Every penny counts with your small business. Money can be a huge struggle, particularly for a business that’s attempting to grow or offer innovation. You need the capital to achieve your dreams, and if you don’t want to go running to an investor or wind up with more debt, you’ll need to keep a close eye on your finances. Savvy financial management can help you achieve your goals much sooner.
Go Paperless
Going paperless is not only environmentally friendly – it’s cheaper. Big printing equipment is expensive to buy and maintain. Ink cartridges cost a fortune. The cost of storing and maintaining paper records, as well as the expense of the paper you print them on, can also add up. Keeping things digital cuts out a significant portion of your expenses. Your green policies might even help you draw in environmentally conscious customers who want to spend their money with businesses that share their values.
Make the Most of Your Space
It’s a smart idea to invest into an office space that’s slightly larger than you need, in order to accommodate for growth without paying the hefty fee of terminating a lease early. Until you’ve grown enough to fill that extra space, why not rent it out on a site like Spacer? People in your community and other local businesses might need some extra storage space, and making some cash off of that space can offset your rent and utilities.
Prioritize Spending
If you prioritize your spending, you won’t need to worry about going over budget. Make a list of what expenses come first, and what can wait until you have a little bit of padding in your revenue. Investing in new technology is important every few years, but not if it will hinder your ability to cover costs in other areas of your business. Making a list of the things that can wait will help you manage the money you need to spend to keep your business running.
Economize On Supplies
Make sure none of your expenses are redundant. If you require outside services to keep your business running, see if you can bundle them together through a sole provider that will handle multiple services. You can often negotiate the proposed rates to get a better deal – B2B companies understand the level of competition, and they’re often willing to work with small businesses to win them over. For products that you need to buy, investigate things like bulk discounts or look into cheaper suppliers. There’s almost always someone who can beat the price you’re currently paying.
Get Your Invoices Paid
Unpaid invoices are a nightmare for small businesses. Late invoices are equally as inconvenient, especially when you’re counting on those invoices to help you keep the lights on. Be aggressive in pursuing payments on time. Requiring your customers or clients to acknowledge that they’ve received the invoice makes them more likely to pay when the due date rolls around. If you don’t already charge a fee for late payments, contemplate doing so. Make sure your invoices are thorough and detailed to avoid accidentally undercharging customers for upsells on your products or services.
If it’s your goal to see your small business become a big business, financial wisdom is a crucial part of that process. Trimming the fat and streamlining the money coming in and going out will help you reach your goals.
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