Economic times are tough and when
you’re a small business owner, little things can make a big difference in your
finances. You want to keep
customers and employees happy, and not cut too many things that can
affect them. Here are some ways to trim
the fat without creating a big impact on those important to you and your
business.
Cut
office supplies… paper anyone? The
amount of paper used in small businesses can be exorbitant, and often of little use. With
the trend towards paperless work environments, this is a great cost cutting
measure, and it in turn will reduce the expenses of copier toners and ink. Email. Have electronic agendas for meetings
that employees can pull up themselves. You’ll save on postage, too. As far as other supplies go, just go
easy on them. Don’t overbuy, and if your business truly is a small one, you
probably don’t need to invest in those 1,000 ballpoint pens to just have them
disappear over time.
Rethink
advertising budget Are you paying
for high dollar advertising? Is it working? Depending on your business, you can
probably cut some costs right here. These days, fewer companies are paying the
big bucks to advertise. For one, it’s costly. For two, word of mouth can be
your best friend. Make sure you have an active social network and web page, and
also offer discounts for referrals. Often when someone is looking for a certain
business, they post on Facebook to their local friends.
Pay
on time; get paid on time Check with
your suppliers and see if they offer a discount on paying by a certain date.
You can save some money here and you also improve relationships by showing your
reliability. Also, get paid yourself quickly. You can
offer a discount as well, and though it may seem you’ll be losing money, it
will benefit you to have the money in your bank account. You’ll be able to pay
cash more readily and keep credit card interest rates to a minimum.
Rethink
your inventory Do you need to
purchase so much at once? Do you have inventory piling up in a storage room? Buy
only what you need and if you are a service business, like a contractor, make
sure your customers can pay some upfront to help with the costs of supplies.
Don’t
buy new stuff If you need something
new, look at second hand or refurbished. You don’t always need the newest and best,
and you can save a lot of money by purchasing this way, and no one in your
office, business or your customers are affected.
You’ve got a lot of responsibility
being a business owner and two of those are keeping your finances out of the
red and keeping everyone happy. Try some
of these tactics and you may be able to pull off both!
About
the Author: Heather Legg is a freelance writer who covers topics relating to small business payroll and money saving tips.
