If you own a small business, you know how important it is to manage your cash flow properly, and save as much money as possible. However, it is very easy to spend money that you do not have, which can result in financial distress down the road. Impulse buying can really take a toll on your company’s finances.
For example, does it make sense to buy your employees new computers or laptops if the ones they are currently using work fine? Probably not, but business owner, just like consumers, often buy things based on emotion. Balboa Capital thought it would benefit our blog readers to feature an article with tips on how to trim business spending.
Only buy what you need.
Small business owners like to splurge on things like computers, tablets, gadgets and fancy employee lunches. However, think of how they feel when they see their expense accounts each month. On top of that, the interest rates for business credit cards are rising each year.
A smart business strategy is to keep a lid on discretionary spending and only buy what is necessary for your company and your employees. When you do need to make a purchase, evaluate your financing options. It might be advantageous to finance business equipment instead of buying it outright.
Be a smart shopper.
When you own a small business, you will have a variety of expenses. Rent, office supplies, Internet service, electricity and payments to independent contractors can all add up. To save cash, shop around for the best deals and try negotiating for lower prices. You can shop online or at brick-and-mortar stores for some nice money-saving deals.
Next, it will not hurt to ask your vendors or suppliers for lower prices or special discounts. They want to keep their valued customers who pay their bills on time, so they might be flexible with their prices.
Market your business online.
Traditional marketing strategies such as print ads, direct mail, and local television and radio commercials can be quite expensive. To be effective, these efforts need to reach your target audience a number of times in order to create top-of-mind awareness. You can cut your marketing budget by implementing some of today’s most popular online strategies.
Consider launching a mobile version of your website, running a targeted email campaign, and promoting your small business through social media applications. You can also join LinkedIn groups that focus on your particular business industry. This is a great way to promote your company and network with other business professionals.