If there’s one thing that keeps business owners awake at night, it’s money! Every CEO closes his eyes and sees spreadsheets. But, the trouble comes when those spreadsheets are covered in red numbers. The figures are dropping off a cliff, and if it doesn’t turn around soon, you’re going to hit the point of no return. Every business goes through this trouble once in a while. It’s important to remember that it’s just a dip on your long journey! There are quick ways to turn this around. Your business will be bigger and better in no time. Your first job is cutting the operating costs of your business. It’s time to free up some cash.
Premises and energy bills
First of all, let’s take a look at your overheads. How much are you paying on office rent? How much is your studio or factory costing you each month? Usually, this is one of the biggest costs facing your small business. The first question to ask yourself is this. Do you really need that much space? Could you downsize? Even for a year, just to cut costs. Next, look at your energy use. I’m certain you could find ways to reduce those bills through energy saving techniques. Cut out paper, turn off appliances, and let employees telecommute.
Tighten your marketing costs
I’ve seen companies that still pump thousands into traditional marketing tactics. They’re taking out TV and radio adverts. They’re still hunting for placements in magazines. Stop it! It’s tearing your bottom line to shreds, and there’s a better way. Cut your marketing budget in half and focus on highly-targeted online campaigns. Use Facebook, Google, and YouTube adverts to connect with the right people. Pound for pound, it’s far more effective than traditional advertising.
Human resources is typically the single biggest outgoing. The monthly payroll is a relentless financial obligation, and it’s not easy to meet the demand. So, start thinking about a different human resources structure. Try hiring interns instead of full employees. You can pay a lower wage while unlocking the passion of youth. Their drive, ambition, and outside perspective will become invaluable to your and your company. Use it to your advantage!
Reduce your supply costs
Supply costs is another area you can make big savings. Those regular orders and stock deliveries are eating up your budget, and it’s time to make a change. The suppliers at CCTY Bearing told us that their clients often pool together to buy in bulk. Perhaps you could try that with another local business. Or simply ask for a discount. Negotiate with your suppliers and find a price that works for you and your current budget.
Pay your bills
When the money is draining away, the last thing we want to see is bills stacking up. It’s easy to ignore them and wait until more money comes in. But, this is a big mistake! Face up to them, and pay them immediately. Otherwise, things are only going to get worse. Additional charges and interest will soon build up, and you’ll anger your suppliers.
Follow this advice, and you should give yourself that much-needed breathing room!