Most people want to start their own business but struggle to even get started.
If you’re a small business owner, you deserve a pat on the back. Many people don’t even have the courage to take the plunge but you did it!
Running a business isn’t easy. There are a lot of factors you need to be careful of, especially cash flow. You have to maximize your limited resources to gain profits but still serve your customers with a high standard of quality service or product.
But how can you save money or cut costs without sacrificing quality?
Here are money saving tips for a small business owner like you.
1. Hire inexperienced staff
Hiring people with less experience is not bad at all. But you must be willing to invest your time to train them. Choose those who you think have great potential. The time and effort you spent training deserving employees will be worth it over time. As they grow with your company, then you can also raise their salaries.
2. DIY Advertising
Advertising is really expensive if you go on the traditional way so you might want to do it with creativity and some sort of gimmicks. What are some strategies?
- Social Media
Facebook, Instagram, or Pinterest are great for small business owners. Just be sure you know how social media marketing works, though.
For example, if you’re in the food industry, take beautiful photos to post on your Instagram account. Write catchy descriptions.
As a foodie myself, I get attracted to local restaurants who post beautiful pictures on Instagram!
- Encourage word of mouth
Every successful transaction with a customer means additional leads for your business. How was the experience? Are they satisfied? Respectfully encourage your customers to share and talk about their experiences to their cliques and whole circle. This may serve as an evaluation of your services too in case there are things needed to improve further.
Also, encourage bloggers to review your goods or services. This is a good way to reach a new customer base so consider collaborating with bloggers.
- Sponsor an event around your neighborhood
It doesn’t have to be a big event. Just offer anything that suits your budget. Perhaps a basketball league? You might want to sponsor the trophies and awards for the winners in exchange for ads.
3. Take advantage of technology
Thanks to this age of high-tech gadgets, many manual jobs become automated thus save time and resources. Gone are those times when you have a bulk of printed documents in your file. Go paperless as much as possible. Files are intact, accessible, secured and can be kept for a very long period of time if documents are stored and maintained on a computer.
There are available tools or software online too. Most offer free trial downloads. Look for one that will work for you and don’t hesitate to invest in new technology. Maximize use of the internet like teleconferencing services and online payment services. This reduces on site meeting costs and even travelling expenses. You can almost do anything online now so make use of it.
4. Know your suppliers
Establish a harmonious relationship with your suppliers. As you develop your partnership with them, try to ask for discounts.
Do you buy in bulk? Do you pay early? Are you a regular customer? Vendors are trying to stay in business, too, so they are most likely to offer you discounts if you ask for it.
5. Manage inventories
Monitor your inventories properly. Minimize stocks as much as possible without hurting your operations. More stocks at hand expose you to obsolescence, damages and greater costs.
6. Buy refurbished or second-hand equipment
You don’t necessarily need to buy brand new computer equipment or office furniture. With proper research skills, you can buy good as new quality equipment and can definitely save bucks.
7. Get in touch with your accountant
Burdened with huge taxes? Ask your accountant how you can possibly save legally and avail of tax deductions.
8. Consider your location
Is your profit worth your office lease? Negotiate with your landlord to give you a discount.
Review other possibilities, too. Do you really need a huge office space? Can you downsize your retail location?
You might consider sharing office space. Or can your business be converted to home business instead? Are you an industry where you can have your employees telecommute? This is actually the trend now because you save rental fees, cut utility costs and reduce overhead expenses.
It is tough to stay alive in the business world. But cutting on business costs doesn’t mean you are cutting on quality. It is all about making smarter choices when deciding how to appropriate your limited business fund.