How can Startups cope with Rising Costs
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Fremont: With the current spear of rising prices, it has become difficult for entrepreneurs, especially startups, to sustain with their existing budget. Even they are feeling the sting of a weak currency. With the prices rising in double digits, business owners across the industries are struggling for their survival. It is not worth passing on higher costs to customers emboldened by the great recession. And with every time you cannot gift them a price hike in your products expecting them to happily deal with it. However, to cope with this rising prices, we bring to you few strategies that might help to sustain in this inflated market. Extend your Pricing Limit Your's may be a great product with great benefits, but during recession and inflation hitting the market at the same time, everybody wants to take a hop on the low priced goods and services to save for other utilities. You can introduce new, low-priced products and services for your customers to keep them glued with your company. Keeping a range of prices will always ensure that your customer does not run off due to their in-competency in purchasing power. Take Steps Gradually Do not step in the elevator, instead opt for the ladder. Be kind to your customers and increase the prices gradually. This may not pinch them so badly as doing it at a time would. Communicate with your customers, and if required explain them the immediate need of doing so. This might lighten the situation and customer may still be loyal to your company. Go Tech-Savvy In the age of technology, cost-cutting can be done by conducting meetings online through Skype or other sources, instead of face-to-face. This might even reduce the requirement of office space and cut off the rent to be paid. You can even take the help of millions of mobile apps build specifically for startups and entrepreneurs. This will reduce the cost of operations. Go Global With a weakened currency, the chances of selling your products in a foreign market might be much higher. Expand your market globally, but remember to do a proper market research before entering into any. This might loosen your tight budget and help you grow in other markets than domestic. Payment Options Try to find better payment options from the suppliers, i.e., increased credit period, installment facilities, and reduced cost in terms of bulk purchases. You can even ask for discounts on cash purchases.

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