Running your own business may prove to be a pricey endeavor even with the help of cost-effective technology and marketing tools. However, the main goal of every business owner is to acquire as much profit as possible and that means you need to be in constant control of your expenditures. As the business flourishes, the costs tend to increase and there will most certainly be some hidden expenses that will sneak up on you when you least expect it. In order to keep the income high and the expenses/costs at a minimum, here are some useful tips on how to keep the right balance and stay afloat.
Time is money
Business owners often invest their time in order to cut expenses here and there, but the question is – is this always worth the effort? For instance, if you decide to pick up your supplies yourself since the delivery service will charge you more than you expected, think twice whether this trip is really saving you money. Is the time of your return trip worth more or less than the postage? Did you remember to include the cost of gas as well as the wear and tear on your car? Maybe the delivery fee isn’t the right place to save up and you’ll be better off spending that time earning much more than that.
Undoubtedly, productivity leads to profit. The key to being efficient is setting clear goals, having a plan and sticking to it. Start with a productive morning routine that will set the tone for a successful day. There are some time management tricks you can utilize, such as limiting time for task performance or planning your next marketing move while you’re waiting for your next client. And by all means – delegate. Should you feel overwhelmed by your work at any point, outsource or delegate some of it to others. It’s definitely worth paying for a more efficient service than waiting too long to get round to it.
Communication is key
A well-oiled machine that is your business needs open, quality communication to prosper. Consider all possible connections that you might have (employees, suppliers, potential and existing clients, troubleshooting, and the like) and it might seem that your phone bill will rocket through the roof before you reach the end of the first month. However, there are ways to decrease the costs and still keep communication quality at a high level.
As far as collaboration within the company goes, relying on internal communication software will extensively facilitate operations. Not only does it offer instant communication among team members, but it also allows smooth work regardless of location. This kind of virtual workspace is less formal, connecting the organization both horizontally and vertically.
Of course, it does not exclude online facetime and allows for video conferencing including two or more participants. Opting for VoIP (Voice over Internet Protocol) is a much more affordable option compared to a traditional landline. Since it uses an existing internet connection rather than a separate system, it decreases support burdens, increases ROI, and lessens hardware and installation needs.
Lower office space costs
Always keep an eye on commercial real estate prices in your area since you might be able to take advantage of depressed prices and move your business to a much more affordable space. Furthermore, it can’t hurt to negotiate your current rental price with your landlord and come to an agreement that will suit you both.
If you are comfortable with working remotely and you have a team functioning well online, why spend money on office space at all? All you need is to equip a quiet, productive place within your home and conduct your business from there.
Bookkeeping, for instance, is a business suitable to be run from one’s home, but if you provide a service or product that requires occasional contact with customers, you can always go mobile. Plumbing and electrical services are good candidates for a home-based/mobile system in which you can run your operations from home, visiting your customers when necessary. This can save you money on insurance, taxes, and utilities.
Make your vehicle work for you
Vehicle costs can greatly affect that financial bottom line especially if you are running a service that requires a lot of fieldwork. The larger the vehicle the higher the fuel and servicing costs. One option is not to pay much for the vehicle itself. A new truck or van can leave a serious scar on your budget so why not browse through the online classifieds or cruise dealer lots and you might be surprised with good deals you’ll come across.
If you use your business vehicle a lot, mind your fuel consumption. Although diesel or hybrid vehicles may cost more initially, they will definitely pay off in the long run. You will be able to save a considerable amount of money you can further invest in growing your business.
On the other hand, if purchasing a second hand or a fuel-efficient vehicle isn’t the expense you’re ready for at the moment, why not try leasing one? This option has numerous advantages such as fixed monthly costs, the ability to return the vehicle, and no maintenance costs. What’s more, certain leasing companies offer a lease-purchase agreement so you can even buy it yourself at the end of the leasing period if you’ve calculated it would be a good move.
As exciting as it may be, starting and running your own business requires a lot of strength and effort. You might see it as a labor of love, but at the end of the day, it is important that you come out on top. Being frugal and efficient will definitely result in more profits and your business’s prosperity. Following these steps will enable you to have significantly more financial space and let’s not forget the peace of mind that comes with it. What is most important to remember is this – a penny saved is a penny earned.