It’s a fine line with which many small businesses struggle. How do you keep a tight rein on overheads to ensure that they don’t spiral out of control while also ensuring that you invest enough in your business to maximise productivity and facilitate long term sustainable growth? No entrepreneur wants to compromise their delicate profit margins by recklessly spending, yet the savvy small business person knows that under investing in their business can be every bit as crippling as unchecked spending. After all, their customers have come to expect a certain standard of product and service from their brand and this cannot be accomplished when business owners are penny pinchers… or can it? There are, in fact, numerous ways in which SMEs can save money on their everyday running costs without compromising on quality. Even shoestring budgets can grow businesses. Here are just a few…
Turn to the cloud for your software solutions
Your employees and customers alike rely on a robust technological infrastructure. It allows you to meet the needs of your clients and customers while ensuring that your employees are as productive as possible and can do their jobs to the best of their ability. But most businesses have no need to fork out for expensive servers and costly software to be market leaders. Even ubiquitous software like Office 365 for Business can be rendered more affordable when going through a certified cloud solution provider. Likewise, cloud based storage solutions are a fiscally responsible choice as they are secure and can be scaled to the size of your business so that you never spend a wasted dollar on storage costs.
Buy used office equipment
Office refurbishment costs can be a daunting prospect for nascent businesses, especially those with limited startup capital. But just because the little things like desks, chairs, thin client computers and photocopiers are essential doesn’t mean that you should have to pay through the nose for them. Buy used office furniture and equipment from auctions, dedicated providers or simply scouring your local newspaper’s classified ads.
Embrace your space
Prestige office space is essential for ensuring that your business is taken seriously, but it’s perfectly possible to have a prestigious city center address without the exorbitant rental rates that go with it. Thanks to virtual offices and assistants you can enjoy many of the benefits of a prime office space at a fraction of the overhead cost.
If you’re able to dedicate part of your home to the running of your business this could be doubly advantageous. Not only will you save a small fortune on rental costs but your rent or mortgage on your home will become tax deductible expenses.
Allow vendors to bid for your business
As a small business person, you know that your customers can afford to be fickle when there’s so much competition out there. But don’t forget that as a small business, you have that same luxury when it comes to choosing your vendors. These will likely be small businesses just like yours and will likely be prepared to undercut their competitors on price if it means securing a long and profitable relationship with your enterprise.
Nobody expects you to settle for second best, but you may be surprised by how little you have to pay to get it.