Ways To Save Money In Business When Running On A Budget

When in business, you always want to maximize whatever money you can save. These savings, after all, translate to profits. In business, too, there are good and  bad days. When the budget seems so low, you may be on the brink of having no business savings at all. When your business is on a tight budget, here are some ways for you to still have some savings:

1. Go for piggyback advertising

Piggyback advertising refers to the mode of marketing or advertising that allows you to save on costs by riding on customers’ purchases from your store. For every purchase a customer makes, insert a coupon or a small flyer with details or promotions about your business. This customer can pass forward the very same coupon or pamphlet and, in a way, attract more customers. You can also do the following:

• Insert an advertisement for your business in every invoice or bill you send clients.
• Whenever you send mail to someone, insert a flyer as well.

2. Buy used or second-hand equipment

Do not limit yourself to buying brand-new equipment when running a business on a budget. You can save so much money by opening yourself up to buying used or second-hand equipment. Many second-hand equipment in the market today are still in excellent condition; some are even close to brand-new. Take advantage of sales, discounts, and thrift stores whenever you have no choice but to buy equipment to replace a defective one or if you need it for your business. 

• A financial planner or accountant can also help you with advice and guidance regarding running a business on a budget; visit www.capstonefp.com.au.

3. Turn off electricity when there are no customers

Depending on the type of business that you have, there will always be peak and non-peak hours. During the non-peak hours, your budget will indeed thank you if you start switching off lights and other appliances that are not yet used. Make it a habit to unplug a few hours a day and put them back on again a few minutes before the peak hours. In the restaurant industry, for example, some small businesses, or those on a tight budget, even limit their operating hours only to peak times, like lunches and dinners. During the time in between, they close. Here are other ways:

• If your business is office-based, and clients come and go during the day, you can save electricity by switching off the lights when no one comes in.
• As an alternative, take advantage of natural light, too.

4. Go home-based for a couple of hours if you can

Another excellent way to save on business expenses is to run your business from home for a few hours. However, this, again, is dependent on the type of business that you have. Examples of the companies that can work this way successfully are the following:

• The practice of professions such as engineering, doctor, or lawyer, where you can save on rent and other utilities by working from home for a few hours a day
• Service-oriented businesses such as event planners, photographers, and musicians, where you can set up your home office or studio

Monthly rental payments and electricity comprise a massive chunk of your business’s monthly budget, so working from home for a few hours a day or alternating from an office-based to a home-based setup weekly can save you so many costs in the long run.

5. Go for bartering

Bartering, or trade, is also a business practice slowly gaining popularity. Bartering refers to your change of goods for services and vice versa. For example:

An advertising agency comes up to you, asking you to make a website for them. As you run a web design company, you can exchange the site for free advertising instead of asking them to pay you a fee.

You are a baker, and a customer who owns a baking supplies shop happens to approach you for a grand birthday cake. Instead of this client paying you cash, you can exchange the cake for an equivalent amount of necessary baking supplies.

In bartering, you do not have any cash inflow, but remember that you can cut down on any cash outflows. In this manner, you can save on costs by receiving goods without having to pay for them. This can cut down expenses on your budget, making you save up more instead.

Conclusion

Whether big or small, running a business is always an onerous task. In every industry, you will still have a budget. However, some days, a limited budget is stretched too thin. Remember that to stay afloat in the business industry, you will need to at least have an adequate amount of savings. The tips mentioned above will help you achieve that, even when you are running on a meager budget.