Being a successful business owner is all about making money, but you should also consider cutting costs to help increase profitability or help you break even. Below, we’ve put together five top tips for saving money as a small business owner; read on and you’ll soon be on the up.
Outsource time-sucking tasks
If you’re spending too long on your day-to-day tasks as a small business owner, then you could consider outsourcing some of them to companies that will do it on the cheap. Marketing, for example, is a great way to spread the word about your business, but if you’re not a natural writer or an avid fan of social media, then it can be a time-consuming process. Find a company that offers affordable social media management, like 99social, and you’ll be able to save hundreds of hours of the year, to put to better use; like accounting, finding customers or working on projects.
Think about downsizing
Rent is one of the biggest costs many small businesses face, so consider downsizing to a shop or office that’s smaller and easier on the pocket. Do you really need a separate reception room and three office areas when a smaller office would do? Think practically; sure, you want to grow and expand in the future, but right now, you might be spending more than necessary on space.
Lay off staff
Many small business owners are incredibly loyal to their staff – and so they should be – but that loyalty can often lead to bad business decisions. If you’ve got an employee that’s not pulling their weight, or not helping you make more money, then they need to go. We’re not saying that it will be an easy decision, but in time, you’ll realise that cutting back on staff makes sense.
Advertising your business in the local newspaper or industry magazine is a good move, but more often than not, it doesn’t result in the sales or brand awareness you might expect. One of the best ways to combat this is to cut your advertising altogether, and experiment with digital techniques instead, like posting on My Friends Directory. An advert on Facebook is likely to be more cost-effective than one in a newspaper, so give it a go and see where it takes you; you might just be surprised!
Pull the plug on unprofitable products
Not all of your products and services are going to be popular, no matter how hard you try. If you have one line that isn’t performing well, then sell off old stock and cut your losses. That way, you’ll free up valuable space on your shelves – and space on the homepage of your website – to feature more popular products, which will no doubt lead to increased sales.