You may have always dreamt of starting your own business. Perhaps you are now several months, or even a few years into running your own firm, but are you beginning to make any profits after your initial investment? Running any business, and ensuring that it remains successful after launch can be incredibly successful, no matter the industry that you are operating in. From construction to catering or even if your business venture is based solely online, there’s no harm in keeping these tips to hand if you are looking to learn how to start saving on your overhead expenditure.
Improve your supplier relationship
No matter what business you are in, chances are you rely on your suppliers to provide you with paper, office supplies or even construction tools. Your suppliers are essential for the future of your business – as without maintaining a good, efficient working relationship with these companies then your own firm may suffer. If you are spending a small fortune buying small items or tools as and when you need them, then you may want to change your approach and begin buying in bulk. Chances are if you buy in bulk on a regular basis then you may even be able to begin asking for a discount, or even better, buy the products at basic cost rate – without tax added on top. Not to mention some suppliers may even reduce their costs if you pay cash rather than credit card, or even manage to get your payments in early. So if you haven’t previously considered the power that a positive supplier relationship can have over your business, then it’s time to think again. Keep your suppliers on side if you want to reap the rewards, and make sure that you can keep your large costs down.
It’s not advisable to cut ties with a supplier that you have been working with for the past decade, in particular, if you now are being offered low-cost rates, but if you are in need of a new cell phone or internet provider, then it pays to shop around. Even if you are looking to replace your office coffee supplier, make sure that you contact a few companies to see if you can benefit from samples or a trial subscription before you sign into a lengthy contract. Don’t overlook online shopping either, in particular, if you are in need of a specific item for your business. Construction companies will benefit from table saws on ToolNerds.com. While if you are in need of office furniture or even replacement laptops or computers, then don’t dismiss sites such as Amazon or eBay where you can snap up some seriously attractive deals. It is definitely worth taking the time to shop around if you are after a particular item, but feel that you are currently paying too much.
Consider advertising costs
Sure, you need advertising and marketing to promote and raise awareness of the products or services that your business offers, but spending a fortune on campaigns or merchandising that becomes dated or useless after just one quarter, is a worthless and expensive investment. If you really want to get ahead, then it’s time to review your overall advertising costs and begin to embrace social media and your company website to help you cut costs. First and foremost, don’t shy away from using social media as an effective tool to help raise awareness. It only takes a few minutes to set up a Twitter, Instagram and Facebook account that you can soon be managing and run, by sharing updates and relevant content on a daily basis. The beauty of social media is that it enables you to broadcast information such as posts, or even a live stream, that will instantly raise the profile of your business. So, if you are having a sale or getting rid of excess stock, then social media is the ideal way to make the local community know about your event, and see footfall increase.
You could also consider posting articles and blog posts to your company website, especially if you want to draw attention to a new launch or product line. If you previously spent a small fortune on printed advertising or commercials, then using digital resources will see your overheads dip dramatically. Finally, social media can be completely automated. It means that you don’t even need to be in your office to keep posting and updating your social media channels. Tools such as HootSuite mean that you can schedule the exact hour and content that you want to share, several weeks in advance. Freeing you up more time to respond to your customers and pursue new business leads. Cutting your advertising costs and going digital will not only see your overhead expenditure decline, but it will also see your business’ profile soar.
Schedule a quarterly review
Ensuring that your business costs remain on track and within your budget isn’t just a one-off fix. If you truly want to save money across your business, then you need to make sure that you schedule in a regular review, for example, each quarter, to check that you aren’t going back to your old habits. Make sure that your entire workforce understands which areas of your business are the most expensive to run, and explain any changes that you are making. It’s essential that your entire office procurement and finance department understands your new cost-cutting strategy so that they can help you to roll it out across the firm – and stick to it.
Running a business can be expensive. In fact, you may even suffer a loss before you see any profits. However, make sure that you don’t let your day-to-day running costs get out of hand. Begin by improving your supplier relationship to cut costs of essential goods. Next, shop around if you need to buy or replace any specific items. Digitalize your advertising efforts and make sure that you schedule a review to ensure that your costs stay on track.