One of the most successful strategies for making any small business foster is to cut costs wherever possible. In small businesses, every penny saved is truly a penny earned. In case you have a small business and you want to maximize your revenues, you should look into this plethora of ideas listed below:
1.Advertising: This is one of the most important domain for any business. Investing smartly in advertising can save a lot. So instead of putting money into advertising centred ideas viz. banners, you can adopt to put ads in the already existing stuff like invoices and product covers. You can also partner up with some organisations and split up the promotion costs. Make good use of virtual advertising using mailing lists. Multi-level marketing and referral programs may also help you in boosting your profits with a near zero investment. Marketing your products and services using the testimonials of satisfied customers is another effective approach. You should also engage in (micro)blogging, as that might be the future of advertising.
2.Electricity Saving: If your business involves the use of electricity powered equipment, then the resourceful use of such equipment can sum up huge. Buy equipment with a higher energy star rating, so that your electricity bills are controlled. Replace faulty and poorly rated equipment to ensure future profits. Try to take advantage of Residential Renewable Energy Tax Credit. If yours is a home business set up, you’ll be provided 30% personal tax rebate for revamping your residence with sustainable energy sources. Thus you can assert a credit of 30% of the competent costs for cabling, labour and other expenditures.
3.Office Equipment and Space: If you are in the initial stages, it is always advised to get your office equipment on via a short term rental. It will save you a lot in terms of initial setup, as well as in terms of maintenance and repairs. However, if you are strictly determined to buy equipment, look into the prospects of buying cheap and used may get amazing deals. As far as the space is concerned, try to opt for industrial space over commercial space because leaving the beaten path can save you thousands over the course of a year. Office supplies can also run you a tab so search around and save money on every print from places like http://www.inktechnologies.com/. Several online companies have been able to save tons of money by offering great products for less, all you have to do is look!
4.Supplies: As far as supplies are concerned, the most important thing is to make purchases intelligently. Order in bulk to claim wholesale discounts, negotiate with vendors, and stay informed about other alternatives and the current offers applicable on those. Search online for any promotions or coupons. Moreover, the stuff which is useless for your business might be a stash of gold for some other, so maybe someone has a stash of gold for you also. So encourage in barter and find similar businesses by using services like barter.net. Also encourage your workers to reuse and recycle stuff whenever possible.
5.Technology: If your organisation relies on software, switch to alternative free software. For reducing communication cost, reduce the number of phone lines and try to ststandardize the use of VIOP in your whole business infrastructure. Switch to online payment services like PayPal, which charge per transaction, rather than using merchant services who charge you with monthly as well as statement fee. Look for cheap web hosting alternatives to commercialise your online presence. Opt for corporation packages providing a set of services together at a discounted price. If your business aims at selling goods, make sure that you create an online marketplace, where you can showcase and take orders for all your products.
6. Employees: Hire freelancers as they tend to work at lower wages, also saving you their part of the office space. Rather than keeping a lot of employees to sit idle at the workplace, hire temporary employees in order to cater to high demands whenever required. Introducing student internship programs can be a very beneficial step, as you will get the young, budding and enthusiastic people to work for you at very low or even no pay. Try to outsource your work if somebody else can do it for a lesser cost than you would do it yourself.
7. Grants and aids: Very few businesses are aware about the whole range of government policies and financial grants. These are established by the government to encourage people to take up business. These grants can cover over 50% of your machinery and equipment costs. Such grants are very specific in terms of location and industry and come bundled with terms that ensure the business holders fair business intentions. If you are lucky enough to get any such grant, then you can have a huge amount of saving. For starting up a business in U.S, organizations such as SBA have proved their worth in assisting establish a small business. It comes in practice after an organization meets maximum business size standards by providing free business planning support, introducing small business loan programs etc.
8.Business Credit Cards: Business credit cards are promotional cards from various banks which tend to offer advantages to businessmen. All the 4 major card issuers, i.e., MasterCard, VISA, American Express as well as Discover provide cards for business oriented users. These cards usually provide a greater percentage of cashback as well as lower interest rates as compared to the regular cards. Other cards, such as American Express Gold Business card, charges no interest but has to be paid off every month, giving you bonus points in return which can be spent on purchase of further goods.
9.Tax: Try to discover the tax saving and income planning schemes for your organization which can considerably cut down the taxes and thereby save you some valuable income. Try to get tax advantages where ever possible by exploiting all tax related policies to the fullest. Hiring online accounting services rather than traditional book keeping and TDS calculations could also save you a lot of treasure.
10. Start a saving culture: Start a companywide culture to start saving on small things. Encourage employees to turn off light whenever not required. Ask them to facilitate sharing equipment. You can also try to ask the employees to fix small problems by themselves. For instance if the electricity goes off, try not to hire an electrician from outside rather attempt to fix it on your own. Similarly such little tasks which can be tackled on an individual basis need not look forward outside for support and fix. Moreover, also push your employees to come up with innovative ideas to further cut costs.
Hope these save tid-bits will help your business prosper in the long run. Good Luck.