When building a startup’s operations, some things may seem inconsequential, but they can be the difference between your business making it past the five year mark, or sinking beneath the bankruptcy seas. You’ve got to have the right attitude going in. First, you’re likely going to be in debt. Second, your cost-projections will usually be less than actual expenses. Simple infrastructure changes can make a big difference.
What this indicates is that if you really want to be successful, you’re going to have cut unnecessary expenses as much as possible. Some of the most unnecessary costs are infrastructural. These convey themselves both directly, and abstractly. For example, one part of your infrastructure is the employee working environment you create.
The Abstract Angle
A good employee working environment will engender greater productivity. A bad one will do the opposite. If you spend a little more on a good working environment, the additional cost is absorbed by increased productivity, and will very likely be overcome. Take AC, for example.
Some businesses think they can cut costs with infrastructure by neglecting to pay for certain things. Well, this can be true; but it can also impact performance. You may be able to stand the heat, but it may severely tax your employees to the point where they just tread water with you long enough to find another job, then you lose your investment in them.
Your small business needs infrastructural solutions for interior climate control like those available from http://www.texpertsac.com, which offers technicians who: “…are able to provide top-notch service to both residential and commercial systems.” This can help diminish employee turnover through client satisfaction.
A working environment that is not too hot or too cold will make it so employees don’t get tired, but they don’t get too uncomfortable, either. Certain controls even allow for individualized micro-environments which can really make things conducive for your employees—though there’s certainly a limit when you’re starting out!
Some Direct Savings Possibilities
So that’s an abstract example of positive infrastructural efficiency solutions. A more direct example may be to outsource your internal office entirely. BYOD (or Bring Your Own Device) is a new trend which uses the cloud to allow employees their own choice of working environment. Your business can curtail massive expenses this way.
Cloud computing will also save money, as will many IoT applications—but such savings will definitely depend on the size of your operations. Generally, the more autonomous your operations, the least expensive they’ll ultimately be. One of the most recommendable steps is to have a workspace you own, rather than rent.
Think about it critically: if you’re paying $5k a month for 2,000 square feet of office space, that’s $60k a year. In ten years, that’s $600,000. Meanwhile, in five years you could build your own building, and if you spend less than $300,000 on it, you save over the rental option.
If you can secure a five-year loan, even if the business doesn’t work out, you can sell the property you’ve built and still see a profit. Build it right, and you can even sell that property for more than you spent building it.
Cutting Costs And Expanding
Of course, real estate is an entirely different ball-game, but you get the idea. Having top-tier HVAC and other supports will certainly be conducive to such value! What’s important in your first few years of business is to find every way possible to encourage profitability and positive business trends while minimizing expenses.
Expense minimization through cutting costs like rent, energy, and office size are recommendable. But don’t forget the abstract angle: the better tools you give employees to succeed, the better they will succeed. Once you get the infrastructure right, you can even double-down by incentivizing time maximization. Be sure to consider all the angles, and proactively work to streamline your business.