Small businesses can struggle with the ebbs and flows of their finances. In the early days of your business, you might find it difficult to judge exactly when those tough quieter periods will happen.
If your business hasn’t been booming as much as it should be lately, there could be several reasons causing this. Increased competition, economic changes and simply a lack of present demand can affect sales and profits.
Navigating these tougher moments requires careful financial planning, as well as looking at ways you can cut your business costs. Cost-saving initiatives will benefit your business even as things start picking up.
You can make your money go further with these dry-spell cost cutters.
Image: Pxhere
Make your office greener
A greener office can save your business money, especially if your energy bills are high each month. Taking steps to reduce your office energy use will help you to cut costs and adopt better practices to help the environment.
Some of the ways you can reduce your office energy use include:
- Make sure all lights are turned off in rooms no longer in use. Consider using sensors in the future.
- Replace your light bulbs with energy saving bulbs.
- Ensure all employees turn off their computers at the mains at night.
- Avoid using fans and heaters unless absolutely necessary – opening windows and advising extra layers can help cut costs in the short term.
Use cost-effective tech and tools
Technology is an area where you can increase savings for your business. Instead of buying brand new equipment outright, you could lease or buy used/refurbished tech instead. Searching around for software that offers the best value can also help your tech budget stretch further. A cost effective B2B sales tool could save you money and lead you to new customers, too. Do your research and ask for recommendations to make sure you’re getting the best tech for the best price.
Outsource
Outsourcing is common for many small businesses that can’t afford core business functions full-time. Areas such as marketing, graphic design, web design and accounting/payroll can be outsourced to help save your business money during the growth stage. Over time, you might want to bring these functions in-house. While you’re looking to save money, you could benefit from outsourcing in the meantime.
Launch a promotion
While a promotion might feel as though it’s costing you money, it could have some benefits to aid those quiet periods. Promotions targeted towards your existing clients could encourage them to purchase sooner, increasing your sales during that period. People love a special offer, and the right promotion could be a great move for your business.
Over time, you should be able to better predict when your quiet periods are approaching. Once you have this information, you’ll be able to manage your cash flow and ensure an even workflow throughout the year. Slashing your business costs in the meantime will save money and help you stay afloat. Don’t be discouraged during this dry spell – things will soon pick up and you’ll be longing for a break once again.
