Money management can make or mar the future of any business no matter how profitable or not it may seem. Spending more money than what comes into a business can be the difference between a successful business and a failed one that fell out not because the venture wasn’t rightly positioned, but because the founders were grossly inexperienced or had poor money management skills.
So how then do you save more money for your business while making more money? What are many businesses doing wrong that you can correct with your own startup? And how can you ensure your business doesn’t close shop because of poor financial decisions?
If you’re looking for ways to save more money, here are 8 things that will help you save and make more money for your business:
This is the single most important thing on this list. If you want to ensure you control how money leaves your company, then you’d have to create a daily, weekly, monthly, and yearly budget, and stick to it no matter what.
By allocating different amounts to different things, you control where the money goes and can have a degree of assurance that your expenses are well accounted for.
2). Invest In Technology:
Going fully digital can save your company a lot of money on paper works, phone calls, trips, and even employees.
By investing in technology, it would mean you’d communicate more with your clients via Skype than airtime credit, record your activities on digital notes rather than on paper, go for the best travel deals you can find on booking sites, and get online tools to handle some activities your employees would have had to handle by themselves, like accounting.
Investing in technology will not just save you more money, but would also save you more time.
Have a look at the way your organisation is run and map out ways to digitise it, so you can be more effective as a business.
3). Buy Fairly Used Equipment:
Fairly used equipment isn’t always all that bad. There are markets where they sell high-quality fairly used equipment and furniture, which may be better and cheaper than some brand new equipment which are made from substandard materials. You could invest in this equipment, which would help you cut costs and plan the growth of your company.
4). Use Freelancers:
Freelancers or independent contractors as they call them can be a lot cheaper to use than having a full-time employee with a work desk in your office, which you’d have to pay a salary to every single month.
While independent contractors may charge more as they go, their services are usually required just once in a while, and in the long-run, they appear to be the cheaper and cost-effective alternative.
5). Pay Based On Commissions:
Paying based on commissions is the best way to motivate your employees, especially the marketing team. Instead of pegging a salary at $2,000 monthly, you could peg it at $800 and tie a commission structure that could see the employee make even more than $4,000 monthly if they meet or cross certain targets.
By using commission-based structures to pay your employees, you’d save more money and make even far more money when they surpass certain targets that’d see them earn far more.
6). Avoid Selling On Credit:
Credit-based sales are one way to sink a business before it fully takes off. A lot of people prefer to purchase on credit but fail to repay on time or at all. When you sell to people on credit, you put your activities on hold because you can’t apparently reinvest your profits and also cannot really determine when they’d be able to pay you back.
If your business is still in its infantry and needs all the cash it can get to enable it to reinvest in itself and be on a high growth trajectory, then you need to avoid selling anything on credit.
7). Promote Your Business On Social Media:
Most businesses patronise the services of an ad agency to handle their company’s promotions and advertisements. These services cost a lot of money and sometimes, may not get the full results you’re looking for, despite having spent a lot.
To maximise your marketing and advertisement efforts, it’s mostly best to focus on social media marketing, which is where a bulk of the customers have not just gone to, but also spend a large part of their lives on.
Building a profile and advertising only on social media is far cheaper and more effective than many other advertisement channels, and so, organisations are advised to shift a lot of focus to it.
You could either do this by training and assigning an employee to oversee your company’s social media efforts, or by outsourcing the service to a social media management firm.
8). Hire A Good Lawyer:
Every business needs a legal counsel. This is not just to ensure that all the partners involved are well protected or that every legal paperwork is well done, but to ensure that your business stays in line with the law every step of the way.
Violating policies and more could cost your business dearly, and the best way to avoid this unwarranted expense is to ensure you never even violate them in the first place.
By having a legal counsel to go through your activities and constantly advice you on what your business should do or not, you’d be saving yourself potential financial damage that could wreck your company.