Are you looking for a way to make more money for your small business? When you own a business, you’re always trying to come up with ways to increase profits. Whether it’s by offering more products and services, expanding, or reaching out to a new customer base, there are many ways to increase your company’s income.
Sometimes you have to get creative and other times, you might need to tweak something you’re already doing. Experienced business owners will tell you that sometimes you need to outsource, cut advertising for a lower-cost option and negotiate with your vendors. Here is a look at this advice and more for those looking to save money in their small business.
Negotiate with your Vendors
You have to use vendors for all kinds of reasons: paper supplies, business cards, office supplies and copy machines. They are running a business just like you are and they should understand just as well as you do that a business doesn’t make sense without making a profit.
Just because you are paying your vendors a certain amount that you’ve both agreed upon doesn’t mean it has to be the final word. Most vendors are willing to negotiate a lower price.
Sometimes the vendor may ask you to extend your contract with them, while others won’t have any stipulations and simply don’t want to lose a loyal customer. It doesn’t hurt to ask everyone from the phone company to the landlord on your lease.
Lower Cost Alternatives to Traditional Advertising
You can cut out traditional advertising and go with low-cost options instead. There are Internet marketing and advertising options that don’t require you to have an expensive TV commercial to stay in business. Cut down on paid advertising like Google Adwords and instead, try to get results with SEO methods. Sometimes a Youtube video, a company website and word of mouth is more effective and free.
While you need employees, you don’t necessarily have to have them all at your office. Consider outsourcing some of the work to free up salaries, office space and even insurance. Keep full-time staff minimalistic while you outsource some of the work to independent contractors. Unless you need someone full-time and physically at your office, most work can be outsourced; even your receptionist can be hired virtually.
Is there a friend, colleague or business acquaintance that you could trade services with? If you have a skill that you could offer someone for free in exchange for a service you need, it might be a great way to save money.
Perhaps you are skilled with sewing great costumes for parties, Halloween or even mascots and your business acquaintance has the ability to make signs for businesses. The two of you could trade services in order to get both of your names out there.
Events are a great way to draw in customers. They allow your current customers to touch base with you, while bringing a potential customer. Consider hosting a gala or seminar, but get sponsors to help fund it. Have a sponsor help with the bill in exchange for advertising at the event.
Lastly, keep in mind that you can save money with expensive hardware by storing your data in cloud-based services. You can also save in paper and utility costs by going green. Hire smart, inexperienced people that don’t require high salaries and keep extraneous expenses low like those free weekly lunches.