Savvy Savings – 6 Ways for Small Businesses to Conserve Their Capital
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In today’s hyper-competitive economy, small businesses need to fight harder than ever to survive and grow. To gain a competitive advantage and achieve long-term business triumph, you need to be on top of your commercial game. If you’re looking to get ahead, strive for success, and be the best business owner you can be, consider these six capital-conserving tips below:
Serviced Offices
If you’re looking to sidestep conventional office costs that typically include rent, utilities, and maintenance, then serviced offices could be an option worth your consideration. Serviced offices enable you to wave goodbye to expensive overheads and benefit from one inclusive monthly fee. The best part is, a serviced office is just that: serviced. You can get on with your job without having to lift a finger or a paintbrush.
Hire Virtual Staff
A traditional workforce is not going to be the norm in the years to come. In fact, 80 percent of companies are looking for a more flexible workforce that may comprise higher numbers of contractors than permanent staff. Virtual team members are often far more affordable than in-house workers, which keeps costs low while still helping you to get ahead. What’s more, virtual employees can cover all aspects of your business – from sales and accounts through to advertising and marketing.
Use Cloud-Based Applications
As more businesses make the switch to cloud-based systems, it’s becoming apparent that there are endless benefits associated with their use – the biggest being capital conservation. Rather than relying on an expensive IT team to develop, update, and control your day-to-day servers and systems, the cloud allows you to use all manner of easily-updateable and secure applications. For small retail businesses, this can include seamless e-commerce systems, which enable you to provide your customers with products and services faster and with less effort. After all, if you’re saving time, you’re saving money.
Hire Interns
If you’re a new business with a lot to offer, you may find that hiring an intern could work in your favor. You can benefit from inexpensive and casual labor while the intern can grow their skill set and gain valuable experience. While interns do require more management than a virtual staff member or in-house employee, you get the benefit of being able to pay a lower wage while molding them into someone who can add a significant amount of value to your business. For both intern and business owner, it can be a win-win situation.
Negotiate with Vendors
When starting a new business, you’ll most likely be opening new accounts with vendors to supply you with the products you require. If you know you’re planning on a long-term relationship, it’s in your best interests to negotiate for a better rate. The standard rate most suppliers set you is not the best you can get, so don’t be afraid to haggle until you find a price that works for you both.
The Old-Fashioned Barter System
There’s no denying that money talks, but so too does a skill set. It’s not uncommon to come across another business you require services from who could also benefit from yours. Where possible, trade skills for skills rather than buying services outright. This enables you to keep your costs down while simultaneously getting what you need.
There are many ways in which businesses can conserve capital while still achieving all-important growth. With a little bit of creative thinking and hard work, your business can join the ranks of small firms that have worked their way to the top of the food chain.
