AT EVERY stage of running a startup, whether it is before or after receiving funding, finding strategies to save money is key to business prosperity. In a survey from CB Insights analyzing 100 startup failures, it was revealed that 38% of the businesses failed because of lack of funds or the inability to generate new capital. It is therefore vital to both short-term and long-term success to strategize on budget and find money-saving opportunities whenever they present themselves. This guide will offer 5 tips on how you can save money as a startup.

Be Smart with Product Research

“Product validation ensures you’re creating a product people want and will pay for, so that you don’t waste time, money and effort on an idea that won’t sell,” claims Roxanne Voidonicolas of Shopify. Investing in product research and validation is a key aspect of solidifying the viability and potential value of your product. It can identify aspects of your product that can be amended or cut so that you are only offering something that your audience will want to buy. This will save you time and money, especially as your business expands. Crucially, it will also save on marketing costs as the process helps identify the core demographics for your product.

Be Smart with Marketing

While marketing is an important aspect of any fledgling startup, a mistake many small businesses make is investing too heavily in an expensive marketing campaign. In the age of social media, marketing can be cheap or free through smart use of platforms such as Instagram, Facebook and LinkedIn. Beginning on these platforms will help save costs as you grow your market presence. “Using free marketing in the beginning is a great way to save money for any business,” writes Lisa Collum of Top Score Writing. “No matter what, it takes time to build a business presence online, so start off with the tools that are available at no charge.” It is further important to take time to examine and research marketing strategies of competitors  to examine what does and does not work before investing in an extensive marketing campaign of your own.

Be Smart with Software

A frequently encountered error in the running of any startup is to focus too early on the development of in-house custom software to address any and all tasks. Instead of spending precious time and resources on this, familiarize yourself with the plethora of business software tools that are out there. Many of these applications offer a basic, free option that can be upgraded once your profits increase.  “The best way to strategically cut corners in your startup’s early days is to invest in software that comes with free and premium options,” explains John Brackett of Smash Balloon LLC. “Once your business takes off, you can upgrade to the premium version of the software.”

Be Smart with Office Space

 There are several solutions to the problem of renting office space and the way that it can eat into your startup’s budget. One is to consider sharing office space to save on rent. Not only will this save money, sharing office space with other businesses can help make important connections that will help grow your network. Another solution is to consider asking your employees to work remotely. “Office space is not cheap,” claims Accelity Marketing. “Having employees work remotely can ultimately save you a lot of money that would otherwise be spent on rent, utilities and office supplies.”

Be Smart with Employee Skills

It is a common mistake of startups to hire extensively for every potential need that a business may have. This is an error that can be costly and can harm a startup, particularly in its early stages. Focusing instead on creating a small employee base with a broad range of skills will save money on outsourcing as your business grows. As Matthew Capala of Alphametic writes: “if you reframe your thinking from cutting corners to working on skills that you need to really master before outsourcing, you will be a much better entrepreneur for it.”