The ballots are in as analysts warn that the next financial crisis will hit in 2020. Small business owners – take heed – and immediately start to save your business money. While the fall-out is anyone’s guess, it’s a good idea to begin getting your proverbial ducks in a row. General saving is a sensible place to start. With the cost of Australian living increasing and wages remaining low, small business owners should cut costs wherever they can. The good news is that if you have previously established patterns of spending, these can be curbed quite quickly. Starting with our top 10 tips.
10 Tips to Save your Business Money:
1. Staff costs instantly save your business money
People cost money. In fact, employees are one of the highest overheads in a company. While good people are hard to live without, think twice before automatically replacing staff that resign. You never know, the gap they leave behind might quickly be filled by an ambitious co-worker looking to impress. And if you eventually find that space should be filled, at least you were able to save your business a little money in the meantime.
2. Save power
We are often very aware of the cost of energy at home, but not at work. You can immediately save your business money by implementing energy saving scenarios scheduling lights and computers to automatically switch off after hours. Encourage staff to be green and be conscious of their carbon footprint.
3. Suspend buying
Ever considered how much your stationery costs your company per year? John Starr, a serial entrepreneur in the publishing and communications game has an interesting take. Randomly during the year, he bans buying stationary for at least a month. The staff makes do, and he saves himself 8 – 9% of his monthly overheads. Now imagine if you applied this concept to other unnecessary expenditure and closed these accounts outright. Another great way to save your business money.
4. Negotiate with suppliers
Remember the entrepreneur’s mantra: There is always a deal to be made. So make one with your supplier or utility provider. Take the time to negotiate the lowest rate or best package. And regularly revisit the deal as time goes by.
5. Take it to the Cloud
Every business needs some type of admin processing software. Instead of buying costly software for each and every employee, consider affordable Cloud-Based options like Office 365 or GSuite. You can acquire these at a fraction of the cost and is an efficient way to save money on server maintenance and power.
6. Cut down on meetings
This may seem like a strange way to save your business money. But just consider how much time is spent having ‘meetings about meetings’, instead of getting out there and completing tasks. Suddenly you begin to understand just how much time is wasted and what can be done in its place. Consider setting up a free Google Hangout for you meeting instead.
7. Save your capital and raise it in alternative ways
If you have any liquidity, hold on to it. If your business is older than 6 months old, you might qualify for a Merchant Financing. The is the new buzzword when it comes to quick loans for small business. This efficient product is easy to access and allows you to process repayments via your EFTPOS terminal as a percentage of every future card transaction. In other words, these repayments work in line with turnover and are hardly felt by the retailer. This is a huge money saver in the long run as it allows you to hang onto the cash you have. But won’t hold your business back from expanding as required.
8. Be your own Marketing and PR department
Hiring a PR or Marketing firm can be costly. The truth is that nobody cares about your product the way you do. So read all you can and familiarize yourself with industry standards. You may just become your company’s best spokesperson. There are many free courses online, Google’s Digital Garage and Hubspot Academy are two great examples.
9. When in doubt, go without.
Marketing leader Chris Hoyt advises that unnecessary spending is a No-No. Should you really purchase something? Do you really need that upgrade? Will it make a meaningful difference to the bottom line? If the answer is no, then put the company card away and think of something else.
10. Save with Skype & Aircall
This is such a simple one. Skype offers free internet calls. If you need a local number just purchase a Skype number. Why pay for a phone line when your Wifi can cover the costs. We love a real simple solution.
If you have a larger team be sure to check out the cloud-based call centre solution, Aircall. All the features of what the big telcos offer at a fraction of the cost.
Getting creative can save your business money
It makes sense that getting creative to save your business money takes a bunch of creative energy. But no one knows how to scrimp and save quite like an entrepreneur. So do what you got to do and find at least 5 small measures you can put to use today. Before you know it, and your business will be well on its way to financial health.
Speak with a lending specialist today about funding the growth of your business.