When you’re running a small business you constantly find yourself being squeezed by increases in expenses which makes it all the more important to keep costs under control. As a small business owner you should always be on the lookout for ways to improve your cash flow and while increasing sales is the most obvious answer, there are other just as effective ways to increase your business cash. One of the quickest is to reduce your company expenses and here are 3 ways you can do it.
Negotiate with Suppliers
The beginning of the year or the financial quarter is the best time to be doing this, but it’s always worth a shot at any other time of the year. If you don’t like the terms and prices your suppliers are offering its time to shop around. It is, however, a fine balancing act because you don’t want to be cutting off your nose to spite your face and end up with no deal at all. One area you always want to commit to, however, is your utilities. Unlike warehouse or manufacturing suppliers, utilities companies treat you as a customer. This means you are almost guaranteed to find a better option if you use business energy brokers such as Utility Bidder to help you find the best possible deal.
Cut Staffing Costs
If your business regularly experiences slow times, you need to look at ways to reduce your staffing costs during these lean periods. You may have employees who would appreciate unpaid time off. Broach the subject with them and you might be surprised by their responses. Have you any family members who would be willing to lend a hand? If your children are old enough why not encourage them to become involved in your business? Learning about a business can be an excellent experience for young people and it’s bound to look good on their resume.
Cut the Cost of Advertising
With an increasing number of consumers using the internet to research purchases and services your advertising costs no longer have to be high. Using platforms such as Facebook, Twitter, Instagram, and LinkedIn it’s possible to build an online presence and spend nothing at all. Start by creating your own website and then write a blog. Link your website to social media pages and spread the word about your business. Other ways to build your online presence include commenting on forums, giving away freebies and posting regular content that’s engaging and informative.
The business world is going through a time of uncertainty, costs are on the rise and many economies are dragging. This means that the small business owner has to tighten their belt. There are many ways in which you can cut costs but the three mentioned above can be done with little or no added investment. When times are hard, it helps to make cuts without having to spend more money. When things look brighter then you’ll be able to invest in more efficient equipment and into expanding your company. For the time being, however, concentrate on making small changes that require no extra expenditure.