Negosentro | Seasoned entrepreneurs are some of the best sources of tips on handling money. In fact, the owner of your favorite convenience store or fruit stand that you pass by everyday to and from work will probably be one of your best adviser when it comes to hacks in saving money, finding quick sources of income, or even in getting cash loans for your business or startup. They are so called battle-scarred when it comes to handling finances. Here are some of the top 10 money hacks small business owners will reveal to you. Read on.
#1 Negotiate with Suppliers and Vendors
It is a recognized fact that “Cash is King” when it comes to running a business. So being able to negotiate terms of payments is both an art and a science you will need to master as an entrepreneur. Build a relationship with your vendors and truly, your cash flow will be lighter.
#2 Buy in Bulk When Necessary
If you are in the retail business, you have to be buying in wholesale. That is best practice. In fact, when you buy in bulk and the things you buy come with a heavy discount, then you will be in a better position to conserve cash. Tech entrepreneur David Mercer, from a Small Biz Trends article, revealed that he usually purchases office equipment and supplies only if there are deep discounts for these items. Wise move, indeed!
#3 Go for what’s Free
Alright, this is a no-brainer tip, right? Well, not really. Some people are not attracted to the word “Free” probably because it sometimes connotes “less quality” or “what’s the catch?” But hey, there are tons of free stuff that small business owners can use. For one, there is a lot of free software out there that successful entrepreneurs use already. From accounting software to ERP software, they are out there. You just need to scour the Internet and get recommendations from friends and you will surely get a lot that you can use. Of course, some free stuff, like software, have upgrades that come with a cost. But if you can already afford it, why not? You tested them for free, right?
If you are in the media or PR business, you will surely appreciate the term “barter.” This money hack is simply an exchange of service or product for another. No cash changes hands. A website can be built in exchange for accounting services for a certain period of time. An event can get a announcements or advertising from a local newspaper in exchange for sponsorship billing rights (usually as a media sponsor). There are many ways you can do this as a small business. Just be creative and prudent. Never give away stuff unless you are sure of the values being bartered.
#5 Manage your Credit Standing
If cash is hard – as it is sometimes – you will need to consider getting a loan or credit. The fastest way you will always look at is your personal credit card. Or if you have considered a bigger loan amount, you would consider going to a lending institution or a bank. But wait. Have you considered your credit standing? Michael Fidelman of MoneyTips.com said, in an article from Business Insider, that you should look into your credit report often. This is sound financial advice indeed as many individuals and small business owners-alike forget the importance of a credit report.
#6 Use guerilla marketing
Marketing is always considered as expense by businesspeople. However, without implementing any marketing, your business is at a standstill. First, there is the power of content marketing wherein blogging and social media marketing are considered as free (read as: guerilla!) marketing. Then there is coop marketing wherein businesses look into the power of marketing as a group. You can also be an event speaker and in the process advertise your business. There are a lot of creative ways to do your marketing and not simply stop doing so. All you need to do is to be always on the lookout for cost-effective marketing solutions that fit your business.
Remember, money may be hard sometimes, but when you are creative and persistent, things get easier. Next time you are in a bind, ask professionals and fellow small business owners for advice. Sometimes, the solution to your problem is just next door.