Start-up founders are focusing on operating costs in 2021
Clutch’s survey shows that start-up founders are prioritising inventory and operating costs in the first quarter of 2021 as a result of supply chains becoming a greater focus over the last year
In a survey of 501 start-up founders, Clutch, a B2B ratings and reviews platform, found that supply chains have become a key focus for start-ups.
More than half (55%) of the start-up founders were shown to prioritise inventory expenses, including anything related to the product the company sells, from raw materials to the finished product. In the face of the pandemic, there has been significant disruption to supply chains for businesses both big and small, affecting both shipping costs and delivery times. This will have elevated the scrutiny start-ups are putting on their supply chains.
The survey showed that the top spending focus for start-up founders is on operating costs in the first three months of business, at 59% of respondents. These costs included anything relating to compensation, sales, and other items including business registration costs, utilities, taxes and more.
Just 33% of the founders planned to focus on marketing in Q1, perhaps due to the access to a variety of free or inexpensive marketing avenues that start-ups have, including social media and free design tools. Remote work also reduced the need for office spaces, with just 25% of founders looking to focus their spending on office space.