Are you running a business? We bring you some of the finest strategies used by the most successful entrepreneurs. These tips can take you a long way in terms of gaining success at minimal cost. We are going to learn to cut expenses and save money while maximizing revenue growth. Read these six ideas and decide which ones make the most cents (pun intended) for your company.
1. Ask for Advice
Ask experienced small business owners or knowledgeable people within your professional (or personal) network who have experience with the types of obstacles you may be facing, or can expect to encounter at some point in the future. Mentors who can offer valuable advice are out there, free of charge.
If you strike out on finding some free, credible advice, then it might be more cost-efficient to pay for professional counselling rather than going at it alone, swinging in the dark. Maybe you need the service of a professional web development company who can help you launch your new site, or speak to a business attorney to confirm that you have the proper licenses in place for operation.
It might cost you a little up front, but the payoff can help you avoid very expensive mistakes down the road.
2. Hire the Right People
Always take your time during the hiring process to hire an employee who truly has their heart invested in the company and will be motivated to contribute to its success, rather than simply earning a pay check. Of course, education, experience, and talent are critical qualities as well, so look over their resume thoroughly to ensure they can fulfil their role responsibilities.
Also, be sure to screen conduct pre-employment screening on your candidates, as well, because some applicants may have potential red flags in their background that you can’t see on paper. Not sure where to get a background check? There are plenty of services online, and personal references from past employers and professional colleagues can provide invaluable insight, free of charge.
3. Outsource as Needed
You might be able to avoid payroll taxes if you can hire independent contractors for one-off jobs. You can find outsourced workers for nearly any service you need—from SEO pros to product photographers—available only when you needed it.
4. Barter Services with Local Businesses
This has been an effective business strategy for centuries, and it works especially well with small business owners in your local area. Maybe you own an HVAC company, and can ask for a couple gallons of paint from a neighbouring vendor in exchange for cleaning their A/C, for example.
Get creative and don’t be shy. You can exchange goods for services, trade assets or equipment, and move overstocked inventory in a way that benefits both parties. It never hurts to ask!
4. Find Partnerships with Suppliers
Find yourself a supplier to your best benefit. Look for someone who can provide high-quality material and timely deliveries at a fair or flexible price. You could ask for 30-90 days’ worth of credit to repay an invoice—and the right partnership will most likely agree without hesitation. That way, you can get an influx of cashflow before paying them back to keep your margins in the green.
It’s a way better option than taking out a loan to purchase overhead supplies, and you avoid the risk of slipping into the red—a threat most small business owners can’t afford to face.
5. Reps, Affiliate Partners, Distributors
Different names, same job. These professionals can help sell your products through their existing distributing channels for a small commission. You don’t need to pay them until they get the job done, allowing you to quickly build sales and preserving your cashflow until your product or service is successfully sold.
6. Get Resourceful
If possible, borrow a resource, like a tool or machinery, instead of buying a new one. If that’s not possible, you could simply rent most of these items, but if you’ll need to use it often, then buy it from a second-hand seller. You can find excellent pieces of equipment that you can get a hold of for dimes on the dollar. Go to auctions and business liquidations where you might hit the jackpot.
Every penny saved is a penny earned. Save money wherever you can to ensure your best chance of future success.