Running a business means having to face different challenges day in and day out. There are a lot of opportunities for growth and improvement, which may often come in the face of adversity. Therefore, it is crucial for entrepreneurs to be very good at money management. Business owners must be knowledgeable of the business’s cash flow, assets, and liabilities. To be able to succeed, they must have enough money on hand, as well as a reliable emergency preparedness plan for business.
This means business owners must also be experts in saving money — not just in their personal lives, but also in business. Here are a few tips on how you can make the most out of every dollar your business makes.
Promote Work from Home Set-Up
Most companies that have had huge success even through the pandemic have supported telecommuting. While this is not possible for all types of business, those who can manage it have also made significant savings in the process. Not only is it safer and more convenient for employees, but it can also cut down utilities (electricity, internet), rental, and maintenance costs. Start-ups and small businesses will find this option a lot more favorable compared to renting and maintaining a physical office.
If full-time telecommuting is not possible, you can still have employees work at the office at least two to three times a week. This will still provide your business with significant savings and allow you to allocate funds to more important Just make sure that employees have the support they need to work from home.
Provide Excellent After Sales Service
Advertising is never cheap, which is why taking good care of your customers is always a great way to get the word around. Perhaps one of the worst mistakes a business can make is spending a lot of money in advertising and marketing but failing to provide excellent after-sales support. It may sound cliché, but recommendations and word of mouth never get old—like they say, “make new friends, but keep the old. One is silver, the other gold.”
According to studies, approximately 60% to 80% of happy customers would not come back to the business they were happy with. Why? It is due to the lack of good after-sales support and poor customer relations. Many businesses still feel that making “the sale” is the end of the business-customer relationship, which only gets rekindled when there is a new transaction. This is a cycle that needs to end, for business’ sake. Happy customers who have received great after-sales support are more likely to go come back, spend more money on your products or services, and become loyal customers.
Manage Your Expenses
One of the most meticulous tasks in running a business is checking and managing the cash flow. It is essential for business owners to be on top of their business’ finances and make sure that they know what comes in and what goes out—or else it may be too late.
Not only will this let you know your company’s financial status, but it will also let you know where you can cut down on costs. You may not be aware of it, but you may be paying too much on electricity due to air conditioning, and getting an inverter type AC may cut down your electricity bills by as much as 50%, or you may be paying too much on courier service and a dedicated company courier may make you some significant savings.
Take Advantage of Free or Low-Cost Marketing
Social media and blogs have made it easier for many businesses to get their brands noticed. Not only is it very accessible, but it can also come free or at a low cost. Start-up entrepreneurs can easily create their business’ social media pages and promote their products from there, many can even do it on their own. However, it is important to know your audience in order to create an effective marketing campaign. There are a lot of tutorials online that can help you get started in case you do not have any background in creating one. You can also hire interns to help with design and copywriting.
Another way to market your business on a budget is to work with bloggers and influencers with a good number of followers and engagement. Just make sure to check their websites and social media pages to see if you are a good match.
Being resourceful can really come in handy when it comes to saving money for your business. This newly found funding can then be used to start new projects and reach business goals.