4 Ways To Run A Cost Effective Business And Save MoneyFast Action Finance
If you are running a small business with significant monetary challenges, you may want to think about cutting down your expenses in order to become cost effective. Usually, this would mean downsizing the business and having a small scale operation that is sustainable on a small budget. The challenge here however is that you are probably already running a very small business. Here are 4 ways to cut those costs even further and keep you in business for longer while you figure out your next move.
Have a realistic business plan
Most businesses start failing while still in the planning phase. If you are looking to supply organic tomatoes to the local supermarket, you cannot expect to buy a cargo plane for the business. The fact is, you can only acquire assets that are relevant to your business. Do not run a business with extravagant expenses like cars and high end offices when the returns are rather limiting. At this point, you are already past the business plan. However, you will need to revisit it in order to make sure that you were being realistic. Only acquire assets that you really need as a business, and when you are not sure, you can lease them for a short while. This should save you a lot in unnecessary expenditure for the business.
Use your networks for marketing and advertising
It is usually very irresponsible to spend too much money on marketing and advertising, especially for a small business. This is because you will be paying a lot of people just to get the name of the business out there. A better idea is to use marketing networks. Have your own connections talking about what you are offering in order to inform their connections, thus growing the market awareness of your business. If for example you get two of your friends to talk about your products or services to their friends, you are likely to get more than four new people learning about your business.
The up side of this is actually that you will get all the market awareness for free. Simply avoid spending exorbitant amounts of money on tasks that you can accomplish by yourself. The social media is especially an effective platform that you and your friends can actually use to push the company in question and boost its market awareness.
Energy conservation actually works
Most people ignore the idea of conserving energy because it seems rather farfetched and in some cases even dreamy. The reality however is that you can actually cut down your utility bills by checking the energy consumption levels of your business. You could embrace the use of natural lighting in place of the artificial ones during the day. This may require adapting a modern building style in order to use a lot of glass walls and skylight designs within the commercial building. Also, you can choose simple concepts like tinting your glass walls to insulate the building against energy losses.
This will cut down both your heating and cooling expenses since the air outside is limited in its interference with the internal temperatures. Another option would be to use solar panels rather than relying on electricity. Solar panels will only cost you when buying them and when conducting maintenance work. This means you get to avoid the power bills, thus saving the business some money. You can also encourage your employees to turn off their laptops when they are not using them. This will cut down on the power costs significantly.
Check your phone and internet bills
It can be understood that as a small business, youâ€™ve made a lot of calls and using the internet for networking with your clients among other things. The phone and internet bills are thus possibly some of the highest at the moment. This however does not have to be the case. Instead of investing in new or popular technology when it comes to your connectivity, you need to seek something cheap and functional. Find a particular telephone company that will cater to your business. This will prevent you from incurring high bills on your personal phone and transferring it to the business. Also, if you are paying for internet in the office, you may want to ensure that you get your moneyâ€™s worth in internet services.
Cutting down your expenses is an actual consideration that you should make when running a small business. This is because you will be having a lot of financial challenges and the sooner you learn to handle them, the better for the business. So while you plan to take out that car title loan in Toronto to run your small business, try free up some money for paying it back faster. You may not be able to see the result instantly, but you certainly will appreciate the lower bills eventually!