How to Save on More Money for Your Business
Wednesday, January 20, 2021, 6:00 PM | Leave Comment
Saving more money for your business means more investable capital that can be allocated towards equipment or machinery upgrades, new marketing channels, top industry talent, etcetera.
Taking the wrong approach, however, can have drastically opposite effects on your money-saving goals.
Here are seven tips on how to save more money for your business while avoiding any undesired side effects:
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Go for Modern Advertising Campaigns
Traditional advertising methods, such as billboards, product placement on TV shows and movies, radio airtime, and even physical banners and flyers, tend to be relatively more expensive than today’s web-based alternatives. Internet marketing comes as a low-cost alternative that better suits businesses with a smaller marketing budget. Advertise on social media, create YouTube videos, write search-engine-optimized content, and host online contests and promotions to attract leads.
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Find Sponsors for Your Events
Social events play an important role in expanding a business’ client base. Galas and seminars are also a great way to meet potential business partners and employees. But shouldering the expenses of events you’ve lined up can cost a pretty penny. Offset these costs by looking for people who are willing to sponsor your event in exchange for giving them some advertising space on your event. For instance, you can find restaurants or caterers who will sponsor your food in exchange for center placement of their brand name on tablecloths, menus, and other items at the event.
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Outsource to Independent Contractors
The hourly rate of independent contractors may be higher than what you’d pay an employee, but it’s actually more affordable when you factor in other employee-related costs, such as health and dental insurance, contribution-matched retirement plans, annual salaries, and office space leases. You can bypass these expenses by outsourcing to independent contractors, which only charge a fixed rate. Platforms, like Upwork and Freelancer, have made it easier for businesses to find talented professionals. You can check for their hourly rates, past projects, and customer reviews to gauge their quality of work and compatibility with your business’ needs.
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Renegotiate Your Vendor Contracts
The costs you pay to your suppliers and distributors aren’t a permanent agreement. Renegotiate your rates, especially if your business has made some progress since the initial contract was drawn up. For instance, if your monthly orders have increased tenfold or your business has expanded to new territories, it is something you can leverage with your merchant services provider or your raw materials supplier.
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Buy in Large Quantities
Business supplies can eat up a huge chunk of your operating capital. Paper, printer ink, ball-point pens, cables and wires, food and beverages for the break room, utensils, and other supplies are frequently used items in any business setting. You can lower your cost per unit by buying in larger quantities. Vendors will be more compelled to give you a better rate if you are placing larger orders. Buying bulk also lets you skip the middle-man suppliers and buy straight from the source. You can find online directories that can point you to the right people to talk to about wholesale orders in a particular product category.
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Minimize Waste
Waste can come in different forms – unnecessarily long meetings that take up everyone’s valuable morning hours, supplies that don’t get used but are still reordered every month, and marketing channels that fail to bring in leads. These expenses not only cost you money, but it can also cost time and manpower, resources that are equally important and equally limited. Cut them out of your business early before they inflict more damage to your business’ finances.
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Take Advantage of Open Source Software
Software runs most modern businesses, at least to some degree. But you could find yourself spending hundreds or thousands of dollars on software investments, upkeep, and troubleshooting. Open-source software is a low-cost alternative to keep your business running efficiently through technology. You can use open-source software to accomplish a variety of tasks and processes, including building digital products, raising brand awareness, engaging existing customers, and managing remote workforces.
These are only the tip of the iceberg when it comes to ways on how you can transform your business into a leaner money-making machine. Explore other tactics, such as simplifying your distribution network, building partnerships for marketing campaigns, bringing in interns, and considering guerilla and other traditional marketing methods. These strategies can effectively lower costs without compromising the underlying task or process.
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