Setting up a business online may be cost-effective especially during the launching period but it can be painful if cannot be managed effectively. These days, many companies can take advantage of the “work-from-home” option to their employees to lessen the operation cost. And in some cases, many companies hire remote workers especially when the work can be done online and if interaction would not be cohesive.
For the start-up business, administrative tasks may be handled in physical office as there is paperwork involved. Things like government compliance, payroll and employee benefits and finance may be needing a space.
Talking about the trends, let’s discuss some of the practical approaches on how businesses especially start-ups can reduce operation cost.
Cloud Computing. Instead of buying physical servers, why not use cloud computing servers like Amazon, Google, etc. These tech companies specialize in making sure that your data is safe. Major advantage is that there is a little downtime expectation and you can scale well when your business grow. Additionally, the use of Software as a Service (SaaS), Internet as a Service (IaaS) and Platform as a Service (PaaS) is prevalent among companies as they can easily use platforms, applications or infrastructures offered by the providers.
Outsource projects. It can be outsourcing the whole project to another firm that specialize in such project – as an example, you are not hiring IT people as your regular employees to deliver a service for you. You may want to hire them as contractual or on a project duration basis. You can also hire a firm that can cater your need for specific projects.
Automation. Assess whether or not some of the manual tasks can be done by a simple automation tool available online, or if you can cope up with a software solution that can potentially replace the current process.
Integrate. These days, data integration is a trend if you have regular transactions with your business partners or vendors. You do not need to manually sending data via email everyday. Instead, data can go to the other end seamlessly in a real-time manner. For example, you have outsourced your payroll to another company. You may want to check if they have some sort of integration where they are capable to accepting data from your side without a need to send them timesheets, employee details and other information manually.
Robotics. You may have heard this already as it rings the bell in most of the companies. When you sometimes contact customer support, you will not be able to talk to a real agent but a technology solution that is able to understand what you are saying and provide appropriate answer. You may need to check wether your customer support can be handled by a technology as you may be able to save cost in hiring support people.