Your small business is going to struggle if you don’t manage your budget well. You don’t have to have a huge budget to make your business a success, but you do have to manage the money that you DO have. You see it everywhere you go: airlines add extra charges to their prices, your insurance company is tacking on the dollars every month to make your insurance costs higher year on year. Small businesses tend to suffer when they are financially squeezed and if you don’t make a plan for your cash, you can find that your company will be first on the list to fold.
If your business is on a budget and you’re suddenly finding your business being squeezed, with each cent being stretched beyond your capabilities, then you need to work out how and where to spend your cash. Improving your business costs means reducing them and ensuring that your bottom line is taken care of properly. So, with all of this in mind, how can you improve your business costs and make your finances work better for you?
Office Space. One of the biggest costs in your business is going to be your office space. Rent is expensive enough, never mind if you choose to purchase your business premises. If you want to save money on your business space, consider the way that your company is run. For example, if you are on your own just you and a desk, consider looking into Novel’s office space locations for the best shared office space for just you. Sharing office space can make much more sense financially and it can give you more free money each month as the rent is for a desk, not a whole office.
Staffing. No one wants to make staff redundant or start firing people, but if you have a team of five people doing the work of two, then you need to start shrinking your staff numbers. In the slowest periods of your business, you could also afford to have two to three permanent sales team members compared to the ten or so you’d need in the busy seasons. So, choose to hire temp staff for the business during those busier periods than hire a permanent staff force.
Barter. If you are close enough to the businesses in your community, consider offering your services in exchange for theirs. It’s a good way to save money and it’s a great way to market yourself to their customers – and vice versa. You could make this your new way to attract customers while helping a fellow business out.
Cut Vehicles. It may have once been a perk to offer company cars to your staff, but you need to make cutbacks, which means that you need to recall those vehicles and get them sold. Vehicle costs aren’t just about the cost of the actual car, but the fuel, insurance and all the other things that come with paying for a car. Cutting back on the company cars can be a big deal for your bottom line.
Advertising Costs. Much of the marketing that matters today is done on social media. Not just because social media has the reach that most other marketing channels do not, but because it’s cheap! Social media campaigns cost an awful lot less than other channels, and as a cash-strapped business, you have to take the cheap marketing where you can. Cold calling and asking for referrals can also complement your social media strategies – so check out how you can save money on your marketing campaigns before you commit.
Cloud Computing. Right now, the money that you spend on large servers and IT agencies is huge. You could cut back on those costs by moving most of your business data storage to the cloud. It’s a great way to reduce costs and the ongoing IT related expenses. You don’t need to maintain giant server rooms and keep them cool when you can use virtual space instead. This relates directly back to paying for less office space, too, as you won’t have the need for huge pieces of equipment laying around.
Your business may be on a budget, but that doesn’t mean that you can let it fail. Take the time to work out where you business cash is going and then make some swift and brutal cuts to keep your expenses low. Your business will be far more successful if you are careful about where you spend your cash, so count wisely and allocate your funds the right way.
