10 Money-saving Tips for Small Businesses
Updated: Mar 25, 2021
Planning your budget is an essential task to do especially at the start of a new project or business year. It allows you to see where your money goes and where it comes in. Having no budget plan is like walking blind in a dangerous track. You have to see where you want to go and how to get there. Hence, this is why in this article we will give 10 essential things to do to save money in your budget planning.
1. Have realistic goals
Too often, many small business owners fall into the habit of setting unrealistic goals that are too high for them to achieve as of the moment. This makes them take more risks than manageable and causes major losses.
This is why you nee to take a good look at your business as a whole like the products and services that you can offer, demand and customer reach, then set financial goals for each of them. What’s even more important is to outline how you are going to achieve them. Then once you got that down, set your next goal to plan your next step.
Look across your business at the range of products or services you offer and set a realistic financial target for each. Then break down how you are going to reach that target so that you have a clear plan that will help you to get there. It’s also worth having follow-up goals, so if you reach your target early, you know where you’re going next
2. Raise money
Sometimes we have an idea that we know is going to be a massive hit, but we do not have any means of executing them until an investment comes along. This is the story of many successful businesses today. Most often our capital is not enough to execute our business goals and we need extra capital. This is where investors come along.
There are many kinds of investors for instance, there are angel investors and venture capitalists who can help invest in your business if they see that it is promising. To convince them that your business is worth investing into, this is where the next tip comes in.
3. Develop a plan
Know how to manage your accounts. Most business owners fail to do this seemingly basic task without knowing the impact it might bring to their business. Manage your accounts to carefully examine and know where you are earning profits and how you can reinvest it onto your company. This will also enable you to have future budget plans and to mitigate any unforeseen circumstances. Having a solid financial plan helps you to attract more investors as well as they can clearly see what they will get themselves into.
4. Make the most of your accountant
Speaking of managing your accounts, one great way to do it is by hiring an accountant. Not only could they give you professional help and advice, but they can also give you a competitive advantage. They are a grea asset to the growth of your business so make sure to have a good relationship with them!
5. Manage recruitment
When it comes to hiring, you want to get the right person as soon as possible. This is because as small businesses, we do not have the luxury of hiring a deadweight in the company who won’t be of any value to us. Make sure to hire the person with the right set of skills and mindset that you are looking for.
Attitude is also another important consideration. You wouldn’t want somebody who interrupts your team’s flow just because they can’t get along with others. Make sure that they are also open for learning new skills and are happy to be trained. This will make them more valuable to your company over time instead of being a liability.
6. Outsource when necessary
There are times when hiring a full-time employee is more expensive than simply outsourcing a product or service. This is where Virtual Assistants (VA’s) come in. Not only will they save your time and money, but they are also efficient. They can offer a wide range of services like bookkeeping, secretarial jobs, administrative work, and even on marketing.
7. Use online tools
The internet is a vast place and with it, there are countless tools you can use online to help manage your business. Depending on the type of service that you want, there will always be a tool online that will help you do it more efficiently. Some of the tasks that you can make more efficient using online tools are, website making (using wix.com), logo design (using canva), task management (Monday.com) and many more.
8. Develop negotiation skills
Whether you are buying materials for your product, or looking to hire someone for a service, having good negotiation skills can help you save a lot of money. Negotiation is a must-have skill for every business owner. This is because you can streamline your spending (i.e. negotiate your lease) and have some savings as well. Remember to not push the boundaries too much when negotiating as it may make you seem like a cheapskate rather than a wise business owner.
9. Marketing is key!
Marketing doesn’t have to be very expensive. To be a successful business owner, you don’t necessarily need to pay millions of dollars to get your advertise on air on television or radios. Remember that marketing is all about reaching your target audience and letting them know why they should buy from you.
In the advent of the digital age, this has become much easier. Using various platforms of social media like Facebook, Instagram or twitter, you too can reach your target audience at a much more cost-effective way.
10. Take care of your clients
It is important to not only create new clients, but all keep the ones that you already have. Make sure that hey will return to you at a regular rate because they will be the ones who can help your business generate a stable income. You can take care of loyal clients by implementing things like loyalty programs, discounts or any other special offer that will entice them to stay with you.
Having a good business and financial plan can help you as a business owner know and keep track of your expenses and profits. This will also help you entice investors to help you grow your business even further. Hence, by following these tips in this article, you are already several steps ahead of the competition!