have a budget so that you don't spend on things which you later regret. Instead of hiring employees you can outsource certain non-core functions like accounting and tax filing. You can make use of free communication systems available nowadays. Working with interns can also save on employee costs as they are ready to work on stipends for experience they get. Learn the skill of negotiation from early days."
Nakula was very impressed, he said, " We can do so many things to save on costs, i am very grateful to you Shrikrishna".