The most successful of businesses inevitably face a cash crunch or two throughout their life during which paying bills, giving worker wages, handling operational expenses, etc turned into a nightmare. Here’s the way to prevent such adverse events through cost-cutting strategies.
We are not talking about laying off workers or cutting corners out of an already tight budget. We are talking about practical ways like those below to save your business a significant amount of money each month.
Make friends with technology
Use technology! Many businesses feel that investing in these products is a waste of money but very few realise that time is money. Using services and products saves time and minimises cases of manual error, making work easy and thereby, giving more space to creativity.
Test before You Purchase
Experienced shoppers have one mantra
Purchase in bulk
Buying in bulk is a money-saving principle utilized by businesses, large and small. Be it the retail store owner across the street or designers that bulk buy cloths to produce profits, it’s always cheaper to buy in bulk. Buy essentials such as office supplies, like paper, printer cartridges, etc products like tissues, java, etc. in bulk. You may have the ability to save thousands this way.
Track every small expense
Keep a record of all miscellaneous expenses or purchase tools to monitor every sort of expense however small or insignificant they seem. Small expenses often accumulate and create bottlenecks when asserting taxes. The best way to track these expenses would be to save all the receipts and examine credit card payments in the end of the month. There are various programs and support products that can assist with this.
Review expenses annually
Purchased a SaaS tool ? Do not forget to stop the subscription once you don’t require it! If you forget, you’ll discover that your business is burdened by services you never use that just weigh down the balance sheet.
Find creative alternatives to traditional sellers
Some providers are required by each business irrespective of the size. If you’re interested in HR and Recruitment services do not just rely on traditional options but research and then pick the agency or services according to your requirements.
Apply credit card rewards points for gift card purchases
Use your credit card reward points to buy gift cards to minimise business expenses such as worker gifts, office supplies or travel. You can save a huge number of these points.
Renegotiate your payment provisions and timelines with customers
If yours is a B2B Business and your customers request payment provisions of 30-90 days, offer them a discount on their next purchase in exchange of timely payment. As an alternative, you could also offer a discount on current bills in exchange for early payment which could boost your business growth and maintain a healthy cash flow through bill discounting platforms.