Starting a new small business in retail is fraught with difficulties, and many of them relate to finances. It’s hard to get high levels of investment from the bank these days when you don’t have a proven track record. For that reason, you’ll have to cut back on spending as much as possible during the early stages. With that in mind, this post offers some advice and suggestions that should assist you in keeping more cash in your accounts. Of course, you can increase spending when you begin to make a profit. However, until then, you’ll benefit from following some of the tips mentioned below.
Don’t buy your retail premises
You have two options on the table when it comes to finding the perfect retail store for your operation according to professionals like those at https://www.realcommercial.com.au. You can either purchase the building outright or lease it using a commercial agent. The latter solution makes sense if you’re attempting to save money in the short-term. You will only have to cover small monthly rental bills, and that will reduce your expenditure until you begin to make a profit. There are hundreds of commercial real estate agents in Australia at the moment, and so you just need to search online to identify the best companies. You can then get in touch with the specialists and explain your requirements. With a bit of luck, those people will come back to you with a list of potentially suitable properties. The benefits of leasing include:
- Low monthly payments
- Fewer maintenance responsibilities
- The ability to relocate easily
Just remember that you will want to purchase suitable premises outright when you can afford to do so. That will help you to reduce spending in the long-term, but you need the money in your accounts first.
Purchase used equipment
When you’re launching a new brick-and-mortar retail store; you’ll have to purchase a lot of different equipment for the venture. You’re going to require some payment tills, card readers, and many other POS items. It’s possible to save a small fortune by taking a look at some of the listings on online auction websites like eBay. Lots of companies go out of business every year, and they often use those domains to sell their equipment and raise some cash. So, there is a decent chance you will find the products you need without overspending. If you don’t like that idea, it’s sometimes possible to get the things you require on a rent to buy basis. However, that all depends on the ins and outs of your operation and the specific tools you use.
Look for the cheapest suppliers
Retailers will need lots of different suppliers to ensure the smooth running of their operation. That could mean contacting manufacturing firms overseas and asking them to ship items to your country. However, there is always room for negotiation when it comes to price. With that in mind, be sure to shop around and use quotes from various suppliers to get a better deal. You’ll also have to think about things like skip hire as most retail stores create a lot of waste. According to experts from http://www.cheaperbinhire.com.au/, stuff like that doesn’t have to break the bank if you use some common sense and negotiate with the company.
Get your goods on credit
Some manufacturers and suppliers will offer credit to new business owners who want to stock their products. You should always select that option if it is on the table. When all’s said and done, that is one of the best ways to ensure you can open your new business without spending hundreds of thousands of dollars. The best thing about that idea is that you only pay for the items after selling them to a customer. Some firms might also allow you to pay for purchases in instalments. Considering that, you need to contact the appropriate businesses and ask about their approach to credit. In most instances, that is going to help with cash flow issues, and you just have to remember to send the payments on time. Unless you have a weak credit rating, you shouldn’t encounter too many problems.
Don’t offer full-time contracts to employees
Full-time contacts give your employees peace of mind. However, they’re not suitable during the early stages of your venture when you don’t know how much profit the business will make. So, you need to think outside of the box and try an alternative method. Firstly, you might think about hiring workers using a specialist recruitment agency. That is a fantastic move because it means you can get rid of the individuals if your sales begin to slump. Secondly, you might consider offering part-time contracts to workers if you want to employ them outright. In most circumstances, you won’t have to stress about redundancy pay if the business folds, and you will reduce your wage bill considerably.
Use an automated inventory control solution
As the old saying goes, time is money, and you need to save as much of both as possible. Retailers often have to dedicate a significant portion of their working day to managing inventory. You need to make sure those shelves get stocked every evening, but that’s impossible if you don’t arrange deliveries at the right times. So, consider investing in an automated inventory control solution that will monitor your stock levels and provide updates. At the end of each day, you then just have to take a look at the system to learn which items you need to replace. That should remove the chance of human error from the process and ensure you never have empty shelves in your brick-and-mortar store.
Market your store using low-cost strategies
Marketing is often one of the most costly processes during the startup stage for retailers. You could have the best products in the world, but you’ll never make a killing if you don’t advertise your shop. While you could outsource the task to professional agencies, that tends to cost a lot of money. So, you need to consider some cheap promotional methods to attract lots of customers and gain attention. Social media is your friend, and you need to learn how to use it for commercial purposes. It also makes sense to launch a website and use banner advertising tools like Google Adwords to drive traffic. The best thing about those suggestions is that you don’t have to spend a minimum amount, and you can reach millions of potential customers in a matter of hours.
Manage bookkeeping in-house
Lots of small business owners choose to outsource accounting because they worry about making mistakes and getting in trouble with the tax authority. However, those same people tend to overlook the fact that completing a tax return is child’s play these days. Do yourself a favour and refrain from contacting accountancy firms during the first few months of trading. Instead, you should download an accounting spreadsheet template and use that to record all your income and outgoings. When things get a little more complicated further down the line, you can always alter your strategy. Still, managing bookkeeping in-house could help you to save more than $2000 during the first twelve months. That’s money you could invest in marketing and promotion.
Get better energy and utility deals
Lots of price comparison websites around these days will assist you in saving a fortune on your utility bills. You just need to visit some of those domains and enter your details. Within seconds, the sites will present the best packages available to you at the current time. On average, people who use price comparison sites for electricity and gas could save around $300-$500 per year. If you have company mobile phone contracts and internet deals; it’s also possible to follow the same process. It doesn’t make sense to overspend on essentials like those when you’re trying to cut back on spending. So, search Google for the best price comparison websites right now.
Consider going green
If you still struggle to save money after using price comparison sites; you might think about switching to solar power. Depending on the nature of your leasing contract, you can often make changes like that. Just speak to the landlord if you have any concerns. There are currently lots of government-backed schemes that assist business owners in using solar power without spending a fortune. In most instances, you can get the panels installed for free. You then pay reduced energy bills until you’ve covered the cost, and eventually, you end up with a source of power that will not break the bank.
Now you know about some brilliant methods of cutting back; nothing should stand in the way of your success. You just have to put some of these tips into action to ensure you reduce your costs and allow your business to thrive. Regardless of the niche in which your new store exists; it’s always possible to make a killing if you keep control over your finances and work hard to attract the right customers. Just be sure to check some of the other articles on this blog before leaving today because you’ll need all the advice you can get.