Friday, May 20, 2016, AM | Leave Comment
Saving money as a small business is one of the most difficult challenges to face, especially earlier on in the business. Saving, however, is incredibly important for many reasons.
If the company is saving, then it’s making a profit. If the business is constantly borrowing money, then it isn’t making money.
Saving money doesn’t just mean building up a pile of cash to have on hand, but saving can mean making the business cost less and in turn make more money.
The following examples will show some simple and practical ways that all small businesses can save money.
One of the easiest places to spend a lot of money in a small business is advertising. Advertising is incredibly important of course for any small business to succeed, but there are some simple ways to save money on advertising while still running a successful advertising campaign.
One of these ways is by utilizing social media to advertise. Putting pictures, updates, and even sales on social media is one of the easiest ways to connect with people, and it is very easy to place a link to your social media pages on your website and business cards. Social media doesn’t cost anything either.
Furthermore, running a word of mouth campaign is another easy source of free advertising, and it is by far one of the most successful because people aren’t hearing or seeing it on a billboard. They hear it from their friends and people they trust.
A simple way to implement this is place an incentive for people to bring in sales by giving benefits and/or discounts to people who bring referrals.
This may bring in slightly less income from one person, but bringing in more and more customers from referrals is far more income than running no referral program.
A Good Plan
Another thing every small business needs to save money is a plan. Having goals and visions can drastically change the outlook and success of a small business.
Knowing the exact count of everything that goes into your product, knowing exactly how many hours your employees work, and knowing their productivity are the first steps to having a plan.
When you know these things, you can plan how to save money. If one employee can make 10 items of “x” in an hour, then working with them to form a plan on how to get them to 11, 12, and beyond can produce more products per hour.
This saves the business money. This works across the board in all aspects of the business. If the owner knows, sees, and understands every part of their business, then they can make plans to make efficiency upgrades and cut costs. Without a plan, the business perishes.
It’s important for businesses to stay current with tech trends that can help their business grow. This can range from things like social media to advanced software and website design.
For example, a tax professional can greatly benefit from tax practice software. Using software like this can help professionals stay organized and organize client tasks.
It’s also important to update your computers, phone systems and more so that you can get tasks done quicker and keep up with competition.
People run the business. People build the product and people buy the product. People run the businesses that make the products that make your products. With this in mind, the final thing every small business needs to save money is good relationships with people.
Being able to relate to a customer can make the difference whether or not they come back. Forming good relationships with the employees can make them work harder for longer, and this saves the business money.
Working with vendors, sponsors, and suppliers can create great relationships that allow the business to get better deals and lower prices on the supply products.
Having great relationships can make or break a small business, and although it may be going slightly out of the way sometimes, it is exponentially beneficial to the business’s success in saving money and, most importantly, profit.
Saving money and making more profit hinges on being successful in these areas, and they are places many small businesses can improve. It’s important to take a good look at these areas and see how your business can benefit from making changes.Facebook.com/doable.finance