Many small businesses are started each year, they all take a huge investment and a lot of hard work to get off the ground. However, despite all of that effort, many companies will struggle to maintain their momentum. The good news is that around 70 percent of companies will survive their first two years in business. Trying to keep the company on its feet, especially for a small company can be hard, but if you can reduce your costs to a minimum, you will have a far better chance of success.
Make the Most of Your Advertising
One of the biggest outgoings your business will have outside of workers salary is advertising. However, you can still get a lot for your money if you try to piggyback your existing marketing strategy. For example, if you send out invoices by mail, then add a promotional flyer in with it. It will save on postage and has a greater chance of being opened and read. You can do the same with emails by adding a coupon or special deal flyer as an attachment.
Reducing Waste and Selling On
Sometimes it is the little things that can cost the most over time. Instead of buying disposable cups, for example, try getting reusable ones and adding a dishwasher so they can be cleaned. You can also try to reduce waste by seeing if any of the material you throw away can be reused elsewhere in the company. You might have waste materials that other companies need; you can recycle them by tying them together with wire from a company like balingwiredirect.com and selling it to them. Do you have products that don’t meet the quality standards? Instead of throwing them away, can they be sold at a reduced rate to recoup some costs?
Partnering with Other Companies
Although business is a competitive world, there is still room for a good working partnership. To reduce your advertising and production costs, why not think about linking up with another company. It won’t be a merger; it will simply be that you can share packaging facilities and advertising costs to help both of you reduce your expenditure. With over 28 million small businesses in the U.S, it will be easy to choose a company that offers complimentary services to your own, that way; you may be able to boost each other’s sales as well.
Cut Back on Business Trips
If you travel a lot for your company, it can soon add up when it comes to the cost of flights or hotel bookings. Try to encourage your clients to do more meetings through video conferencing. Alternatively, you could also try to see all your clients in one area on the same day, that way you will save money on traveling.
All of these ideas will help you to minimize your expenditure and maximize your profits. If you continue to find savings without the need to reduce staff, you will also be able to continue your current levels of production.