5 Ways to Save Money as a Small Business Owner
The times have really gotten tougher.
Small and large business owners should be more logical and practical especially when it comes to costs.
The higher the operational expenses are, the leaner the overall profitability becomes.
Small businesses may not afford to live up with very hefty operational costs.
The most successful small ventures today are those that have effectively lowered their operational expenses without compromising scale, quality, and effectiveness.
Not surprisingly, many small business owners have come up with their own unexpected ways and strategies to trim down operational costs.
It is possible to save money without significantly changing the currently stable business practices.
Here are five recommended ways to do so.
1. Shorten the Payment Cycle
Small business owners usually give their clients about 30 days to 60 days to settle their invoices.
If you can shorten those terms, your venture will definitely stand to save more money.
Shortened time for turnaround can possibly lead to lower borrowing costs for operating capital.
It can cut the interest payments your business has to pay for taking loans just to make up for the unpaid invoices.
The downside to this strategy is that some clients may be lost, although if your goods and services are really excellent, this may not be a problem.
2. Use Free Advertising
Try using guerilla marketing.
It can be very effective but not costly.
Scour through local business directories and yellow pages.
Identify your competitors that may have disconnected telephone numbers or abandoned Websites.
Contact your community telephone company to ask it to assign the disconnected numbers to you.
Ask domain registrars to redirect visitors of abandoned or non-operational Websites to your own online site.
Your small business can reap the benefits of yellow page advertising as well as higher Web traffic.
3. Sell Global and Ship Local
Your small business may be spending a lot on shipping costs.
It will save more if such expenses can be significantly lowered.
Furthermore, expanding the coverage of sales to global can be undertaken without requiring much for shipping.
Coordinate with global shipment firms that operate warehouses in various countries.
This way, if customers from London place orders (for instance), the shipping company’s UK operations will take care of the delivery and charge you with local fees.
It may store your goods at its local warehouses.
4. Switch to Paperless Operations
Your small business will surely save thousands of dollars each year by making the switch to online or e-forms from paper forms.
The money your operations can save can possibly cover automation costs for your entire processing procedure.
5. Operate at Home
Your small business may save much more if it will not spend on monthly rental for office or working space.
You may set up your small business office in an unused portion or room in your own home.
This is more ideal if you do not have many staff.
Just consider moving to a bigger space when the business expands and increases in scale.