The grind of a small business owner never ends, and unfortunately, neither does the expenses. Though you have to spend money to make money, there are always ways to manage and scale back so that you don’t endanger your company. Consider these five practical methods.
Don’t Overstaff
Working fewer hours is the dream, so when you have the money to pay for extra help, it may seem obvious to jump at the opportunity. However, salary wages can quickly add up. While your business is still small, it is smart to only hire enough help to sustain. If you end up short-staffed every now and then, step in to ensure that things stay afloat. In the event that your staff is already too large, offer your sincerest apologies as you scale back hours.
Outsource
As appealing as an in-house staff sounds, this route comes with a world of drawbacks. As mentioned before, extending employment can be a pocket drainer, especially when considering benefits, insurance costs, and the whole nine yards. In this day in age, there are a ton of freelancers and agencies that will handle vital tasks, such as accounting, sales, marketing, and anything else that you can think of, and many of their prices fall under the cost of an employee or department.
Hire Consultants
If you don’t know the way, hire someone to inform you. Consultants are so helpful as they can teach you the tricks of the trade, but you don’t have to worry about using them long term. They are available everywhere and will often charge by the session, sharing everything you need to know so that you can skip the trial and error phase. For example, a sales consultant can train your entire staff to generate more revenue, while a parcel shipping consultant can help you reduce your shipping costs, saving you a fortune over time.
Get Smart About Marketing
Going door to door, printing out countless flyers, and dishing out for ad costs is not only time consuming, but it may be eating away at your finances. Fortunately, we live in a digital era where people do much bulk of their shopping online. That said, you can market your business using your website, social media pages, brand ambassadors and influencers, and by paying a reasonable fee to be featured on popular platforms. While do-it-yourself marketing is a great way to save money, hiring a digital marketing expert can strengthen your efforts as they will help you understand how to connect with your target audience, turn inquiries into sales, and ditch the dead-end marketing strategies so that you can reap the fruits of your labor.
Negotiate With Vendors
Treat your vendors just as you would a car salesman. Always negotiate the price. With a bit of persuasive persistence, some may budge on your first attempt, but others may require a longer business relationship before they lower their prices. For those cases, make sure that your payments are prompt and in full for about three months. Once you have proven your reliability, try for a better price. If they refuse to work with you, consider taking your business elsewhere. There are plenty of vendors to choose from.
A few dollars here and there will eventually lead to several thousands of wasted cash. In order for your small business to bring you big rewards, you have to be smart about where you are investing your money. As you grow towards your potential, only spend what is absolutely necessary at the moment.
