Becoming an economically sound business is not about cutting corners; it’s about cutting costs. Costs that are unnecessary and lead to spending far more than you need. These costs are not sustainable for long-term success, so identifying and ridding yourself of them makes sound business sense.
We explore some money saving tips for small businesses and identify areas where you could be over spending. Let our guide walk you through some tips you can put in place today to save money now and into the future.
Rethink your employee strategy
No one likes downsizing their workforce but sometimes it’s an unpleasant fact of life. However if you’re debating with yourself whether you need to hire someone in for any aspect of your business, the answer can often be: don’t.
Business experts recommend outsourcing as a way of saving long-term costs. If, for example, you need someone to come up with and execute a marketing strategy chances are it will be far cheaper to pay an agency or consultant to carry out that one piece of work than hire some someone long term to do the same job.
You may even be able to negotiate a discount if you can guarantee repeat business.
Speaking of negotiating
If you’re a business that buys regularly from suppliers then now’s the time to talk deals. Shop around and see what’s on offer and then use this information to try and leverage a better deal with your existing supplier. Chances are they will offer you a better rate rather than risk losing a loyal customer. If they can’t, then switching to a better deal elsewhere is always on the table.
Look at other areas you can try and negotiate deals on as well. From your energy supplier to your office rental fees, don’t take no for an answer.
Consider too if your suppliers are offering you the most affordable ways of working. If switching to something like injection moulding for example, would be a cheaper and better way of getting your bulk order of parts.
Get to know your customer
While it can be tempting to throw all you’ve got into marketing, the smarter and cheaper solution is to get to know your customer and their needs in depth. Rather than taking out endless advertising campaigns and failing to hit your mark, spend the money better on an agency that can drill down into your customer base and tell you exactly who is buying up your products and services.
Once you know ages, work places, social media habits and preferred email provider, you’ll be able to spend your money much more wisely. You’ll avoid spending thousands on Facebook when you really need Instagram and you’ll be talking directly to people who already know you and just need a good reason to return to your site.
Running your own business is a challenge and the majority of the decision-making falls on your shoulders. Think smart, affordable marketing, negotiate the best deals and look closely at your hiring policies for a business that can’t help but succeed.
