As a business owner, you have come across every challenge there is, from the daily administrative tasks to dealing with irate clients and customers. Then there is the overwhelming task of managing your business’ finances. Fortunately, your business can stay financially resilient and save thousands of money with these five cost saving tips for small businesses.
Let us face it, profits do not always come in rainbows and butterflies. The cycle of high and low is natural and part of the risk you take as a business owner. However in the low times, there are ways you can protect your finances and prevent further loss.
Go Green
A lot of resources from different industries advise on going green. It is also written in websites such as Tech Radar, American Express, and Business2Community simply because it works. When you go green, you save on PR expenses and literally on electricity, paper, and printer costs.
How to go green? Buy energy saving equipment and ditch paper if you can and go paperless. You will be surprised at how much you can save by simply turning off machines when not in use. Do not forget to buy second hand equipment and recycle waste from the office.
Go Online
This tip might go under going green too. If your products and service are not yet available online, you make it available online now. You can do this by creating a website or if you do not have a budget for it, put it up on Facebook.
Going online is free and easy, plus it can reach wider customers and clients. It is free marketing that you have to maximize. There are other potentials to save money too when you go online.
Once your products are online, you can have the following options:
- Free up your office some space and possibly share rent with another small business. Rent eats up a large chunk of your business’ finances.
- When you can fully go online, you and your employees can work from home. It can cut the cost of your bills, rent, and employment salary.
- Ask loyal customers for support and give positive reviews online.
If you are not a technologically adept kind of person, you do not have to worry. Search YouTube for tutorials or navigate the sites manually as these are usually user-friendly. Plus many online tools which can help establish your online presence are free or offer low monthly cost.
If you are technologically savvy, you have bonus points for putting up your business online. You can maximize the marketing strategies of your business using Facebook and other social media platforms. Apply SEO strategies, and join forums as these are great ways to market online.
Connect with your customers online. Ask customers to share your contents and you too can share their contents. It will make them feel valued and important. The possibilities are endless.
Go Debtless
Some small business owners sleep soundly at night, but some do not. If you are one of those who do not sleep well at night, maybe it is time to let go of your debt. While debt is part of securing finance to run a business, debt is usually a drag or a gravity that pulls a business down as Denis Goeghigan of Expert Program Management described it.
Debt is unavoidable in some cases and even beneficial depending on how one manages money According to Debt, an estimated 50% of small businesses in the USA struggle within the first five years due to poor credit management, lack of capital, and too much debt.
If debts are unavoidable, save your business by consolidating loans into one lender, reviewing budget, selling unused equipment, or just cost cutting in general. Contact a professional and trusted financial advisor, if needed.
Go Negotiate
Negotiate with existing suppliers and vendors to lower costs. It could be through buying in bulk, which has been proven to spare small businesses from expenses. You could negotiate too on payment terms and lower selling price.
Negotiating could also involve customers. Try negotiating a discount in exchange for positive feedback or word of mouth marketing to a loyal customer.
Forge a partnership with another small business. Formulate and negotiate package inclusions. An example would be a salon business partnering up with bridal store shops and wedding organizers for an all-in bridal shower and pampering package. You just have to be a little creative on this one.
Go Outsource
You might feel the urge to do everything to save money but it can affect the quality of your customer service, marketing, and operations in general. By outsourcing, you can employ someone who can just work on certain hours, avoiding idle hours in the office.
Outsource repetitive tasks or projects that need to be done as soon as possible. For financially draining projects, outsourcing can help you deliver the same outputs as a regular employee at half a rate.
You have spent a lot of energy, time, and money on building that business you are so passionate about. Saving money does not mean diminishing the quality of your product or service and sacrificing the happiness of your employees or yours.
While higher revenue versus lower spending is the best way to save money, cutting out expenses is easier than increasing your revenue. Flexible hiring like outsourcing virtual assistants can also help your business stay afloat especially during challenging times. Virtual assistants stick on schedules and deliver outputs on time, reducing wasted idle times.
Regardless of your business’ financial status, these tips will put you a step ahead in making your business financially resilient.
How do you cut unnecessary expenses from your business?
Do you need help with monitoring your business’ savings and expenses?
