Did you know that most businesses end up failing in the first 18 months of being established? One of the biggest mistakes novice entrepreneurs make is focusing too much of their energy and resources on generating sales. Though important, what should be considered equally as significant is the lowering of company costs to maintain profitability. If methods of streamlining and saving aren’t approached, the expense of operating your business can become burdensome.
If you’ve been slacking on finding ways to stretch the company finances further, these tips should help get you back on track.
Negotiate with Vendors
You rely on other businesses to keep yours afloat. Everything from telephone services and office supplies to utilities and property leases adds to your overhead costs. Fortunately, most vendors are willing to work with their loyal customers to keep doing business. Consider contacting your vendors and suppliers to negotiate a better contract. Even if all you get is a $50 credit towards office supplies every year, that’s money that can be saved for other business costs.
No business can operate efficiently without a strong and reliable internet connection and phone service. Rather than try and find two separate service providers who will charge you individually for their products and services, look for companies that have promotions that include bundling or package deals to save more money. There are broadband internet providers that will also offer you local and long-distance services on your company phone. Since they’re packaging the services together, you’ll receive significant savings.
Use Free Tools and Software
When you’re just starting out in business and don’t have a lot of money to spare, the last thing you want to do is spend it all on expensive software and digital tools for the company. Though necessary to have, a lot of online tools and software can be downloaded or used for free online. You can find everything from invoicing and accounting software to document creation and project management tools. If your business expands and you need better quality tools and software, that would be the time to upgrade.
Outsource Important Roles
Entrepreneurs often have a lot of responsibilities on their plates and are unable to hire full-time staff to help out. As the costs of staffing for employers stem well beyond just a paycheck, it can be expensive to afford. To eliminate expenses like taxes, fringe benefits, and overhead costs, you can save a ton by outsourcing. Since they either work for themselves or for another company, you won’t have the many expenses that are attached to being an employer.
Minimize or Eliminate Paperwork
Thanks to modern advancements, the need for paper in office has declined. Where you can stop using paper altogether. This might mean going to the cloud and using storage accounts and file sharing software to collaborate with clients and/or staff. If your business requires that you use paper, try to reduce the amount you use by copying on both sides of the paper. You can also save some extra money by recycling the toners when you’re finished.
Barter for Products or Services
The great thing about having your own business is that you can put your products, services, and/or skills to good use. When you need certain things accomplished for the company, look for individuals or businesses that are willing to barter in lieu of getting paid in cash. For example, if you’re a blogger who needs a website, you might offer a web developer free advertising space or a promotional article written by you on your site in exchange for their services.
The only way your business continues to succeed is if you find a balance between putting out products and services that drive sales and consistently coming up with ways to cut back and stretch your company dollar further. Increased saving efforts not only allows you to put away cash for a rainy day or unexpected expense, but it allows you to invest company funds in other areas of your business which helps it to thrive.