According to an interesting article published by Forbes in 2018, the global statistics for businesses that actually make it past the 1st year mark is 80%. That sounds quite impressive, doesn’t it? Well, it’s not really, because if you dig into the statistics a little deeper, you will find that only 50% of those businesses make it past the 5th year of business. The Telegraph actually released a piece in 2016 of an entrepreneur who spoke about her failure in business and many entrepreneurs can actually relate to this.
The stories and statistics aside, it cannot be overlooked that money is often the root of a business’s failure. Whether it is a lack of capital, poor money management, or being unable to save money (over-spending) – money seems to be at the root of it all. While we cannot tackle all problems at once, today seems like a good one to tackle the topic of saving money.
Tips for Saving Your Business Money
Some of these tips might come as a surprise or seem a bit obscure, but when you add up all of the savings at the end of the day, you will see how beneficial it can be to start making these changes within your own business. Without much further ado, find 5 tips for saving your business money below.
Outsource business services.
Hiring full-time employees come at additional costs. Think of leave pay, sick leave, increases, and so on. When outsourcing your business services, you can have a professional handle certain aspects of the business and only pay for the amount of work done. You won’t have to worry about training and possible unhappiness in the workplace. You can even elect to have outsourced staff only on certain days of the week. It’s a great way to cut back on costs.
Give your cash-flow a break.
If you are always dipping into your cash flow, you might find that it soon dries up. Cash flow is essential for the daily running of your business. You shouldn’t be using it to buy stock or propel the business. To give your cash flow a break, consider taking out an SME loan or opt for a merchant cash advance. This gives you the cash you need while allowing your business to operate as per normal (while paying the loan back in affordable installments). You can find SME loans here, or do a bit of research online to find a business loan that meets with your requirements. Don’t worry, not all lenders require a perfect credit score to grant a loan.
Embrace cloud workspaces.
If it is costing you to send staff members from the office to clients, or even if it is costing you to have staff members that come into work; consider taking your business to the cloud. Most businesses can do without a set office building these days. If you deal with stock, you could hire a warehouse or storage facility. Allow staff members to work from home, ensure all company information is in the cloud and available to the right people, and encourage clients to connect with you on digital platforms, such as email, social media, or WhatsApp. The cost of traveling/commuting, equipment, internet services, office hire – all of this will become minimal.
DIY – Do It Yourself!
It becomes easy to pay someone to provide your business with a service, but that’s not wise for your budget. If there is something that you can do in-house without it costing as much as an external service, do it! Think about washing company vehicles, do it in-house. Think about who supplies the coffee at work? Perhaps you can get cheaper brands at the supermarket. Shop around yourself for cheaper service providers too. Before you pay for a service, first ask yourself; can I do this myself for cheaper?
Buy second-hand equipment.
Equipment is often one of the biggest spends that a company makes. Do your bit for the environment and your budget by investigating pre-owned items of equipment. Some entrepreneurs even get themselves into serious debt buying equipment on store credit. Anything new is bound to cost a lot, but second-hand equipment can save you quite a chunk of change. RB Auction clearly presents the concept and benefits of buying second-hand equipment in their feature article entitled “5 advantages to buying used vs. new heavy equipment”.
If you are ready to do the work to make sure that your business makes it through the first year, second year, and even the fifth year and beyond, take these tips into consideration. Make a list of all the ways in which you can help your business to save money – you will find that it’s very worth it!
Byron Simpson is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance cent.