Increasing sales is the best way to build a profitable business. However, there’s no guarantee that you’ll succeed even if you follow all the rules in the book. The market is unstable, the competition is tight, and your consumers are unpredictable. But there’s one thing that you can control when running your small business: money. It is always possible to control your spending, cut costs, and reduce expenses until you have enough funds to sustain your start-up. Here are some strategies to keep your expenditures to a minimum:
1. Go for secondhand equipment.
Buying shiny new equipment is never a requirement for a thriving business in Las Vegas. If you’re on a budget, it makes sense to purchase quality second-hand equipment. When you buy used office furniture, you can find high-quality pieces that have a much lower price tag than brand new couches, desks, and chairs. You can have over 50% savings if you buy gently used office appliances, computers, copiers, paper shredders, and printers. Shop around for great deals by searching online, asking colleagues for referrals, advertising on social media, joining auctions, or visiting thrift stores.
2. Establish an energy-saving strategy.
You can cut down your bills by making your office more energy efficient. When lights, computers, and other equipment are left on standby overnight, it can be a massive energy drain for your business. Enforce a strict lights-off and power-off policy in the workplace. If you’re still using conventional bulbs, it's time to switch to CFL or LED lights. Leverage natural lighting by encouraging your employees to draw up the blinds in the daytime. You can also save from 10-15% of electricity costs by using a programmable thermostat.
3. Reduce paper.
Many companies still print every memo or document and pay extra not only for paper supplies but for waste pick up. Instead of consuming reams of paper every week, you can consider using email or instant messaging apps to share information quickly and inexpensively.
4. Switch to online advertising.
Save your marketing dollars by leveraging social media instead of traditional advertising. Social media ads are a much cheaper and more efficient way to promote your business. If you have the time, you can manage your online business portfolio and connect with your existing and prospective customers without spending a dime.
5. Grab early payment discounts.
Many suppliers offer a discount to buyers who pay earlier than the due date. For instance, 2/10 net 30 is a typical arrangement where they deduct 2% from the invoice total when their clients pay within ten days instead of the usual 30 days. This might seem a small one-time discount, but it can be a meaningful annual saving. If you have sufficient cash balances, it is always a wise option to grab those 2/10 discounts.
6. Negotiate over everything.
Everything is negotiable from products, payment schedules, and services. Do not settle for the initial offer and negotiate with your partners, suppliers, customers, and landlords. Develop your people skills, share your budget constraints, and exude a body language that inspires a “yes” during negotiation.
By following these suggestions, you can cut down on costs without having to lay off some of your staff or cut down on customer experience.