How to save money running a start-up – tap talent don’t squeeze it
Jason Calacanis’ company Mahalo includes hundreds of interesting user submitted ‘How To’ guides. The team saw a gap, and created their own list of 17 (and growing) tips on how to save money running a startup.
It’s a good read, and eminently practical. The thrust of the tips are to save money on things that aren’t important, but to spend on the things that are important, particularly those that make staff more productive (which includes making them happy). For example, Jason says “buy cheap tables and expensive chairs” – tables are a commodity but good chairs make people more productive and effective. He also recommends buying extra screens for staff, which makes them more efficient at their work, and buying home computers for those who want to work extra hours at home. If staff are salaried, buy them lunch so they don’t leave the office, and get an expensive automatic coffee machine to keep people from wasting time going to the local coffee shop.
Some have suggested that Jason’s tips suggest a total lack of balance, and certainly all of this can be taken too far. However as long as people can go out to enjoy some sunshine when they feel it’s appropriate, this all makes sense.
The one tip that I absolutely don’t agree with is:
“Go to each of your vendors every 6-9 months and ask for 10-30% off. If half of them say yes you’ll save 5-15% on fixed costs. People will give you a discount if they think they are going to lose the business.”