Outgoings are the single biggest killer of independent businesses. Whether that be stock, wages, tax, rent or mortgage payments; these outgoings can add up to a serious amount at the end of each month. As such, we have collated a list of tips and tricks from other small business owners that have managed to survive the tough economy and come out stronger than ever.
Outsource What You Can
There has been a real boom in hiring freelancers over recent years, and for a good reason too. Employees cost money, and it’s not just their salaries either; it’s the insurance and the office space and the utility bills and all of that stuff. What’s more, the pool of freelancers is growing more and more every week. So whether it is HR consultancy you require, IT support, designers or content writers, or whatever, have a look at this option. Freelancers get paid for individual tasks, or for a set time, and this will start cutting your costs dramatically.
There is no need to hire an ad agency to deal with your marketing unless you are a global business or a film production company. Okay, that’s an exaggeration, but you get the point. There are so many ways to market your business in a cost-effective way, from social media to internet advertising through places like Google Adwords. So do your research and start saving money.
Get The Best Deal
This can be achieved in lots of different ways. It could be that you start negotiating with your vendors, or your landlord, simply because what you’ve been paying doesn’t have to be what you keep paying. If they value you as a customer, then they will usually be willing to talk about giving you a slight reduction, which, once added up could a lot of money. The other things you could be doing is looking for better deals online. There are money-saving websites everywhere, and a lot of savvy ways to improve on certain areas. For example, if you are a retailer, why not see where you can get the lowest credit card processing rates and watch your pockets fill again.
It is time to start reviewing all expenses, even the teeny-tiny ones that you think are irrelevant. Yes, it is classified as smart business practice, but a lot of businesses overlook this area due to the time consumption and the fact it is boring. But even small cuts in certain expensive can lead to huge savings over the course of a year. As a rule, if it isn’t giving you a return on your investment, then cut back on it a bit, and if it is completely extraneous they cut it out completely.
Keep the Cash Rolling In
There are times when all independent business starts finding that cash flow is getting tight, but that doesn’t mean you can’t try different methods of getting your way. Yes, there is the old fashioned way of bartering. However, there are also clever ways of ensuring a trickle of cash is coming in. For example, why not ask your suppliers for a deposit, especially on large orders or speciality purchases. All you have to do is phrase it properly. Say you need 25% up front for bulk buys or that a deposit will ensure delivery is met on time.