Indeed, you may find the theoretical advice to be nice, but when you are struggling to keep your business going, you may reach out for real help from the people. It can be good to have the views of the people who have gone through similar aspects that relate to your current situation. That is something really helpful, right?
Being a small business owner is a challenge. You have lots of things to cause you to worry. One of the biggest worries is money. Making money, spending money, you’re always worried about your finances. Everyone wants to know the most cost-effective ways of running a small business.
Here is some simple advice to help you with your small business finances:
Instead of funding your business out of your pocket, try and find someone willing to invest. The benefit of an angel investor is that they will provide the money for your business. The downside is that they’ll want a share of it. For example, someone may be willing to fund your business only if they get a 40% stake in it. Meaning that 40% of what your business makes, will go to your investor. The cost of funding a small business can be overwhelming, which is why investors are such a good idea. You’ll still make money, and you don’t have to worry about paying off a loan or using your savings.
If you choose to go with a loan for your business/franchise, then make sure you get the right loan for you. By knowing which type of loan is best for you, you can end up saving a whole lot of money. It can also make financing your business much easier.
Be wary of credit card fees!
When someone wants to purchase something via credit card, you will incur a charge. Saving money on credit card processing fees is important for small business owners. When someone wants to purchase something via credit card, you will incur a charge. Some companies can look to take advantage of you and overcharge this fee. Every little helps, and over time the processing fees can add up to a large sum of money. Alternatively, you can refuse to accept credit card payments and then you won’t have to pay any fee. It’s just one less cause for concern. Of course, the risk with this is that you may lose business because you’re cutting off a portion of the market. It depends on whatever you’re selling. If your business only sells high priced items, then people are more likely to use their credit card. But if your business sell cheap things, then customers are likely to pay in cash or by debit card.
Look for free marketing techniques!
Instead of paying someone to come up with an amazing marketing campaign, you can do some of it for free! You can market your business for free on various social media sites. Social media marketing can save you a heap of cash, and it’s simple to do. All you have to do is create a page, or account, on Facebook/Twitter/Google+ and begin posting. You can engage with potential customers on social media and increase the visibility of your business. Anything that’s free and can benefit your business, is a must.
Getting sponsors for events
Events can be considered as huge draws for both new and old customers. And interestingly, you can find businesses to rely on regular events, like seminars, to galas to expand their customer base effectively. It is advised to get the sponsors who would be carrying the expense of your business events in exchange for some form of advertising for their brand. It is usually a good trade for both the parties, that is for the small busi8ness that is hosting the vent and the sponsor who is paying for the expense! Remember that both the parties should be from the related domain and area for better compliance.
Outsourcing can be a good option
Hey, how about outsourcing the big projects for greater benefits. Indeed, for any project, you would need some employees to get the work done. But hiring the in-house team of the employees can be an expensive prospect. That is accountable for everything, right from the office space, salaries, and insurance!
Indeed, that could sway off a big chunk from the budget of any small scale business. Many successful small scale business opts to keep a minimum employee in their payroll and the rest, and they go for outsourcing. Opting for outsourcing can be effective in reducing the project budget and offering greater access to the latest technological advancements with the top experts in the field.
Negotiating with the vendors
Negotiation holds a great place for any business, whether a small-scale business or a large corporation. Indeed, negotiation is a relative term and can be used for opting better services from the other party, agreed? What you have been paying to the vendors do not have to be like a final wording whatever you are continuing to pay!
Ultimately, you see, the vendors are also striving hard to be in the game, and dealing with a tough economy like that persisting in the current scenario can be a challenging aspect for getting better raises. So, in this case, you can find many vendors who are willing to negotiate lower prices rather than losing a regular customer.
Thinking beyond the cash box!
How about the situation when your cash supply gets low? Indeed, this can be a common phenomenon in small scale businesses, and you must not close the door for what you are getting!
How about rethinking to the age-old practice of bartering? Yes, there are many small scale businesses that optimized the idea of bartering and offering their PR services in exchange for work to buy the interior design of the other party. That sounds really amazing, right? You can achieve this by an effective approach to vendor negotiation. Be ready. The worst answer you can get is a big NO! That’s it!
How about living in the cloud?
There are many marketing solutions that are given as a cloud solution! Yes, a cloud solution can be the first recommendation from the other person, even if you have not completed your question! But do you know the real small scale business people recommend the same approach of usage of the cloud! In short, you can avoid the cost of the expensive hardware and the software infrastructure by merely using the cloud-based services for hosting the data.
Cutting the extraneous employee expenses and not the employees
Many companies are there which used to provide free lunches for their employees, as the in-house staff, indeed for a short period! Why? Because the change in the economy forced them to rethink their extra expenses. Though you can see that in these cases, neither the employee nor the company wants to leave off the perks! But choices are always made for the financial favor in the board rooms, right?
Embracing the idea of telecommuting
Indeed, telecommuting cannot be an option for all businesses. Neither is it possible for all employees within a business. But when it is, it can prove to be an excellent money saver. You can keep things virtual and allow small businesses to avoid the expense of office space and the various ongoing expenses of office costs!
Finance issues can plague small business owner’s minds. It can lead to sleepless nights trying to balance everything out. Before you even have your business, you worry about funding. Finances can be a never-ending nightmare! All you need to do is look for the right tips and tricks to help you save money. The more money you save here and there, the more chance you will make a profit out of your business!