Money-saving Tips for the Small Business Entrepreneur

Many small business owners run their company on a tight budget, so every penny saved is worth hundreds. Running a small business is similar to walking on a tight rope, and small changes and mistakes can cause downturns and disasters. When you build a small business enterprise, getting tips from people who experienced the same situation is valuable.

Read on for some practical money-saving tips to sail through a tough economy. These tips will help you to reduce costs and still reach your target market to build your business.

1. Reduce traditional advertising costs

Internet and social media help to reduce the advertisement costs low in case of already struggling businesses. Investment in public relations and is a cheaper and effective option to build the brand than the advertisement. Include inbound marketing and reduce paid internet marketing by featuring in media outlets. Focus on SEO-optimized web content and create company videos to garner thousands of views to boost traffic to the company website.

2. Look for sponsors for company events.

Company events draw huge crowds from old and new customers, and regular events help to increase the customer base. Get sponsors for these events to exchange and attract more customers to your business. So, include sponsors in a similar business line to sponsor a joint event to increase customers.

3. Outsource

Employees are crucial to your business, but keeping many employees means depleting capital as their maintenance is high. Keep full-time staff to a minimum, and the rest of the work outsource to contract employees. Hire consultants for particular tasks and expertise to bring benefits with their varied experience.

4. Negotiate with vendors

Renegotiate with your vendors for discounts as you don’t need to continue paying what you have been paying. Vendors also require business in this tough economy, so negotiating for a lower price is possible than losing a customer. You will not lose anything while trying to save few hundred thousand dollars.

5. Think out of the box ideas for cash inflow

When cash flow reduces, don’t stop achieving what you set. Offer your services to other companies to barter services so that your cash flow is not affected. The worst answer could be No during a vendor negotiation, but you can turn it to hear a Yes if you work on it.

6. Use Cloud solutions

Invest in cloud solutions to cut expensive hardware costs to hosts data; instead of purchasing expensive software in-house, use a cloud-based annual subscription program. For example, GetMyInvoices is an excellent cloud-based end-to-end invoice management software. Save time by importing invoices automatically from portals and other sources. Configure automatic approval workflows and payments and even integrate with your bank to map your transactions.

7. Cut extra employee expenses.

The business provides many freebies to the employees reduces the costs by cutting down on those extra expenses. Provide the employee a weekly breakfast or lunch instead of daily perks.

8. Introduce telecommuting

Introduce telecommuting for internal and external business meetings to save commuting costs. Embracing virtual offices helps small business owners to avoid setting up expensive space and continuing operational costs. Try to convert some of the staff to telecommuting mode, if not the entire team.

9. Employ an intelligent workforce with less experience

An experienced employee is an asset, but it comes with people a price. Hire smart people with fewer years of experience to reduce the cost to the business. People who are up-to-date on technology are easy to train and learn to add value to the company.

10. Practice Guerilla Marketing

Guerilla marketing techniques help businesses to get noticed and save money. In a short time, we give a waiver, and a new customer adds to the directory.

11. Know your customer

Understand and know your customer’s online activity and market your products accordingly. If you know what your customers like and how they respond, make online marketing efforts in that direction.

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