If you are setting up a new business in the current economic climate, you will need all the help that you can get. When your business is small and growing, every penny counts, yet increasing your revenue as a means of increasing your profits can be a challenge. However, there is another way in which you can increase your profits – reducing your outgoings.
Cutting down on your business costs is often much easier than increasing your revenue. Here are five tips for penny pinching business who dream of saving pounds (or dollars, if you like):
1. Outsourcing Staff
All businesses require expert help at some time during their lifetime. Whether you require marketing copy or web design, you can use outsourcing to enlist the help of experts in the absence of having to hire them as full-time employees.
2. Using Virtual Offices
If you cannot afford a fully equipped office in a high-end location, you may wish to consider using a virtual office. A virtual office will enable your business to attract top clients and will provide you with a place in which to pick up your mail and hold meetings with clients – without incurring the price tag usually associated with possessing an office in a top location. A virtual office can also help you to save on the cost of purchasing office equipment – you can simply hire the equipment that you require, when you require it. Some virtual offices even provide you with remote receptionist services, avoiding the need for you to answer business-related telephone enquiries and emails.
3. Shipping in Bulk
If you regularly ship products to your customers, it may be wise to schedule your deliveries so that you are able to benefit from bulk transactions. You may also wish to look into the special rates offered by different delivery services for bulk mailings. Where possible, you should avoid using overnight or next day shipping services as these are expensive.
4. Purchasing Used or Reconditioned Equipment
If you have set up your own office, remember that you do not need to purchase the latest equipment to get your business off the ground. You can function just as efficiently, and make considerable savings, by buying used or reconditioned office equipment. Before purchasing equipment for your office, determine your equipment needs. Once you have done this, scour your local newspapers and the Internet for relevant bargains.
5. Negotiating Prices
Always attempt to get the best possible prices for the services and products that your business needs. Whether you require the help of a freelance copywriter to produce catchy new slogans for your website or need to buy new ergonomic desks and chairs for your office, there are savings to be made. In return for any discount that you happen to acquire, propose to provide your payment in a timely manner. In addition to helping you to generate savings, this arrangement will enable you to create a strong credit record for your business, which will enable you to secure more favourable deals in the future.