Is cash flow low in your business right now? All small businesses go through periods of low cash flow and earnings; so planning and budgeting for these times is an important factor in business success and sustainability.
Here are a few tips that will save you money and ultimately increase your bottom line:
Use your existing business relationships to save money by exchanging services. Do you offer a service that your accountant could use? Ask if you can offer your services in exchange for accounting services. Be creative and think outside the box! You might get a simple no, but you may also be pleasantly surprised by a positive response!
Go Old School
Marketing and advertising can be substantial expenses for a small business. Having a goal and budget for these expenses will save you big cash flow surprises down the road. Try going old school by sending handwritten thank you notes as a follow up to a sale or pick up the phone to connect with your customers.
On the subject of marketing, make sure you know what your customers want and like, and also where they hang out online. Having this information will save you money because you won’t be spreading your marketing dollars too thin. When you know where your customers are you can target your marketing efforts.
Buy your supplies in bulk & ask for discounts
Finding a good source for buying your office and business supplies in bulk will save you money. Pinpoint what supplies you buy on a regular basis and research the best prices. Don’t be afraid to ask for a bulk buying discount if it isn’t offered up front.
Also, ask your suppliers for cash or early payment discounts. Become comfortable with asking for better payment terms. If you are a regular customer, your supplier will most likely negotiate a better package for you.
Keep an eye on ALL of your expenses
It is easy to lose sight of your business expenses when sales are rolling in, but a smart business practice is to review your expenses on a regular basis. Taking time to sit down once a month and review where you are spending your money will allow you to cut back on any expenses that are not really necessary. Too many business lunches or lattes add up very quickly!
Set clear credit terms with your customers
Collect what is owed to you in a timely manner, and have a clear payment policy in place. Outstanding customer account balances translate into interest charges and negative cash flow.
Time is money
Spending your time efficiently and effectively will save you money. Find ways to streamline your systems, solve problems quickly and outsource where needed if you are in a growth phase in your business.
What are some of the ways you save money in your business? Share your tips with us by leaving a comment below. Need help with developing a plan? Contact me today to book your complimentary planning session.
“Financial fitness is not pipe dream or a state of mind it's a reality if you are willing to pursue it and embrace it.”~ Will Robinson