12 Sep How to Save Your Business Thousands Each Month
For the majority of small business owners, cash is most definitely king. In hopes of increasing their bottom line, business owners often pay themselves much less than they deserve. The truth is, you have to spend money to make money. That being said, there’s no reason why you shouldn’t be saving wherever possible. While some tips work better than others, here are a few you can implement right away and start saving.
- Bootstrap as long as you can.
In an era of endless technology and knowledge, it’s probably “been done before”. Just because you have competition, doesn’t mean you’re too late. There’s always room to find your niche and provide value where your competitors can’t. This is actually a great way to save yourself time and money.
Whenever possible, look to work with larger companies and utilize their pre-existing technologies or infrastructure. You can either swap services or create a revenue-sharing agreement in exchange for access to their services. Ideally, they will allow you to white-label their products so you can create an original brand presence. This strategy will surely save you thousands and give your business time to build out your own products and or services.
- Optimize your purchasing power.
Taking advantage of group buying and collective purchasing is a great way to save cash. By joining these groups you’ll have access to discounts and exclusive rates on office supplies, hardware, business travel, and much more.
There are plenty of group buying services you can utilize based on your particular business needs. If you’re a smart business owner, you’ll never buy alone.
- Barter your way to growth.
If you’re looking to avoid cash outlays or unload slow-moving inventory you can always look to swap your products and services for others. Bartering with other companies can be time consuming, so if you’d rather not bargain with other companies directly you can always hire a commissioned barter broker.
- Free trials and consultations.
There’s no better way to save money than to get a service for free. Instead of investing large amounts of money in enterprise software for your business, you can find much less expensive SaaS tools to meet your needs. These services often provide free trials, some as long as a month. After the trial period is over, they’ll typically offer tiered pricing that allows you to pay as you scale your business. Whether it’s a payments solution, CRM software, or simple accounting tools, you should always start with a free trial.
Free consultations are very effective when seeking legal advice. If you’re just looking to get a few questions answered, use a few attorney’s and get a few consultations.
- Review your expenses quarterly.
Generally, you should be well aware of your expenses at all times. However, it’s best to do a full analysis quarterly to determine which expenses are necessary and which aren’t. Software that you used last quarter may be obsolete to your business now, so you’ll want to cancel that subscription. It’s easy to forget about all the various software and business tools you’ve signed up for over the years. It’s good to “trim the fat” each quarter so you can make every penny count.
Regardless the size of your business it’s very important to stay on top of your finances and be frugal. Especially for smaller companies, your growth depends heavily on how your currency is spent. If you implement these six strategies you can save your business thousands of money each month, so get out and build that business!