Running a business takes a lot of cash flow. However, spending too much money on your business will deeply cut into your profits. In fact, one of the top reasons businesses fail is because of excessive costs and inadequate capital. If you don’t want your business to crumble, you need to find ways to cut costs and save money, while keeping up the quality and efficiency.
- Finding Good Suppliers
If you have a product you sell, finding the right suppliers will save you money and time, neither of which are infinite. It may take trial and error to find the right supplier, but you want to ensure the best quality materials. Also, a good supplier delivers your products on time and offers payment terms, perhaps even extending the deadline.
- Use Social Media Marketing
Everyone knows marketing is one of the keys to success, however, it can cost an arm and a leg. One of the best marketing tools is social media, and it is a cheap option. Simply sharing your blog articles and sales will bring your new clients. However, you should use social media to connect and to learn about your clientele. By conversing with your customers, you build brand loyalty, and it makes your business stand out.
- Encourage Reviews
This is another great way to get more clients for little money. Offer your customers an incentive for leaving a review, whether on your website or on social media. This helps build up your ratings and will bring you more customers. Word of mouth is one of the best forms of marketing.
- Go Green
Just like for individuals, a green business is going to save money. Using efficiency friendly appliances and windows will save on heating and cooling costs. By reducing the amount of paper, you print, you are going to save even more money.
- Go Small
If you don’t need a lot of space for your business, you can cut costs by finding an office space for cheap. This is a great idea if you freelance and work by yourself, or have less than 10 employees. Having more space than you need just ends up wasting money.
- Remember Utilities
When you are looking for an office space for rent, remember the utilities. It is easy to fall in love with an office right at the top of your budget, only to realize weeks later the utility costs are going to cost as much as the rent. Before you sign a lease, find out the typical expenses for that particular office space. This can save you money and stress. Plus, when looking for office space, make sure that you have enough room to install a pantry, for you to be able to figure out a meal within office on a rainy day (remember, it is money-wiser to cook than to order). Preparing a meal often requires cutting and chopping, therefore, do not forget to install appliances which are handy and perfect for those little jobs.
- Get Business Insurance
While this is an extra expense, business insurance will save you a great deal of money in the event of an emergency. Can you cash flow a lawsuit because someone fell on the sidewalk? If your business had a fire and lost all of the inventory, could you survive the loss? Typically, the answer to these questions is no. This is why business insurance is a wise investment of your money, not a waste.
- Keep Good Employees
Your good employees need to stay put; they become part of the company and a valuable asset. Replacing these quality employees cost a lot of money and time. Your high performing employees earn you a great deal of money as well.
- Look at Your Operating Expenses
Don’t neglect your task of monthly budgeting. Take a look at your monthly operating expenses. There may be ways to decrease these expenses. For example, if you get donuts each morning from the same company, check to see if there are better prices. It may require a bit of time to research your normal expenses, but comparing and getting quotes from all vendors is essential. The donut example is just a simple one, but you need to price compare at least once a year.