Work Smart, Not Hard
They say it takes money to make money… well, in the world of having your own small business, it is essential.
Once you make the decision to start your own business, a lot of people tend to think that the upfront costs are what’s expensive because you’re having to dish out a lot of money on the forefront to even get the business off the ground.
What they fail to realize is that a lot of those expenses are one-time expenses… what it takes to maintain your business, financially, can be expensive too.
Things like employee salaries, rent, utilities, supplies, and marketing are all expenses that have to be paid month to month that if you’re not careful, can eat away your revenue.
The Small Business Association states that two-thirds of small businesses with employees have a survival rate of at least two years. Why do you think that is? Expenses outweighing revenue?
More than likely, yes. That’s why it’s very important to look into some money-saving strategies for your business, especially if you’re just starting out.
When it comes to money and your small business, there are two basic ways to improve cash flow and increase profits:
You can either bring in more revenue by increasing sales or reduce monthly expenses to add a little more wiggle room in your budget. We’re going to put a focus more on reducing that monthly budget.
To make sure your business doesn’t become part of that Small Business Association survival rate statistic, take a look at some things you can do to cut back on costs with your small business.
Outsource Services as Efficiently as Possible
As a business owner, your main focus is going to be on whatever product or service you’re selling.
You’re not going to have time to answer phones or work on IT issues, so one way to cut back on things like a receptionist or a full-blown IT department is to outsource it.
A virtual assistant will save you money by not having to hire a receptionist.
Some virtual assistant companies are available 24/7, allowing you to not miss any type of potential clients, plus, your customers will get to speak to an actual person and not a machine… customers really appreciate that.
Also, depending on what type of business you have, you can outsource fleet truck rentals for construction work or transportation for off-road locations.
These trucks really come in handy if you’re working on a project that will require you to need a truck for extended periods of time.
Buy Generic or Gently Used Items
Did you know that used items tend to cost 50-75% less than new items?
And that’s even when they are in great condition. If you think about it, something brand-spanking new officially becomes “used” as soon as you operate it so why not save your business some money by cutting back? Who’s going to judge you for it?
Go Paperless as Much as Possible
Paper is slowly becoming pre-historic these days with all the technological advancements anyway, so go ahead and get a head start.
The idea sounds good but the reality is that your business might not be able to fully convert to paperless just yet, depending on your business needs, but if you can find areas within your business to at least reduce paper consumption, your business will definitely be more efficient with lower paper costs.
Look into digital processes you can use for certain documents your business uses.
Utilize Free Marketing Tools
Yes, you may want to have business cards to hand out to promote your business or spend thousands on television commercials but there are also other unique and creative marketing ideas to get your business out there… some of them don’t cost you a dime!
For one, word of mouth can spread like wildfires.
Tell your family and friends to promote your business… if they love you, they’ll do it… for free! Also, use your social media. You can create a business page all while having your own personal page too.
You’ll be able to promote your business on your personal and business page… killing two birds with one stone!
The fact that social media is free is a huge plus. If you take the time and energy to be consistent and engage your company’s current and potential customers, you can reach thousands without dropping one cent!