One of the main goals for many small businesses, especially when they start out, is figuring out how to spend less and profit more. Saving money seems straightforward enough, but many small business owners are actually making consistent mistakes in areas that could be easily improved. To maximise long-term returns, try the following tips to spend less on your small business:
Rethink the necessity of your office
It’s normal for any business to have a space to run their affairs from. However, if you’re interested in cutting costs, it might be worth considering whether you really need an office or if you’d be just as capable at running things from home or a coworking space. If you don’t see customers face-to-face, you do just as well without the high overhead required by an office space – and you can always move back into a traditional office as your business grows.
Invest in high-quality office furniture
Whether you’re working from an office or from home, good furniture should be a priority. If you’re sitting down for long periods of time, investing in quality furniture is essential to your future health, and will limit any backache and neckache problems. Buying high-quality furniture will require an initial investment but will be well worth it in the long-run. You won’t have to replace your furniture once a year and will feel much more comfortable while you work. If you worry about the amount of time you spend at your computer or desk, consider investing in furniture that’s been specifically designed for the comfort of office workers.
Don’t shy away from allowing paid advertisements on your website
While you certainly won’t be doing yourself any favours if your customers have to close annoying pop-up advertisements every time they visit your website, there’s nothing wrong with sleek, minimal ads that don’t disrupt viewing. Ideally, you’ll be able to find advertisers who can give you ads for non-competing companies within the same industry. This way, your clients are more likely to view the ads as helpful rather than a hindrance. You can also look for other businesses yourself and ask about showing their ads on your site – or even suggest an ad swap so you can reach customers through their website.
Implement a customer referral program
One of the best ways to ensure customer loyalty is to give customers an incentive for bringing their friends and family to your business. Operating a referral programme doesn’t need to break the bank – even a small incentive is likely to encourage customers to suggest your business over others, and it’ll give your current customers a positive view of your business, too. You might also like to implement a ‘buy 10, get one free’ stamp-card style program, depending on your business model. It’ll keep customers coming back, whether they ever eventually manage to obtain a free product or service.
Buy your own truck
A vehicle can be a risky investment, but if you’re in the business of regularly transporting goods, choosing to buy your own truck is a wise decision. Avoiding high rental costs will save your business money in the long run, and depending on your country, you might even qualify for a tax write-off if you purchase a heavy vehicle for your business. Obviously, this advice is only relevant to specific types of businesses, but if you will be regularly using a vehicle, buying one may serve you well in the long-run. Saving money in your business doesn’t need to be difficult. Choosing to be patient and planning long-term will help you to make smart business decisions.
Written by: Cloe Matheson