For small business owners, it seems like there’s never quite enough money to go around. All of the bills, vendors, and other financial obligations seem to eat up any and all funds as soon as they come in, and there’s always need for more. If you’re looking for financing or just to fund a new venture on your own, that need for cash is immediate, and it usually takes a bit of time to save money or cut costs to be able to save up the amount of money you need. Fortunately, there are a few simple ways to cut costs and beef up your savings to make that next step for your business. Here are four time-saving tips for you to save money for your business.
1. Bring marketing in-house
Between companies like the Content Factory or freelance sites like Upwork, there are plenty of opportunities to outsource your content or social media marketing. While these sources can churn out quality content for your site and meet deadlines, they can also be expensive. For example, the Content Factory reports that having a third party start and run your company’s Twitter account can cost between $2,000-$4,000, while blog content can cost nearly $500 per post, depending on word count and the author’s experience.
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While writing can certainly bring tears of frustration and dread to anyone’s eyes, it’s an immensely valuable skill in any business and in any role. Consider, instead of outsourcing your marketing, bringing it in-house. You can take a little time to churn out a blog post or dive into Twitter to see how to build up your business.
If you’re really worried about the quality of writing you might produce, reach out to friends or family with more writing skill to take a second look, or reach out to budding journalists or marketers who are looking to add to their experience and portfolios… for free. Personally, in between paid freelance opportunities during college, I never turned down an unpaid opportunity to write content and build my portfolio. By cutting the cost of outsourced content or social media marketing, you can immediately save hundreds a month and put that towards your next business goal.
2. Buy material in bulk when possible
If your business buys material to produce goods, you likely have a pretty good idea of how much material you need for a month or so. If the particular material you use can be purchased in bulk and can hold for longer than normal consider buying it in larger quantities. While the initial purchase cost may be higher than usual, over time you’ll save cash.
3. Look to lower your interest rates
You likely already have at least one business credit card, if not multiple along with business loans. If you got those cards or loans early in your business, your interest rate likely reflects the amount of risk your lender attributes to such a young business. If you’ve stayed in business for a good amount of time, say more than a year or two, you can possibly qualify for lower interest rates.
Even though banks really want your business, they’re not about to call you with the great news that you might not have to pay them as much money; you’ll have to approach them and ask for it. Do your homework first, and research your lender’s process for working with interest rates. You can check with Nav to see what financing options are available for your business, and you may find one with a lower interest rate. Less interest paid is more money in your business account, and that’s a step closer to your goals.
4. Talk to your vendors about prices
If you’ve worked with a vendor for a good amount of time and been reliably on-time or even early with your payments, you could ask about a discount on materials or services. Remember, these guys aren’t going to offer this out of the blue, and asking tactfully can only help. This same principle applies to internet providers or other services your workspace or office may use; you may be surprised at the loyalty discounts they can offer you.
If the vendors aren’t willing to budge, be open to shopping around. It’s normal business to switch up vendors or service providers every few years.
While these tips may not bring instantaneous savings and cash, they can help save money relatively quickly and get your business even higher off the ground.
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