It’s just as important in many ways to save money as it is to make it. After all, each dollar you can keep from leaving your business is a dollar less you have to earn – or you can still earn it and improve the bottom line further.
There are various way to save money; some of them are basic and easy, and while they may not seem far-reaching, added together they’ll add up to useful savings over the year.
While you almost certainly need a computer and some software relevant to your activities, it’s easy to make savings and efficiencies.
Rather than having to start again with certain types of software when your business grows, software that integrates accounting and other key activities such as stock and sales reporting in a package that grows with you could save considerable sums in the long run.
When buying computer equipment do you need brand new? If older yet well-maintained equipment will meet your needs you could save considerably bearing in mind how tech generally depreciates quickly.
This is as simple as listing your business outgoings and seeing if they can be reduced.
Utilities such as power, heating, phone and internet are worth checking; what are you paying compared to other competitive rates available?
The same applies to other things such as, say, bottled water for the drinks machine and office cleaning – indeed, any service you currently pay for.
Your actual business suppliers should be negotiated with. Maybe you’re a higher volume purchaser now so could have a discount?
Would they offer a discount for earlier payment? If not, then maybe hold on before paying them in future (not as in making a late payment but the latest possible under the terms you operate under with them).
After all, the money might just as well stay in your account a little longer gaining interest.
Also, don’t be afraid of talking to potential new suppliers to see what they could offer.
Especially if you need a sales boost, but even if what you presently do is producing acceptable results it’s worth looking into alternatives.
Maybe you’ve shied away from social media or only use it sparingly; if so why not look into it? Social media offers the potential to market in a very focused yet inexpensive way – you could save money compared to other methods such as print advertising and direct mail.
If you have any loans or financing it’s worth checking you’re getting the best deal compared to alternatives.
The loan and finance market is very competitive so ensure your present provider isn’t being eclipsed by competitors.
Always shop around when buying or even renting something.
A good rule of thumb is to ask three different suppliers of a service or product you’re thinking of buying for a quotation. This should apply even if you’re going back to a trusted source – for example, a favored electrical contractor to undertake a project.
If they’re higher than the best quote, you can judge if the new people are worth going with or whether to give the company you know a chance to be more competitive.
When items such as insurance policies are near their expiry date don’t renew without comparing what else is on offer.
The time and effort you spend on saving costs is well worth it and it needn’t take long either. Even better is to schedule regular reviews of expenses and mark when things renew so you have ample time to check out alternatives.
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