The old saying goes, “count your pennies and the dollars will take care of themselves”. While the penny may not exist anymore, the saying holds true today more than ever for small business owners. With the effects of the recession still being felt, many entrepreneurs are stretching every dollar they have to go the extra mile. Ongoing business expenses can add up quickly. Only those who can reduce those costs to a sustainable level will be able to prosper in economic challenges. Even small changes to reduce expenses and improve profitability can prevent more painful cuts later on.
Here are some considerations to help you save those hard-earned dollars.
1. Eliminate Unnecessary Spending.
Some may call you cheap, but being as frugal as possible will only benefit the business in the end. Ask yourself whether you need the item that you’re purchasing, and try to be completely honest. Assess the services you purchase and decide whether you should be decreasing the frequency of that service. Consider replacing the paid services with free ones. You can also consider using Skype instead of using a business phone at times to save money. These subtle reductions will add up over the course of time and can be well worth it.
2. Find Cost Effective Marketing Techniques.
Marketing and advertising can be quite costly when you factor in the cost for the production of flyers, business cards and for internet, newspaper and radio advertisements. But there are several cost effective solutions as well. Consider creating a webpage and utilize social media to its maximum potential with discounts and good content that will be useful for your clients. Feature positive reviews of your business on your page. You can also maximize the opportunity at the point-of-sale by including coupons and promotional flyers.
3. Buy Used/Rent Materials or Supplies.
Renting equipment or real estate will also work with a penny pinching budget. Ownership comes with a lot of responsibilities, and while it’s true that the purchase becomes an investment in the long run, money well-invested can go a long way as well. If you only use the particular piece of equipment occasionally, it is reasonable to rent on occasion until you require it on a more regular basis. Should you choose to buy the materials new, you can also share the items with others to gain maximum value.