Owning a small business comes with as many perks as it does challenges. However, one of those challenges will unquestionably always be the management of your business’s finite financial resources.
Money is a major concern when sustaining a business, and monthly budgets may leave you with very little wiggle room for emergencies. So, how can you keep your company’s money in check?
Below, we have set out some useful money-saving tips, to help make sure your small business functions as it should. Start enjoying entrepreneurship, without quite so many money worries.
Start counting your pennies
Although this tip might appear easier said than done, it’s best to tighten the purse strings as soon as possible. By starting to count your pennies, you will know just how much you need to save – not only to stay afloat, but also to grow sustainably.
Often, small business owners can save money by purchasing supplies in bulk, taking advantage of discounted or second-hand materials, and even turning off their electricals when not in use.
Be friendly with your suppliers
Vendors can ‘make or break’ your business. After all, their supplies will help keep your products and services available and operating without a hitch.
Having a good working relationship with business suppliers can go far in determining how much money you can save. So, we would urge you to build a strong rapport with your chosen vendors, and use this as a foundation to negotiate better prices.
Outsource your employees
Maintaining a full-time team of employees can be costly, especially for a small business. And, as a small business, you might find that the work available for some of your full-time employees isn’t always substantial enough to warrant a 40-hour working week.
In this situation, you might consider outsourcing some of these employee duties to external professionals. Whether accounting or administration, outsourcing such duties to remote workers or a trusted outsourced services provider may prove more economical than maintaining a full-time employee.
But you could go further than just outsourcing basic everyday duties. Why not also invest in remote business growth advisor services? If you’re worried about growing your business on a budget, a reputable advisor can help. Use the expertise of business advisors outside your local area, and watch as your business thrives beyond the boardroom.
Market your business well
In an age of consumerism, saving money so often depends on how well you can market your business. A small business often relies heavily on public interest, both local and further afield via social media. Significantly, social media is an extremely impactful form of advertising, and can be used at very little cost to your small enterprise.
Forget about splurging on marketing gurus, and instead spend time building appealing and interactive Instagram, Twitter and Facebook profiles, for an agile and highly cost-effective online presence that will support your business’s growth ambitions. Just be sure to be responsible with the budget that you do devote to your firm’s social media marketing.
Don’t waste thousands on rent
Paying thousands to rent a large office space, when this isn’t space that you necessarily need, can be a drain on your business accounts.
If you are unable to work remotely, consider cutting down on rental costs by investing in a shared office space. Shared office spaces facilitate exemplary working conditions, between companies on a similar wavelength. Don’t shed money, when your firm’s situation doesn’t yet call for major investment in your own office space.
Would you like to find out more about Practical CFO’s own services could assist you in your efforts to save money for your business? If so, we’re available at the other end of the phone today.