Hard times call for hard measures, and in the current economic climate, no business can last long without saving.
Saving money can make the difference between surviving another decade of business enterprising or phasing out in the midst of incessant economic challenges. When I say “save”, I don’t mean putting out some of your monthly profit (although that’s part of it); what I mean is cutting down on some expenses.
Being both an employee and an entrepreneur has exposed me to a lot of things. Some I learned by experience while others where passed on to me by well-meaning individuals who wanted to see me succeed.
Though my career as a businesswoman is a success story today, I wouldn’t have gotten to where I am if I didn’t tighten my belt when it mattered.
Scrimping and saving is very important to the survival of any business regardless of the size. Admittedly, small businesses and start-ups find it more difficult to save because of their shoestring budget.
However, learning how to tuck away some portion of your income will not only keep you in business, it will also make you more productive.
A recent study by Bloomberg shows that 8 out of every 10 small businesses fail within the first 18 months of operation.
Luckily, i didn’t have to wait for 18 months before I realized I needed to cut down on expenditures in order to remain in business.
If you find yourself struggling in business, then it might be because you’ve not learnt how to save yet. The tips I will be sharing below will teach you how.
Drive your car until it stops running
Some new inexperienced business owners, especially those that own large organisations, tend to change cars like clothes when they start making a lot of money in the first few months of business. Usually, it doesn’t take long before the result of such reckless spending begins to manifest. It is either a mountain of unpaid bills, or a lack of funds to inject into their business.
Cars are great assets but also a huge luxury. The cost of maintenance itself should bother you, not the mention when they are frequently being replaced.
Regardless of the amount you are making from your business; don’t always be in a hurry to change your car. Keep driving the one you have until it stops running. Instead of upgrading to a new model or brand every two or three years, consider putting aside the money for your business. You can also cut down the cost of maintenance by planning your schedules to reduce the time you will be the road.
Go paperless, as much as possible
Look for various ways to reduce paper use in your office. Instead of using new sheets, you can use waste papers to take notes. Opt for electronic file exchange rather than courier services. Using electronic devices like tablets eliminates the time and money spent on printing, scanning, and filing forms. Going paperless as much as possible is also good for your environment.
Use the internet efficiently
There are various ways you can save for your business by using the Internet. For instance, you can start your own search engine by researching various groups online for potential customers. Doing this can drive traffic to your site and boost your revenue. A good place to start is Usenet newsgroups.
You can also chat on these newsgroups on subjects related to your business. Besides conventional methods, it is another good way to market your product or service without spending any money. It will only take some of your time. This way you can gain more promotion without increasing your budget. Email marketing itself can be very useful for expanding your customer base and building more revenue.
You can also cut costs by using auction sites to sell your stuffs instead of building your own online store at first.
Another way to reduce your expenses is by being energy efficient. Regardless of the size of your business, you can reduce your lighting bills by 75% annually by using fluorescent bulbs or motion sensor lights.
Remember to turn out the lights in rooms where they are not being used and after you close for work every day. Do this for one year and you will be amazed at how much you would have saved from utility bills.
Don’t throw away everything
Not all junk should go to the trashcan. You many need to dispose stuffs like phones, bottles, printer cartridges, batteries, plastics, bags, cans, or any other faulty electronics. Instead of throwing them away, you can recycle them and get paid.
Consider buying used office furniture and equipment
This is very important, especially if you’re just starting out. Instead of buying new office equipment and furniture, you can go for used ones as long as they are still looking polished. A good place to look is Craigslist.
There are definitely other business-saving tips that were not discussed here. For instance, I didn’t talk about reducing your travel expenses and inventory. That’s just to show you how extensive your options are. I will leave you to figure them out. But one thing is sure—the more you look for ways to cut down your business expenses, the more you expand its bottom-line.
Originally published at zensavvymomma.com