As a business owner, one of your most important goals should be to see your business and profits grow. Unfortunately, this is often much easier said than done. Businesses cost a lot of money to run, and so cash flow is often a huge issue. In fact, it’s the reason that most companies fail, especially within the first year of trading. You have to spend money to make money, but if you’re spending too much, then you’re never really going to make any. It’s essential that you do what you can to cut costs here and there to make up the difference. As I said, this isn’t easy, but the tips below may be able to help you out.
Buy Second-Hand Equipment
When you start a business, you need an office. Unfortunately, if you don’t already have a desk, a chair, a computer, filing cabinets, and everything else, then you’re going to have to buy them. However, needing these things doesn’t mean you need new things. You can often find excellent quality, second-hand office equipment online for much cheaper, sometimes even for free. Just check out eBay and Facebook Marketplace.
Buy In Bulk
Unfortunately, it’s not just equipment you need; You also need supplies, like paper, pens, and highlighters. You can buy these things from almost any store, of course, but since you’ll be going through a lot of them, it is probably more cost effective to buy in bulk, especially if you also have to supply a team of employees.
Use The Web
Marketing is something that you usually need to invest a lot of time and money into, but, these days, you can cut marketing costs dramatically by simply using your own website and social media accounts to advertise. Blogging is a great way to get people to your site, as it increases your SEO, shows off your expertise, and gives your website value, so people are more willing to buy from you.
Ask For Referrals
People are a lot more likely to buy from you if you have been recommended by someone they know and respect. Because of this, it’s always a great idea to ask your clients and customers to write a review or referral for your business. If you tend to be getting generic reviews, like “good service” and “good products”, you might want to start writing testimonials yourself about how you’ve helped specific people, and simply ask customers to approve them.
Advertise On Everything
Everything you give to your customers and clients is an opportunity to advertise to them. For example, if you send them an invoice in the post, you could also send them a business card or leaflet with a discount code. You could also print a discount code on their receipt or bag when they buy from your store.
Get Free Help
If your business is seasonal, you probably don’t need to have a whole team of employees 365 days of the year. However, you definitely will when business starts to pick up again. When this happens, you could hire a few interns to help you out, so you don’t have to pay out for wages. If you need someone that already knows what they’re doing, you could consider freelancers, which usually saves money.
Borrow, Don’t Buy
If there’s something that you need, but only need it for a short period of time, there’s no sense in paying out to buy it. Especially when you can rent it for cheaper, or even borrow it for free. For example, if there’s a particular business book that you want to read, check out your local library before your local bookshop. You can also rent or borrow specific equipment that you might need.
Do Your Research
You can save money on lots of things, just by putting some effort into researching and shopping around. For example, you can find very similar business insurance policies, loans, and credit cards for massively different rates online. Because of this, you should never just buy or sign up for the first thing that you see, especially if you’re trying to cut costs and save money.
Pay On Time
If there are payments that you have to make each month, such as subscriptions, loan or credit card repayments, and your rent, it’s essential that you pay these on time every single month. If you don’t, you could face some pretty high late-payment fees, which isn’t ideal if you’re trying to save. If you know you won’t be able to make your payment on time, call up whoever you’re supposed to be paying, and explain your situation; they may be able to help.
Join A Group
Although you often have to pay to become a member of business groups, it is also a great way to save cash, as you are usually offered discounts on different stores and services. Check to see what discounts are offered before you join anything so that you know it’s worth your money. Joining such a group can also help in other ways, as it’s a great way to keep up-to-date with business news.
If your business doesn’t have to be run from within a permanent office, then why would you spend money renting or buying a permanent office? Instead, work from home or from your local Starbucks or Costa. You can go to clients for meetings, rather than them come to you. This will, of course, mean that you’ll have to pay for transport, but this is going to be a lot cheaper than renting or buying an office that you don’t really need.
Use Free Templates
As an entrepreneur, there are a lot of forms and paperwork that you need to fill out and have clients and customers fill out, such as invoices and contracts. Rather than waste time designing these yourself, or paying for them, just look up the type of form you’re looking for and download a free template.
Businesses cost a lot of money to run, but with these tips, you should find it a lot easier to save some cash here and there.