How to reduce project establishment costs?

How to reduce project establishment costs?

Many people dream of launching their own projects, and they think that they need a large amount of capital to launch it, but this is not true, as the largest companies started with a small amount of capital, and it increased over time.

The important thing is to rationalize expenses, and to know how to manage costs, and there are things that help reduce the costs of establishing a project, including:

First: the use of technology and the Internet.

There are many costly things that we can do without and use technology instead, to save money, time and effort, for example:

1- It is possible to dispense with manual records and printed invoices and use a computer instead, and instead of printing tasks for employees, you can send them to them on WhatsApp.

2- Publicity and advertising: Traditional advertising methods cost huge sums, and social networking sites can be used instead, as they are cheaper and fulfill the purpose.

It is also possible to take care of creating a website and improving its seo, and targeting specific search words. This method will have a better effect than television ads, although it is cheaper.

3- Traveling for meetings: Often the owners of the company need to travel in order to meet with the owners of other companies, suppliers or employees, and it is possible to use meeting programs such as skype, zoom cloud meeting and other programs and save the price of travel and hotels.

Second: buying used things.

There are many places that sell used things, and they are in excellent condition. In order to reduce the costs of establishing the project, it is possible to buy used computers, as well as buy used office furniture and agree with a carpenter to paint it and make it look new.

As well as the purchase of some necessary equipment and machinery used.

All these things will not affect the production but will save a lot of money.

Third: Buy only essentials.

One of the mistakes that companies and projects owners make is paying attention to luxury matters and spending a lot of money on them. They spend huge amounts of money on office furniture and decor, and renting a luxury apartment in the most prestigious neighborhoods. These matters are of no importance at first.

Therefore, in order to reduce the costs of establishing the project, it is necessary to limit itself to the necessities only, as it is not the luxurious office that will bring customers, but rather the quality of the product.

There are cases in which appearance is necessary, such as decorating offices or furniture stores and factories, but in absolute terms these appearances are not important.

Fourth: Employment.

The salaries of the employees and the wages of the companies contracted with in order to finish some work for the project are a major problem, and the project owner spends a lot of money on them.

These alternatives can be used in order to reduce the costs of establishing the project:

1- Employment of trainees.

There are hundreds of graduates who are willing to work in exchange for training. Although their experience is little, they are enthusiastic and have creative ideas. They will do everything in their power to obtain an experience certificate or a future project appointment.

2- Microservices and Freelancer sites.

Instead of contracting with a company for the work that you need once, such as designing, making websites, or others.

You can use microservices or freelancer sites, as you will find the price much lower, and the quality is no different from the major companies.

3- Hiring remote employees.

Today, many companies hire employees remotely, because their salaries are lower in addition to the lack of insurance, and also because this saves electricity and company equipment, and the employee feels comfortable and free, which motivates him to work and be creative, as it is a win-win deal for both parties.

Fifth: Successful management and a solid plan.

There is no doubt that successful management has an important and effective role in reducing the costs of establishing a project through calculating the budget, developing an accurate plan and following it, setting goals, and looking after financial decisions.

These are some of the things that will contribute to reducing the costs of establishing the project, and it is worth noting that each project has special ideas that help reduce its costs, but these are general ideas that are suitable for all projects.

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