The task of upscaling your business is a particularly welcome addition to your company, after all, it’s a sign that your business is doing extremely well. But, when it comes to getting to that point, it’s all about ensuring that your financial situation is in a good state. And, while you may have taken a fleeting glance at your accounts and thought that it’s absolutely fine, are you in a good enough position to progress your business in a financial sense without killing the company? In other words, are you able to save enough money to reinvest back into the business, even though you haven’t got two pennies to rub together?
Take Advantage Of Your Position
As a small business owner, you are entitled to certain perks. These perks can serve you well, especially when you’ve got limited finances, and you are trying your utmost to pay for specific business expenses, or even, pay clients and employees. Credit card suppliers like Chase provides numerous rewards for business owners, and in fact, one of Chase’s best business cards can get you 80,000 bonus points, which is the equivalent of $1,000 towards travelling, a considerable amount when you are struggling financially. Those thousand dollars can be used to attract one of the clients you’ve had your eye on for some time, but couldn’t set up a meeting due to logistical issues. In addition to this, there are specific tax breaks you are entitled to as a business owner, but because so many business owners operate under their own steam, and therefore, a limited knowledge with regards to what is out there, many entrepreneurs don’t claim what they deserve. It’s this that should form part of your overall skill as an entrepreneur, the ability to locate and acquire the breaks you are entitled to. Your position as entrepreneur shouldn’t set you back financially, and while you might find yourself putting in money to keep your business afloat from time to time, this isn’t the most productive solution, especially when there are so many other resources out there that can do this for you, from angel investors, to the standard banking loan routes.
Technological Cutbacks That Can Move You Forward
A lot of people think that in order to progress the business, they need to invest in the most cutting-edge of technologies, but in fact, there are certain approaches you can undertake that will ensure you are keeping up to date with changes in the technological landscape, but you’re not wasting your money on specific systems that you think are essential, when in fact, they are a passing thing. For example, you might find it to be a cheaper option to build your own server, but while the costs are low, the amount of time and effort that needs to be put into building the server, as well as ensuring that it is technologically sound, it would be a lot easier to invest in an IT support company that can provide everything for you but also, can keep up with the maintenance side of things. This is one of the most popular technological approaches to outsourcing, and by taking advantage of this, it leaves you with a lot more peace of mind. While this is a cliché, when you are struggling financially, a lot of aspects can benefit from being outsourced, especially those that you know nothing about. You may go in with the best of intentions to hire computer experts, and have people build you a server so you can save money, but it’s this labor of love that takes a lot more time than actually hiring a service to do it for you. And as many businesses struggle to cut back on certain processes, it can feel like the business is limping to a stop. Something like remote working can be treated as a necessary evil, but if you go from a full office, to enforcing remote working, it reeks of cutting costs. Instead, by using something like remote working as part of your fundamental ethos, or introducing telecommuting as a fundamental part of the business practices, it won’t feel like you are cutting back, and if you are at the point where your business is doing so well, that you can upgrade from remote working to a full office, it feels better from the perspective of the employee. Remote working has a lot of things going for it, especially from the perspective of the employee, and so, if you can sell it that way, you may not have to set up an office ever.
Get Rid Of The Expenses
While the cliché “you’ve got to spend money to make money” is almost as old as time itself, you might consider this to be one of the necessary evils in order to get ahead. However, expenses are one of those difficult issues that, in actual fact, people can take advantage of. Company expenses, such as on a company credit card, or you classing every little thing as a business expense, can be something that runs away from you somewhat. You can easily get trigger happy when it comes to paying for lunches on the company payroll, and before you know it, you have racked up a mountain of debt that could have easily been avoided. You might find it beneficial to your employees’ morale that you buy lunch for them, which is indeed, a veritable luxury. But is this something that is really essential? Cut back on these unnecessary expenditures and you may find you are making a lot more profit. On the other hand, what money you would consider spending on certain expenditures, invest it back into the business instead. While there are ways to bootstrap your business, if you take the initiative and not consider your business as a financial free ride, but operate with the mindset that the business comes first, and your needs second, you will be able to cut corners effectively, without it compromising the business. Cutting corners is a very dangerous thing, because, as a term, it can mean papering over the cracks, or finding the easy way out. Constricting your finances can force you to think more creatively, either in terms of what you deem essential to the business but also what you can bring in for lunch. After all, it’s cheaper to make your own lunch and bring it in, so why don’t you do that, and use the business credit card for something more worthwhile?
There are so many job posts out there that require a certain level of experience, which certainly will attract a high caliber of applicants, but if you are in a position where you are trying to cut back financially, hiring these high quality applicants comes with a certain expectation of how much they should be paid. The benefit you can have in hiring applicants who have the knowledge, but not necessarily the experience, means that you can pay them, within reason, pretty much what you want. Of course, now people are more switched on as to how much a certain job should pay, and while it’s not worth you taking advantage of something like an apprenticeship scheme or an internship, if you are confident enough that the applicants know how to do the job, but don’t necessarily have the experience, it’s worth taking a gamble. After all, these applicants are desperate to make an impact, so, therefore, they will work hard, if not harder, than the more experienced applicants, which will serve you very well. Paying an entry-level salary, rather than having to raise the increments based on an experienced employees’ expected salary, is going to save you thousands of dollars every year.
Look For Low-Cost Advertising
Advertising is viewed as one of those things that you have to put a lot of money in to get the sufficient benefits. But, there are so many low-cost alternatives that can help out in this respect. The usual approaches include implementing specific SEO techniques, and something like social media is a low-cost option pretty much every business tries now. If you are looking to boost traffic to your website, it might be cheaper to invest in filming content that can go on your social media channel rather than expensive billboards. Inbound marketing approaches are always a cheaper option, but this doesn’t mean you should skimp on the quality. After a while, you will find your feet and understand what type of content suits your overall business ethos, but at the very beginning, investing in your image is one of those necessary procedures. As this will link in effectively with your advertising.
Making a gradual profit is very difficult, but it’s something that can be done by trimming some of the little expenses, rather than making massive cuts that impact workers’ lives. Making a gradual financial increase means that instead of focusing on profit, you can pay attention to the business growing in an organic way. From the right people to the technology, and even how you spend money, it’s possible to ensure a gradual increase in your overheads without it killing the company or your bottom line.