Running a business can be hard work and very costly, especially if you’re just starting out in the field. Instead of throwing any extra change into a piggy bank like your mother taught you, there are easier ways of cutting costs, and Merchandiser has put together tips for just that. Between advice from CEO’s as well as guidance from other companies, you’ll be able to run your business efficiently and still have that extra change to buy yourself a sweet treat at the end of the week!
One of the most expensive parts about running a business is worrying about payroll. It’s a two-edged sword because on one hand the help is greatly appreciated and more hands on deck means more customers you are able to serve, but can you really afford all of those extra hands? According to OnDeck, a global online small business lending company, outsourcing services is a great way for businesses to save extra money.
“Unfortunately, many companies are paying far more for labor than their revenue levels can sustain,” according to OnDeck. “Fortunately, companies that succeed at staying in business have developed some effective strategies for keeping labor costs under budget. One of these strategies is outsourcing.” This means outsourcing manufacturing can help cut down on labor costs. You can enter into an arrangement with a manufacturing firm for parts, products or components, which you can then use to complete the product yourself and sell to customers.
Derek O’Carroll, CEO of Brightpearl, suggests a new delivery method for keeping your customers happy while also saving your business some money on transportation costs. “I would recommend that businesses put in place technology that allows them to automate workflows, like order management, inventory, fulfillment and integrated purchase ordering,” O’Carroll said. “Doing so will optimize the buying cycle and save businesses time and money which can be invested back into the business.” Both Uber and Lyft offer package delivery options for sellers who want to offer same-day delivery, and Amazon has its Prime Now offering in many markets, so there are cheaper alternatives for delivery options to keep your customers happy without breaking the company bank.
Another super cheap, basically free, way of saving some money for your business is by doing your own advertising. According to an article by Entrepreneur, you can trim down on advertising costs by promoting yourself through business cards, email signatures, and wherever potential buyers can see your website or market address. You can include a business card in customers’ shopping bags, include your website in the signature on subscription emails, and even put your business name on all company vehicles. Get creative and find different ways to promote your name or website in places where buyers can see it.