8 Money Saving Tips For Small Business Owners
All entrepreneurs need to keep a watchful eye on their expenditure if they are to succeed in a tough economy, but for small business owners, there is likely to be even less room for any wasted outlay.
That said, cutting down on cost does not have to mean cutting the value of your business – there are many cost-effective practices that small business owners can try to save money, while still meeting targets. Using an investment app to put these savings to work is how entrepreneurs grow their personal wealth.
1. Don’t be afraid to negotiate
Providing it is within reason, there’s no harm in negotiating with your vendors. The worst you will get is a no, although many would rather agree on a lower price than lose a valuable customer. The same goes for your landlord; retail space can be one of the biggest expenses for a small business, so asking for a better deal could result in some serious savings.
2. Focus on inbound marketing
There’s no underestimating the power of advertising, but traditional methods can also be extremely costly. Instead, invest time in nailing your inbound marketing strategy. If done well, SEO rich content such as blog posts and YouTube videos can be an extremely effective way of generating traffic to your website.
Think carefully about how you engage with your customers. Even something as simple as a handwritten thank you note could go a long way in developing customer relations, and won’t cost you any more than the price of a stamp.
3. Consider the use of social media
Generating business through unpaid Facebook and Twitter advertising alone can be tricky, but even paid ads are going to be considerable cheaper than conventional advertising methods. Whether you choose clickable banner ads, or to boost your posts reach, social media can be an effective, and inexpensive way of engaging with potential customers.
Consider which is the right platform for your business. Restaurants, bars, and clothing brands tend to do well with Facebook, Pinterest, Twitter, and even Instagram users. While LinkedIn may be more suitable for traditionally less social businesses’, such as law firms.
Aside from reaching potential custom, LinkedIn can also be a useful way of sourcing talent, and will ultimately save on costly recruitment firms.
4. Not everything needs to be in-house
Full-time staff cost – it is not just salaries that you need to cover, but insurance, office space, benefits, and so on. If possible, keep your in-house employees to a minimum, and outsource what you need, when you need it. A freelancer earns based on output, which dramatically reduces the chance of paying for wasted hours. Not only is it easier to negotiate cost with independent contractors, but it also means you can choose specially trained individuals to complete tasks for which there isn’t a constant work stream.
5. Take a chance on new talent
For some roles, an in-house, full-time member of staff is the only option – but when you are hiring, think carefully about what you need from this person. Many employers are won over by experience, but experience also costs more. By investing in staff who are fresh out of graduate school, not only can you provide entry-level salary, but you will also be taking on individuals who have knowledge on the latest technology, while eager to learn and adapt.
6. Don’t forget the little things
Even the smallest of changes can build-up and create significant savings. It may be something as simple as asking your employees to turn their computers off when they are not in use, rather than leaving them in hibernation mode. Instead of taking international business calls, make the most of free services such as Skype, start buying your supplies in bulk – be creative, and reward staff for thinking of new, cost-effective ways of practice.
7. Sharing is caring
If you care about cutting cost, rent is an enormous expense for those not working from home. It may be worth considering sharing your office space with another company – to make things as smooth as possible, try finding a company who match your wavelength.
8. Understand your customer
It may seem simple, but in today’s digital era, it is more important than ever to know your customer. The internet is a big place, and if you are carrying out an online marketing strategy, spreading your resources too far is not only going to be expensive, but it is inefficient. Find out where your customers are, and focus your efforts there to truly get the results you are paying for.
The life of a small business owner is already a hectic one and by using the above tips to save money and ensuring you do not fall for common investment mistakes you will soon see your personal wealth soar.
What money saving tricks have helped you? Please share in the comments below.
featured image: depositphotos.com