2025-03-17 13:22:36
Investing in rental property is widely considered a reliable way to build wealth, with countless landlords growing robust portfolios and building wealth they never imagined possible. However, countless others have failed on this quest.
For first-time investors, investing in real estate may seem slightly intimidating due to shifting market trends, rising interest rates, and evolving tenant preferences. However, if you navigate the market, rental properties still have a lot of potential.
If you are wondering if rental property is a good investment in 2025, this article is for you. Continue reading below as we’ll discuss everything you need to know regarding investing in rental properties in 2025.
The rental property market in 2025 comes with its own challenges, especially regarding market risks. The days of relying on consistent property appreciation or predictable tenant demand are over. Economic fluctuations, regional market saturation, and changing tenant needs can make it difficult to forecast returns.
For example, increased mortgage payments may affect your profit margins due to rising interest rates. In other places, there is an overabundance of rental units, which can lower rental prices if there are not enough tenants. When you combine that with the increasing competition from websites that offer short-term rentals, such as Airbnb, the stakes seem even higher.
Staying informed, studying market trends, and being flexible with your approach are all necessary to manage these risks. While there is a chance for success, it also requires perseverance and careful preparation.
While rental property seems like the ideal reliable income, it comes with challenges, a major one being management responsibilities. Certainly, collecting rent is one part of being a landlord. Still, there are other responsibilities in ensuring the property is well maintained, the tenants are satisfied, and the regulations are followed. Work can suddenly increase, ranging from maintenance calls at midnight to managing lease agreements. Moreover, landlord-tenant laws and regulations have become more complex over the years. It is 2025, and renters’ expectations have gotten a little more complicated. Today’s renters want amenities of a modern lifestyle, green features, and flexible leasing. Meeting these demands with profitability is challenging.
The good news is that you don’t have to do all this yourself. You can hire property managers or use tech tools to lighten the load. However, it’s about weighing up the costs against the benefits. It may be challenging to manage rental property, but it’s by no means impossible with the right approach.
Simply put, real estate isn’t inexpensive; the amount of initial capital it takes, in many cases, is a huge barrier to entry for most budding investors. With increased property prices, interest rates, and an ever-changing economic landscape, conjuring up that much money seems insurmountable. This is now one of the biggest barriers to rental property investment.
Of course, you must consider not just the down payment- usually 20-25% of the purchase price. Besides closing costs and inspection fees, repairs or renovations may be to prepare the property for a tenant. After all, it’s not all about those monthly rent checks at the end of the day. You should also budget some money in case of unexpected repairs or if the unit remains unoccupied.
Living in an HOA community has its own pros and cons that investors should be aware of. Most of the time, the homeowners’ association handles your regular maintenance duties. All you need to do is pay your homeowner’s association fee, and they will take care of your lawn and plumbing, fix your roof, pick up your trash, shovel the snow off the front walk, handle standard landscaping, take care of all pests, and more.
Many investors, especially those with big or growing portfolios, prefer to have as few obligations as possible, even though some prefer to handle all of this alone. Work with a responsible HOA property manager in Philadelphia to handle management responsibilities on your behalf.
A few HOAs also maintain and offer amenities that various residents can use. One excellent strategy to draw in and keep residents is to provide them with amazing amenities. These facilities could include tennis courts, a golf course, clubhouses, swimming pools, saunas, modern grills, walking trails, and even social gatherings for the entire community. Also, the HOA usually assumes the duty of maintaining and caring for each one. At the end of the day, your investment gains value as a resident receives more amenities.
Unfortunately, the appearance and value of a real estate investment can depreciate over time. HOA bylaws are drafted to help mitigate these negative consequences. For example, leaving random belongings on the porch, maintaining consistently dirty driveways, and having overgrown yards may be explicitly prohibited. Practically, making a mess of one property reduces the value of the entire neighborhood. HOAs help ensure any one tenant can’t trash the entire block.
Living in a HOA involves paying regular dues and assessments. The HOA regularly collects dues and fees to finance its operations and uphold the community. However, some residents might think their money isn’t being spent effectively if the HOA board doesn’t share budgeting objectives and successes. To prevent unpleasant surprises, be aware of your financial responsibilities, the frequency and schedule of assessments, and the fees and fees.
Assessments may be held randomly by the HOA and can be quite expensive. The homeowners are liable for paying for any repairs or replacements that the HOA determines are necessary after an assessment.
For example, the homeowners’ association may determine that replacing the roofs on all community buildings is necessary. The homeowners are required to pay $4,000 each to finance the project. Also, you will be penalized for breaking your agreement if you doze off during the assessment.
HOAs can also have bad leadership, meaning the association is not running as it should. Only those communities where active homeowners involve themselves with the association will keep their leadership answerable. Find these for a well-maintained community. Another good option is a community allied with a reputable management firm. Rest assured, you can be sure that the association would have the advice and assistance it needs to function well in case professionals run it.
Find free courses, mentorship, networking and grants created just for small businesses.
Investing in rental property in 2025 is equally rewarding as it is challenging. While passive income and wealth building might sound very attractive, this must be a decision with one’s eyes wide open. From market risks and management responsibilities to steep initial capital requirements, being a landlord is difficult. These challenges can be overcome by comprehensive research, strategic planning, and support systems.
In other words, matching your investment goals to market realities is ultimately the key. And being flexible about it. Still, one of the finest investments can be a rental property, but it takes work.
The post Is Rental Property a Good Investment? Guide for New Investors appeared first on StartupNation.
2025-03-15 14:11:09
Every great startup begins with a spark—an idea, a vision, or a problem begging for a solution. But even the brightest sparks need the right conditions and strong leadership to grow. A founder’s management style determines the direction of a startup and shapes its culture. Moreover, the personality factor defines the dynamics within the team and sets the tone for meeting challenges.
The Founder Institute’s Entrepreneur DNA Assessment categorizes founders into nine distinct personality profiles. These profiles offer a window into how founders lead, innovate, and collaborate.
Knowing your profile will increase your self-awareness and, more importantly, help you build a complementary team of co-founders who balance your traits. Let’s analyze these profiles and see how they fit into the puzzle of compiling a successful startup.
Prodigies are curious and analytical thinkers who easily break down complex problems. They thrive in roles that demand flexibility and intellectual stimulation.
Key Traits:
Strengths: They bring clarity to ambiguity and develop innovative solutions.
Potential Challenges: Prodigies may struggle with communication if their ideas are too complex for others to follow.
Example: A Prodigy founder might lead a data-driven company, ensuring their team makes decisions based on detailed analytics. Pairing with a Visionary could help turn their insights into compelling pitches.
Hustlers are energetic and outgoing, which makes them exceptional at networking and sales. They are fantastic with people but also know how to stand for their own convictions.
Key Traits:
Strengths: Hustlers can sell any idea or product, motivating teams and attracting customers and investors.
Potential Challenges: They may focus too much on short-term wins over long-term strategy.
Tip: If you’re a Hustler, consider partnering with a Strategist to add structure and long-term planning to your efforts.
Machines are responsible and independent. They love getting things done and have the necessary persistence to follow up with all their projects.
Key Traits:
Strengths: Machines are dependable and ensure that the team consistently meets its objectives.
Potential Challenges: They may struggle with delegation or collaborating on more creative tasks.
Example: Machines shine in operational roles. A co-founder who’s an Innovator could help inject creativity and fresh ideas into their work.
Achievers enjoy a good rivalry and are not afraid to fail. They don’t panic under pressure and are motivated by challenging goals.
Key Traits:
Strengths: Achievers push boundaries and inspire their teams to aim higher.
Potential Challenges: Their relentless focus on results can lead to burnout or friction within the team.
Tip: Partnering with an empathetic Hustler can help Achievers maintain team harmony.
Visionaries are bold and innovative. Their power is in articulating a compelling vision and rallying others around it.
Key Traits:
Strengths: Visionaries inspire teams and stakeholders with their ambitious ideas and commitment.
Potential Challenges: They may overlook details, requiring a structured co-founder to ground their vision in reality.
Example: A Visionary can paint a big-picture roadmap, while a Prodigy ensures the smaller steps align with the overall strategy.
Strategists are collaborative and organized, excelling at balancing innovation and execution. They don’t hesitate much. Instead, they take time to regroup their thoughts.
Key Traits:
Strengths: Strategists are great at long-term planning and aligning teams to a common goal.
Potential Challenges: Over-analysis can sometimes delay critical decisions.
Tip: If you’re a Strategist, pair with an Inventor who can push for bolder actions.
Innovators are creative and cooperative thinkers who thrive on brainstorming new ideas and fostering team synergy.
Key Traits:
Strengths: Innovators bring fresh perspectives and excel at finding creative solutions.
Potential Challenges: They may struggle to prioritize and execute their numerous ideas.
Example: An Innovator who partners with a Machine ensures their ideas are efficiently executed.
Architects are risk-averse and detail-oriented. They’re skilled at creating thoughtful and deliberate plans.
Key Traits:
Strengths: Architects provide stability and ensure all angles are considered before decisions are made.
Potential Challenges: Their cautious nature can slow down decision-making in fast-paced environments.
Tip: Collaborate with a Visionary to balance careful planning with bold initiatives.
Inventors are inquisitive and experimental. They are motivated by exploring uncharted territories and coming up with entirely new plans.
Key Traits:
Strengths: Inventors bring breakthrough ideas and foster a culture of innovation.
Potential Challenges: They may struggle with routine tasks and require structured support to implement their ideas effectively.
Example: An Inventor working with a Strategist can bring innovative ideas to life through disciplined execution.
Find free courses, mentorship, networking and grants created just for small businesses.
Leadership is not a static quality but a dynamic skill that evolves with your startup’s needs. It begins with self-awareness: understanding your unique strengths and the areas you’re naturally good in. Identifying your blind spots and addressing them is equally valid. Exceptional leaders leverage their abilities while surrounding themselves with people who bring complementary skills to the table.
A successful founder team embodies diversity in leadership styles. This way, the team is able to approach challenges from multiple perspectives. For example, while a Visionary inspires bold moves, a Strategist ensures calculated execution. This balance creates resilience and fosters long-term success.
Once you’ve recognized your complementary co-founders, focus on cultivating a fertile working relationship:
Image by rawpixel.com on Freepik
The post The 9 Types of Startup Founders and How to Build a Great Co-Founder Team appeared first on StartupNation.
2025-03-14 13:13:46
It shouldn’t be news to anyone that, in today’s world, technology is a way of creating efficiencies in almost every process in manufacturing, industry, commerce, or services. As any new company sets out to create systems for introducing its product or service, having a “platform mindset” will enable it to achieve maximum scalability and efficiency.
A platform mindset is thinking about all the systems’ goals with intentionality: optimally extracting the most value from technology while maintaining a great culture, platforms, and tools well into the future. However, this must be done with a growth mindset, as there are no simple formulas, and it involves learning as you go.
It’s difficult to predict whether a company will grow since in real life most new businesses don’t flourish. You can be aware that, if the company does grow, you’ll need to think fast about solving the challenges in each area with an eye to scale, because artisanal solutions tend to be chaotic to manage in the long term. And mistakes in a small company have very different consequences than mistakes in companies that already operate at scale. The best way to minimize mistakes is to be intentional about how to grow.
For example, a dog food business that starts out as a home-based business and suddenly becomes popular and needs to scale may have different priorities when it grows. It may need to open a better channel for active communication with customers, requiring specialized software. As the business grows, technology needs to change to support its processes and operations in an intentional and integrated way with the rest of the organization.
It’s a risk not paying attention to the fact that the company may suddenly grow bigger. If each team makes independent decisions and follows the same processes as when the company was a start-up, chaos will ensue.
For example, an employee performance review system that could handle 10 employees may not work so well when that number reaches 100. Why not? Perhaps Alex from HR would copy the names of the people from an employee registration spreadsheet into the review system, circulate the information between the involved parties, then manually transfer the reviews and comments back from the review system to the spreadsheet. However, with a much larger number of people, departments, and responses involved, this kind of workflow becomes burdensome and eventually becomes a “technical debt.”
The lack of integration between the employee registration and the performance review systems would be a nightmare. The list of employees to be evaluated may be incorrect, as it would depend on manual processes that are susceptible to error and not scalable.
Without a platform mindset permeating the company so that it develops new functionalities and systems in a conscious way, technical debts become obstacles to growth and the operation is compromised — even if the product or service is conceptually great. The accumulation of technical debt leads to a loss of productivity over time.
Building software with shortcuts but without attention to quality and the best way to implement each new feature can lead to an initial productivity gain. However, as would happen with a monetary debt, in the long term the interest accrues, and the technical debts significantly impact productivity.
Human resources processes scale with the number of employees; sales processes scale with the number of clients; operations processes scale with the number of suppliers; legal processes scale with the number of employees, clients, and offices. And logistics problems scale with the number of headquarters, clients, and employees. Many aspects take on a large scale as a company grows, and to meet this inexorable demand, the people in leadership roles must turn their minds to building an integrated technology area — using a platform mindset.
Having a senior technology professional on board as early as possible is key to carrying out these assessments. A technology manager who plays a leading role in a company’s early stages would be able to plan all the processes, both from the point of view of systems development and implementation and of building the team and defining management processes.
A technology manager hired by a company that has grown disorganized is left with the more laborious task of reviewing all the processes and, in most cases, revisiting the configuration of the team itself. They will have to deal with questions such as:
What’s more, if each department in the company hires a few technology professionals to separately create 10 systems, you’ll end up with 10 problems. Each of these departments may be better locally than before, but the company overall will be in a situation far below its potential due to a lack of communication and integration.
Instead, to effectively scale your business in an integrated fashion, apply a platform mindset at the start-up phase and bring in a technology leader who can envision, communicate, and implement the mechanism that will facilitate growth and change. Viewing technology as a partner area fundamental to transforming and scaling your business will promote an integrated vision that includes an intention to scale and transform into the future.
Marcus Fontoura is the author of A Platform Mindset: Building a Culture of Collaboration (8080 Books).
The post To Scale Your Business, Start Systems Integration at the Startup Phase appeared first on StartupNation.
2025-03-13 13:29:28
Historically speaking, borrowing money from family and friends to start a business has been viewed with a somewhat cynical eye. So much so, in fact, that tradition has bequeathed us an alliterative phrase about it to help jog our memories as to its downside whenever the subject comes up.
“Friends, family, and fools” is the phrase of which I speak. It implies that only a parent blinded by love or a naif blinded by inexperience would do something so risky as to finance the dream of an untested entrepreneur.
Small business financing has undergone a revolution over the past few decades. Finding it is now easier and more convenient than ever before. But even the most adventurous lender is going to want to see some positive track record before doling out a mountain of cash to a brand-new business owner.
In some cases, in other words, the generosity of friends, family, and fools is all that a young, ambitious, capital-starved entrepreneur can hope for. I can say this from both good and bad experiences.
What borrowing from the “three Fs” usually looks like
Let’s start with the bad. The first time I reached out to a family member about financing one of my ideas, I made a fool of him in the process. I was a kid, it’s true, but in retrospect my scheme was ridiculous to the point of cliche – why had anyone fallen for it?
I myself had fallen hard for a multi-level marketing (MLM) scheme that, for a one-time payment of $2000, would doubtlessly make me a millionaire. I went to my dad for the money, which he promptly supplied.
I just as promptly lost it, but he kept his faith in me, which underscores both the strength and the weakness of financial transactions between young business owners and their family members. In the end, the whole thing is motivated by love. My dad, from one angle, was blinded by his love for me to the point that he lost $2000 he could hardly afford; from another angle, he made an investment thanks to that love that in the future would pay off big time for both of us.
Speaking of which, let’s get to the good. Years after the debacle described above, I founded an honest-to-goodness business repairing commercial signs. I enjoyed some success right out of the gate, but my total dearth of credit history ensured that formal lenders wouldn’t give me the time of day.
Once again, I approached my old man. I asked him for a substantially higher sum than $2000 with which to buy an expensive piece of equipment to take my business to the next level. Once again, he came to the rescue. My business exploded soon after, and I’m pretty sure that life hasn’t been quite the same for either of us ever since.
In a nutshell, borrowing from friends and family is terribly risky because there is a lot more on the line than mere money. Their love opens their eyes to your potential, but it also blinds them to your weaknesses and exaggerates your strengths. To be fair to them and yourself, never consider entering into such an agreement without taking the following steps:
When I went to my dad about the MLM, I never even bothered bringing up the fact that I might not be able to repay him. I was so sure I’d succeed that it seemed like a waste of words.
Being honest about the potential of losing someone’s hard-earned money is never a waste of words. No relationship is so strong that miscommunicating about finances can’t damage it.
I’m extremely fortunate in that my dad forgave me so instantly for losing his dough, but nothing like that is written in stone and happy outcomes often depend on factors that change from moment to moment and relationship to relationship.
If I’d been straightforward from the get-go about the riskiness of the MLM, on the other hand, I’d have taken a major step toward guaranteeing a happy outcome regardless of what happened.
Find free courses, mentorship, networking and grants created just for small businesses.
I would have strengthened that step immeasurably if I’d written it down with my dad beforehand. Memory, after all, is a fickle thing – when was the last time you and even your best friend remembered a complicated event precisely the same way?
No matter how honest you are beforehand about the risks involved, chances are good if you end up losing someone’s money, the main thing they’ll remember is that you seemed awfully enthusiastic about your prospects when you asked for it.
Writing a simple contract will help keep you both honest under those circumstances. It’s a lot harder to blame someone for a choice you made when there’s clear evidence that no one twisted your arm.
When you borrow money from family and friends, make sure to set up a repayment plan and then never, ever place them in the awkward position of having to approach you about it. Be as proactive about making it right as if your very life depended on it.
On the few occasions I’ve lent to family and friends, I’ve been very honest up front that I expect this courtesy to be shown to me. Regarding one friend in particular–a small business owner whom I helped bail out of financial trouble–I was blunt in the extreme.
“Don’t make me chase you down about repaying this,” I essentially said – and I said it because it was essential to maintaining the relationship. He understood that I wasn’t saying I’d break his arm in case of a late payment – I was simply saying, “Be honest with me. Stay ahead of it. Communicate if you’re feeling overwhelmed.”
Image by rawpixel.com on Freepik
The post Taking Startup Money from Family and Friends: Three ‘Musts’ appeared first on StartupNation.
2025-03-11 13:13:53
If your startup proves successful in one location, the logical next step is to expand the brand. Franchise expansion lets you build on the brand awareness and customer loyalty you’ve already achieved.
But there are challenges too, such as finding the right locations and partners, meeting operational costs, and maintaining consistent branding and experiences across the franchise. You’ll need careful planning and detailed strategies for success.
In this post, we’ll discuss the concept of franchise expansion and offer our top tips for building a thriving franchise network.
Franchise expansion is when an established business grants franchise rights to independent entrepreneurs who operate branches or extensions of the original company under the same branding. Franchisees pay an upfront fee to the franchisor, plus ongoing royalties.
It’s a concept that brings benefits to both sides. Franchisors can quickly build a wider presence, access new customer bases, and increase brand recognition. They’re helped by the income from franchisees and their knowledge of the local market, minimizing the risks of expansion.
There’s also less risk for the franchisees who get to run a business under an established brand that’s already proved successful. They benefit from training and support while both parties can share marketing resources.
Successful franchise expansion doesn’t happen overnight. Here are our top tips for building a resilient franchise network that boosts revenue for you and your franchisees:
Whether this is your first expansion or you’re aiming to grow an existing franchise, the process begins with research. You need to identify market demand for your product or service, which means looking at demographics, consumer behavior, and the presence of local competitors.
Finding the right physical location for a new branch is also a critical aspect. Consider current foot traffic, accessibility, and whether the area has other attractions nearby. Do you already enjoy high brand recognition in different locations?
Once you’ve discovered franchise opportunities, you can put together a business plan for the intended expansion, outlining all aspects of your strategy.
Although you’ll be receiving franchise fees, franchise expansion still requires significant investment on your part. You’ll have to cover things like real estate costs (including construction or renovation), equipment purchases, staff wages and training, and marketing.
You’ll need to create a detailed financial plan that takes all these expenses into account, as well as your expected revenue and return on investment (ROI). It’s a good idea to consult a financial advisor to make sure a franchise expansion is financially viable.
Robust financial planning can also help you to secure funding, as it shows potential lenders or investors that the business is in a stable position.
Before going ahead with your expansion plans, it’s vital to ensure that your existing infrastructure and processes are ready to handle higher demand and multiple locations. Standardize your operational workflows so that they’re applicable across the whole franchise.
A smooth supply chain is also critical for successful expansion, so check that your current suppliers can meet the increased demand and deliver to your new locations. As your operations become more complex, clear communication is even more important.
Technology will deliver greater operational efficiency, so consider tools such as inventory management software and advanced POS systems that sync data between locations and suppliers. 66% of franchisors said they were implementing technology to improve operations in 2024, up from 22% the previous year.
It’s important to select franchisees who are a good fit for your business. These are people who have relevant industry experience, business skills, and financial resources and who are committed to your brand’s values and culture. Set clear criteria for choosing franchisees.
You’ll need to provide all the necessary resources and comprehensive training for running a franchise, with guidance on everything from operational processes and product knowledge to customer service protocols and effective marketing strategies.
With open communication and ongoing support, you’ll be able to develop a sense of community among your franchisees.
Find free courses, mentorship, networking and grants created just for small businesses.
Expansion means that you won’t have complete control over each franchise unit. But you still have to offer a consistent customer experience across the whole franchise. Consistency fosters trust and a loyal customer base, which leads to higher revenue.
Customers in any franchise location should see the same products, branding, and standards of service. That means providing clear guidelines—not just for logos and color schemes on your marketing materials but also for your brand values.
You’ll need to monitor and support franchisees to help them stick to the standards and make sure one location doesn’t let the rest down. Using cloud contact center solutions with AI tools will increase consistency in customer support.
For national or international expansion, you need to be aware of the franchising rules for each location. It’s wise to hire a franchise attorney to help you maintain compliance and create and interpret legal documents.
Under US Federal Trade Commission (FTC) regulations, franchise owners must provide a Franchise Disclosure Document (FDD) to potential franchisees at least 14 days before completing the transaction. Several states have additional franchising rules.
Legal requirements differ around the world. For example, Australia has a Franchising Code of Conduct, while the UK industry self-regulates using the British Franchise Association (BFA) Code of Ethics.
Continuous monitoring and improvement will help your expanded franchise to offer consistent experiences, stay competitive, and attract new franchisees. It’s important to collect regular feedback from franchisees and customers to find out what’s working and what isn’t.
You should also stay up to date with market dynamics and industry developments, as well as evolving consumer preferences for sustainability, diversity, personalized services, and community involvement. Remember to take cultural differences into account if you’re expanding abroad.
With wider market reach and shared access to resources, franchise expansion brings benefits on both sides. To achieve long-term success, you should take a strategic approach to the franchising process, starting with research into target markets and prospective franchisees.
Create a financial plan, assess your operational readiness for expansion, and provide comprehensive training programs to your franchisees to ensure consistency across locations. Be aware of your legal responsibilities, and keep adapting for continuous improvement.
Image from Unsplash
The post Franchise Expansion: 7 Tips to Build a Resilient Network appeared first on StartupNation.
2025-03-09 15:24:32
Discover the game-changing SaaS solutions that are revolutionizing the way startups operate and cut costs. This article delves into real-world examples, showcasing the transformative impact of these tools, with expert insights highlighting their strategic advantages. Learn how embracing these technologies can lead to significant savings and streamlined processes for your business.
Zapier became our most valuable cost-cutting tool, but not through typical automation. We discovered it could replace our entire client onboarding team by connecting our project management system directly with clients’ existing workflows. Most agencies force clients to learn their systems—we did the opposite.
For example, when a law firm client mentioned they lived in Microsoft Teams, we built Zaps that turned their Teams messages into project tasks in our system. They never had to leave their familiar environment, yet we got all the data we needed. This eliminated the need for multiple project coordinators who previously managed platform transitions and data entry.
The unexpected benefit was improved client satisfaction. Instead of paying $60,000 annually for dedicated onboarding staff, we spent $600 yearly on Zapier while giving clients a smoother experience. Our client teams now start actual work within hours of signing, rather than spending weeks on platform training and setup. Sometimes the best cost savings come from removing processes rather than just automating them.
Marc Hardgrove, CEO, The Hoth
Using Canva for design tasks drastically reduced our need for external freelancers. It enabled team members without design expertise to create professional-looking visuals. From social media graphics to internal presentations, Canva met most of our needs. The tool’s affordability made it a perfect fit for early-stage cost management. Empowering employees with accessible tools helped us save on creative services.
Alari Aho, CEO and Founder, Toggl Inc
When we were just starting out, our accounting process was pretty manual. Though we did use Expensify to manage expenses initially, it became clear that it couldn’t scale with us as our company grew. We found ourselves spending too much time on administrative tasks like reconciling accounts, categorizing transactions, and following up on overdue invoices. This not only took up valuable time but also meant we were relying on external help for some tasks, adding to our costs.
That’s when we switched to Xero, and the cost savings were immediate. Xero automated so many of the tasks that used to eat up our time. For example, it synced automatically with our bank accounts and credit cards, categorizing transactions for us. This cut our time spent on manual reconciliation by about 50%, saving us both time and money that would’ve otherwise gone to external accounting services or extra staff hours.
Invoicing also became much more efficient. We could create and send invoices with just a few clicks, and Xero’s automated reminders for overdue invoices meant we no longer had to chase payments manually. This improved our cash flow and reduced the need for additional customer support resources to follow up on outstanding invoices.
As a result, our average collection period dropped by 30%, which directly impacted our bottom line. By integrating Xero with other tools we were already using, like payroll services, we avoided the costs of maintaining separate systems and reduced the risk of data entry errors. Xero essentially gave us a unified financial ecosystem, making our accounting more accurate and efficient.
In the end, Xero helped us cut costs across multiple areas. It eliminated the need for extra accounting help, reduced the time spent on admin, and improved cash flow. It was a smart investment that allowed us to focus our resources where they mattered most.
Bob Schulte, Founder, Bryt Software LLC
Get back to what you love with Xero accounting software Spend less time in the books Try accounting software for everyday businesses. With features and tools to save you time.
Xero
We earn a commission if you make a purchase, at no additional cost to you.
I’ve found that Airtable was a game-changer for reducing costs in my startup because it allowed us to replace multiple tools with one adaptable platform. What stood out to me was its flexibility—I could create workflows tailored to our needs without the rigidity or cost of specialized software. Early on, we were spending on separate tools for project management, CRM, and even basic data tracking, which quickly became overwhelming both financially and operationally. With Airtable, I was able to consolidate all of these into a single system that felt intuitive for my team to use.
One moment that really cemented its value for me was when we customized a simple database to track our sales pipeline and client onboarding process. It took just a few hours to set up, and it immediately eliminated the need for an expensive CRM we thought was essential. What I love most is that it’s not just about saving money—it’s about empowering my team to adapt and evolve without being locked into rigid systems. That kind of control gave me confidence as we scaled, knowing we could stay agile without stretching our budget. For me, Airtable wasn’t just a tool; it was a solution that aligned perfectly with the scrappy, innovative mindset every startup needs.
Sachin Puri, Chief Growth Officer, Liquid Web
One SaaS solution that significantly helped reduce costs in our startup is HubSpot CRM. As a growing business, we needed an affordable customer relationship management tool to organize leads, track interactions, and streamline sales processes. Many CRM options were costly, but HubSpot’s free plan provided essential tools, enabling us to manage customer relationships without financial strain.
How HubSpot CRM Reduced Costs:
Using HubSpot CRM, we cut software expenses by 40%, reduced administrative workload, and improved sales efficiency. Lead conversions increased by 25%, and customer satisfaction rose due to timely follow-ups and personalized communication.
Choose SaaS tools with free plans or tiered pricing to start small, leverage automation, and prioritize scalability. HubSpot CRM is a prime example of how startups can reduce costs while achieving professional results and long-term growth.
Adrian Ghira, Managing Partner & CEO, GAM Tech
Grow better with HubSpot Software that's powerful, not overpowering. Seamlessly connect your data, teams, and customers on one CRM platform that grows with your business.
Hubspot
We earn a commission if you make a purchase, at no additional cost to you.
One SaaS solution that significantly helped reduce costs in my startup is Notion. Initially, we were using separate tools for project management, team collaboration, and knowledge sharing, which added up in costs and created inefficiencies. By consolidating these functions into Notion, we eliminated the need for multiple subscriptions and streamlined workflows into a single platform.
For example, we built a central knowledge hub where team members could access resources, updates, and task boards in real time. This reduced reliance on lengthy email threads and improved productivity by cutting meeting times by nearly 20%. The flexibility of the tool allowed us to adapt it to our unique processes without hiring a developer or purchasing additional software.
My advice: look for SaaS solutions that can replace multiple tools and are customizable to your business needs—it’s a game changer for startups operating on lean budgets.
Habib Rkha, Founder, QCADVISOR
Your wiki, docs, & projects. Together. Notion is the connected workspace where better, faster work happens. Now with AI.
Notion
We earn a commission if you make a purchase, at no additional cost to you.
One SaaS solution that significantly helped reduce costs in our early-stage startup was Gusto for payroll and HR. As a founder, I was spending far too much time on administrative tasks related to onboarding new employees, running payroll, managing benefits, and ensuring tax compliance. Gusto automated and streamlined all of those processes, saving me countless hours and headaches. It also reduced costly errors and ensured everything was done accurately and on time. For a low monthly fee, Gusto took a huge burden off my plate as a founder so I could focus on higher-impact areas of the business. I’d highly recommend it to any startup looking to operate lean.
Philip Stoelman, Founder & CEO, Network Republic
In the quest to cut costs efficiently, we turned to SaaS solutions and experienced a notable impact. One such service that stood out is ShipStation, an e-commerce shipping software. ShipStation transformed our shipping process, helping us to automate time-consuming tasks such as label creation and order consolidation. Through this, we witnessed a significant reduction in manual labor hours, translating into cost savings.
Additionally, ShipStation made it possible to compare rates among different carriers, which led to decreased shipping costs. Consequently, the savings were passed to our customers, making our offerings more competitive and enhancing customer satisfaction. Harnessing the power of SaaS, in this case, brought about a win-win situation for both our business and our customers.
Mark Agnew, CEO and Founder, Eyeglasses.com
From my experience leading and managing a team of 10+ startup experts, Salesforce has been a game-changer for us. I actually got my first real experience with Salesforce during my time at N26, where I worked on upgrading their CRM system, and that experience proved invaluable when setting up our own system at spectup. We use it to track our entire client journey, from initial contact through our consulting process, which has cut our client management costs by streamlining what used to be a pretty scattered process. When I was at Civey handling business development, I learned the hard way how expensive poor client tracking can be, so I made sure we got this right at spectup from the start.
The automation features have saved us countless hours in follow-ups and reporting, letting our team focus on what really matters—helping startups grow and attract investors. Plus, it helps us track our success metrics and client outcomes more effectively, which is crucial when you’re working with startups where every dollar counts.
Niclas Schlopsna, Managing Consultant and CEO, spectup
AI + Data + CRM = more sales and happier customers.
Start or grow your business with the #1 CRM. Salesforce now has AI tools that helps you connect with your customers in a whole new way.
One SaaS solution that significantly helped reduce costs in our software development startup is Cursor.com. It’s an AI-powered code editor that deeply understands your codebase, making it an invaluable tool for our developers. Cursor includes an advanced autocomplete feature that predicts multi-line edits based on your recent changes, drastically reducing the time spent on repetitive tasks.
Beyond just autocomplete, its AI assistant is fully integrated into the editor, allowing developers to ask questions like, “Is there a bug here?” or request optimizations directly in the context of the code they are working on. The ability to engage with the AI in real-time, not only on the current file but across the entire codebase, means we can quickly address issues, refactor efficiently, and even generate new code by describing desired functionality.
This level of integration and understanding has streamlined our development process, reduced debugging hours, and improved overall productivity. By leveraging Cursor.com, we’ve been able to cut costs by optimizing developer output and minimizing time spent on routine tasks, all while maintaining high-quality code standards.
Moritz Cordes, CEO, Metanoia IT Solutions
A great example of a SaaS solution that helped cut costs in our startup was Slack. In our first months, we relied a lot on email and multiple different systems for communication, which took more time and resources on collaboration tools. Slack made everything much easier by consolidating communications, file sharing, and allowing integration with management systems like Trello and Asana.
For instance, by systemizing updates and notifications via Slack channels, we got rid of several status meetings, which were a waste of time and money. Since we started, its free tier was good enough for us as it had enough functionality without paid investment. This enabled us to concentrate resources on scaling up while creatively working and collaborating with each other in real-time even if we were remotely located.
James Allsopp, CEO, iNet Ventures
I know they get a lot of flak for being useless or because you can find everything for free via an open-source library or repo online.
I get it.
We used a SaaS boilerplate to get started. It’s not a traditional SaaS, but it has a recurring payment due every year.
As you know, software development is expensive whether you’re using freelancers, full-time staff, or doing it yourself.
There are tons of things you need to do when setting up a software application. Login authentication, registration, social login, transactional emails, super admin accounts, team management, user onboarding, billing, etc.
All this is before you start building the core features of your software. It can take anywhere from a few weeks to a few months depending on the complexity of your setup.
In our case, it would have taken 6 – 8 weeks to build it and ensure it was stable. With the boilerplate, we spent less than $300 and spent three days setting it up. That saved us at least a few thousand dollars.
Felix Yim, CoFounder and Marketing Director Humanize AI, Humanize AI
To reduce costs in your startup—never overlook G Suite (now Google Workspace)! It is a perfect SaaS solution that provides essential tools like email, document collaboration, and cloud storage. Moreover, in the context of pricing, you will find it very affordable.
Also, you won’t be required to invest in expensive hardware or software licenses. In fact, it scaled easily as we grew. Above all, you seamlessly integrate it between apps! It helped us boost our productivity and the predictable monthly cost made budgeting much simpler. Overall, it was a game-changer for our small team.
Isaac Gross, CEO and Founder, IG PPC
Last year, we switched from Slack to Discord, and we are not looking back. Previously, we spent over $1,000 a month on Slack, but now we spend almost nothing on Discord.
The best part is that our younger collaborators loved it the most.
We started looking at the status quo of our company’s tech stack, and we started seeing a lot of tools that had competitors that were better or free. Slack for Discord is one.
Ismael Larrosa, CEO, Capicua
Lark has been very beneficial for our company as it has cut down operational expenses for us greatly. Lark is a multi-functional platform that not only provides instant messaging but audio and video calls, and file sharing as well. This allows the teams to avoid switching between applications for communication and collaboration as they can do it all in one application.
For instance, like before we used emails and Zoom to communicate and hold meetings, now these functions can be achieved using Lark. This has cut down our software buying and subscription expenses as well as cut down immensely the time that the team spends in communication. Lark’s cloud document function has spared us some significant costs and therefore has communication utilities in it. For all materials and files to be accessed at any time, Lark allows all of them to be saved in the cloud all at once. This method avoids the cumbersome problems associated with file transferring and version control.
At the same time, Lark also allows several people to collaboratively edit the work in real time thereby enhancing the effectiveness of the team members. As far as project management is concerned, Lark has most developed our work processes. Previously, we were compelled to employ different tools to manage tasks and the performance of projects. But with Lark, every task, every project, every reminder can be easily handled from a single place. Team members are able to track the progress of the task through Lark to keep work on the right track. Thus, it not only makes management of projects more convenient and effective but also cuts down on the time wasted on changing from one platform to the other on top of saving a good deal of management costs.
Eve Bai, International Partnerships and Operations Manager, StudyX.AI
We switched from hosting our website and services from AWS to Vercel to save on costs. Vercel’s business model allowed us to have multiple domains attached to a single web application—while on AWS we had to create load balancers for each domain, which added to our costs. Our app uses Next.js as the full stack framework—and Vercel, which is the creator of Next.js, offers several platform-specific optimizations—which further helped us drive down costs. Beyond just the cost considerations, Vercel also offered a much better developer experience, which increased productivity and allowed us to seamlessly deploy updates to our app with a single click.
Anuj Mulik, Software Engineer, Featured
Pivoting to a SaaS solution like Troops, which integrates Slack with CRM systems such as Salesforce, played a crucial role in reducing operational costs at the startup phase. Troops streamlines team communication by connecting sales data directly to your everyday messaging app. This approach not only cuts down on time spent switching between platforms but also minimizes errors by keeping everyone updated in real-time.
Integrating automation tools that provide alerts and reminders within Slack ensures team members act promptly on critical data, like lead follow-ups or deal changes, without missing a beat. This boosts efficiency while saving money on potentially overlooked opportunities. Encouraging the team to customize their notifications based on role-specific needs can further enhance workflow, ensuring each team member gets the most relevant updates. By embedding these automations directly into everyday tools, startups can maintain a lean operation while maximizing productivity.
Andrei Newman, Founder, Casa Blui
We specialize in helping organizations across various industries optimize their technology to reduce costs and enhance operational efficiency, including maximizing the potential of their SaaS applications. One standout solution that has consistently delivered value, particularly since the pandemic, is Microsoft Teams.
We utilize Microsoft Teams internally and implement it as an integrated solution for our clients throughout the United States and beyond. This robust SaaS platform provides a comprehensive suite of collaboration tools, including cloud-based communication, secure file sharing, and seamless integration with other Microsoft business applications. By centralizing these functionalities, Microsoft Teams eliminates the need for multiple alternative solutions, offering a cost-effective and scalable option for businesses of all sizes.
Paul Iwaszek, Director of IT, Go Technology Group
Microsoft 365 Premium is an example of a powerful SaaS solution that not only reduces costs but also provides a comprehensive suite of tools to streamline business operations. Often associated solely with email, its true value extends far beyond that. This subscription provides you and your team access to SharePoint, enabling efficient collaboration and document management through centralized storage and real-time editing. The full Office Suite is also included, providing essential productivity apps like Excel, Word, Outlook, PowerPoint, Access, and Teams.
For IT departments, Microsoft Intune delivers advanced device and app management, conditional access policies, and enhanced security controls. Coupled with Microsoft Defender for Business, it ensures endpoint protection, threat detection, and automated responses to safeguard your devices against cyber threats. By integrating these features into one cohesive platform, Microsoft 365 Premium reduces the need for multiple disparate solutions, simplifies IT management, enhances productivity, and provides top-tier security—all while delivering significant cost savings.
Kevin Wilson, Systems Administrator, Urban IT, Inc.
Image by KamranAydinov on Freepik
Find free courses, mentorship, networking and grants created just for small businesses.
The post 19 SaaS Solutions that Help Startups Cut Costs appeared first on StartupNation.
