Introduction
Lean is a term that gets thrown around a lot these days, and it can be a little confusing. The concept was first developed by Toyota to describe ways that companies could operate more efficiently and profitably. Lean manufacturing relies on maximizing resources, minimizing waste, and inspiring employees through a culture of continuous improvement and innovation. In theory, lean should apply to all kinds of industries—not just manufacturing firms—but it’s particularly relevant for startups that have limited resources but still need to make sure their operations don’t become inefficient over time. After all, startups constantly try new things to figure out what works best for them.
Avoid spending too much on office space
As you begin to build your startup and take on employees, it can be tempting to rent a big office space. But keep in mind that bigger doesn’t always mean better. In fact, by renting smaller offices (or even sharing space with other startups), you might save money and gain more mobility at the same time.
Another option to consider is co-working spaces like WeWork or Industrious, where you can rent desk space for as little as $450/month (plus a fee for utilities). These spaces provide amenities such as meeting rooms and kitchens—and often offer perks like free coffee or beer! You could even find someone who will let you use their kitchen table if there aren’t any other options available where you live
Don’t go overboard with staffing
If you’re a small company, don’t go overboard with staff. You can do everything yourself, or outsource some things to consultants. If you’re a big company and have lots of cash on hand, don’t hire someone for every problem or task—it’s not worth it. You probably won’t need more than 10 people in your startup at first, even if you’re aiming for 1 million users (and once again, this number will vary depending on the type of business).
Be judicious about outsourcing work
Outsourcing can cost a lot more than you expect. If you’re just starting out and don’t have much money, it’s probably not the right decision for you. And even if you do have enough funds to pay someone else to do the work, there are other pitfalls:
- It takes time. When hiring an outsourced worker or team of workers, you’ll need to spend some time finding them and getting them on board with your project before they can start working on it full-time (or part-time). This takes time away from your core business activities and might delay launch dates by weeks or months if things go badly—and remember that anything that delays a launch date may mean losing money in advertising or other expenses associated with getting the word out about the product or service being offered through a lean startup effort—which brings me back to point #1 above!
2 . Training costs money too! Because outsourcing usually involves hiring someone who isn’t familiar with what exactly needs doing as well as how best approach solving those problems within set parameters like budget constraints for example , training could easily eat up half of what was saved by outsourcing rather than doing everything internally which means even more delays …
Don’t buy stuff you don’t need
Buying new stuff isn’t always necessary. If your business is just starting up, you’re probably not going to need the latest and greatest equipment right off the bat. The more you buy now, the less money you’ll have to spend on essentials like paying employees or rent.
Additionally, if you don’t have a lot of cash flow yet, it’s important that every purchase gets used regularly (or at least occasionally) so that it doesn’t go to waste when there’s no one around to use it. This means buying things like office chairs for people who sit in them all day long (instead of standing desks) and buying software licenses for each employee as soon as possible—even if this means hiring people before all positions are filled!
Make use of free services
- Use free services. Some of your startup’s key services can be provided for free, saving you money until you have a business model in place. For example, Google Analytics provides excellent data on how people are finding and interacting with your website, while Salesforce offers an integrated CRM that allows you to manage all communication between customers, partners and employees.
- Find out what’s available. One way to find the right kind of service is to look at similar companies that may have already tested them out themselves—you might want to share a coffee shop or use their office space when they are not using it (the perks!). Alternatively, try searching online for “free services” or “free products”—it never hurts to ask!
Pay bills ahead of time when possible
Paying bills ahead of time is a great way to save money and avoid the hassle of paying them. It will also help you avoid late fees, which can be quite costly. If possible, pay your credit card bill in full each month to avoid interest charges.
Use credit cards to build credit, but avoid carrying a monthly balance
Credit cards are a good way to build credit, but you should avoid carrying a monthly balance. If you can’t pay off your card in full each month, it’s best to use cash or debit instead. You may want to consider using your credit card for emergencies (like medical bills), travel and online shopping as long as you pay off your balance once every 30 days or less.
Make assets work double duty whenever you can
When you’re working on a lean startup, every resource has to work double duty. That means using your car for work purposes and not just for personal use—in fact, it’s even better if you can get reimbursed for the mileage on your car or for parking costs at the office.
Use an office table for more than one thing: it can be a desk when you need to do some typing, but during lunchtime it can also function as an eating surface or place to take an afternoon break with your co-workers.
Use your laptop both at home in front of the TV and at work on a desk—it’s good practice to keep it charged up wherever possible so that there’s no downtime between tasks when switching locations (and also because recharging is easier than finding somewhere else).
Invest in one phone number that allows calls/messages from both friends & business contacts; this will save time since fewer people will have different numbers stored in their phones’ address books!
Your business can be lean but not mean!
Don’t be fooled into thinking that lean startup means mean. Lean manufacturing is not about doing things cheaply, cutting corners or cutting costs. Lean startups are not the same as cheap startups.
The goal in a lean startup is to have a clear understanding of your product and customer before you waste time and money building it. You build only what actually helps your customers solve their problems better than the competition at a price that makes sense for them.
Conclusion
That’s it! You’ve read through the entire guide to how to run a lean startup. I hope you find these tips helpful in making your own business more efficient and profitable. Remember that most startups fail because they don’t have enough cash on hand when times get tough, so make sure that you’re doing everything possible to increase profits while minimizing expenses. If you have any questions about this article, please leave them below in the comments section!
