When you are the owner of a small business, you are on your own, winging it a lot of the time in the first few years. Owning your own business has its fair share of both ups and downs and things can be unpredictable. The only thing you know for certain is that you need cash flow in order to stay afloat.
When it comes to statistics, there are many of them out there concerning small businesses and they are not very encouraging. In fact, one discouraging statistic is that over 95 percent of businesses fail within 10 years. The main reason is that many business owners fail to properly manage their money. When you can’t pay your taxes, bills and employees, you will not stay in business very long.
Even if you are a passionate, smart and innovative business owner, you will not remain profitable if you are wasting resources. Here are a few ways in which a business owner can save money and not only survive, but perhaps even thrive.
Set Some Cash Aside
You gathered funds to get your small business off the ground and up and running. Now that you have some cash coming in, set aside some of it in a high-interest account. You may have a savings account and access to those funds when you need them, but probably at quite a low-interest rate.
Consider starting a savings account that requires you wait a certain period of time before you can withdraw funds. These type of accounts usually require a minimum deposit for at least three years. But the interest rates are higher and you won’t be tempted to spend the money.
Office Equipment Leasing
Leasing your office equipment helps in many ways. It helps keep your equipment up-to-date and hedges against obsolescence and it allows you to pay nothing up front, which helps keep cash flowing.
It is far easier to budget in a monthly payment for office equipment than having to figure out where to get big chunks of money to buy it. Just think how much money you will save by not having to buy updated equipment every couple of years.
Invest in Content Marketing
It is more difficult than ever to get customers through advertising. It is far too easy for people to skip over a YouTube video or fast-forward through a television commercial. Your customers also listen to ad-free radio instead of top 40 on the radio, don’t buy magazines anymore and have never read a newspaper.
If you are using mediums like newspapers and the phone books to market your business, you are just wasting money. Instead, find an excellent internet marketing company and invest in a company blog, photos and social media strategy. The efforts will be effective and you will see a surge in business and many because of it.
Hire Independent Contractors
You might want your business staffed with several full-time employees, but it can be expensive. It might make more sense when starting a business to save money by hiring contracted workers.
In doing so, you save on office space, insurance and healthcare costs. This doesn’t have to be permanent, you can hire a full staff down the road when finances are better.
Get a Suite Deal
Establishing a home for your business can be a huge drain on cash flow. Let’s face it, rent is not cheap. If it is at all possible, be as mobile as you can to save money. If you can get away with investing in a kiosk and good location at the mall, go for it.
If you need office space for your business, take the time to find a suitable place with a great deal. You don’t need to have your new business in the fanciest and most expensive building in the city.
For the stuff you will need in your office that you can’t lease, buy used and save some money. You can also use recycled paper products and recycled printer cartridges to save money.
You are a business owner and that makes you somewhat an expert on whatever your business sells or does. So put that knowledge to good use by offering classes or writing articles about your products or services. This makes you look good in the eye of the public and is basically free advertising.
Find a Partner
Get chummy with a neighboring business and split promotion costs on sales and such. You could even share mailing lists and learn which suppliers have the best deals by making friends with another business owner.
Tap into your local college and hire interns to do anything from PR assistance to art design. It is a beautiful relationship as the students need the credits and the experience and you need inexpensive labor that saves you money.
If you own a business, you need to be on the lookout for money saving solution all of the time. Save money on office equipment by contacting Trimarc.