The cold weather may be making its way (finally) out of our lives, but the fact of the matter is that this time of year can be one of the hardest for small businesses to survive. Just when we thought there wasn’t enough to deal with as a small business, here comes the after mid-year slump. It’s important to realise that our ability as small business owners to increase profit doesn’t simply rely upon the quantity of sales or price of sales. It is also greatly dependant on your expenses and the spending you’re left with at the end of the month. Of course, there are plenty of ways to cut corners, but let’s focus on the ways you can do so without affecting your business’ efficacy or productivity. Here’s a few tips to warm your business soul as you suffer through this spring slump.
TIME TO GO BUSH WHEN IT COMES TO YOUR EMPLOYEES
When trying to decrease operating costs, the first thing you may wish to do is start hiring remote workers. Sure, the stigma may be that only ‘digital’ businesses can do this. However, it may be surprising how many tasks can be achieved by someone only a few towns over, or perhaps even ‘out bush’. Combine this with not having to rent a large office space or pay for things like electricity and someone’s morning tea. You’ll quickly find a hidden stash of money you’re not having to spend. It also means you have the ability to search within a much larger talent pool for the best workers.
IF YOU’RE NOT PAYING ONLINE, YOU’RE LIVING IN THE DARK AGES
It may seem simple in today’s digital world to suggest you pay your bills online instead of in line. Did you know that it costs a small business between $12 and $30 in costs to pay for a single bill? In contrast to this, paying online means fewer missed bills and more time saved. If you have the ability to automate a whole heap of your bills as well with direct debit – why not take advantage of this. The amount of time you save not having to pay bills will also save you money – winning!
GET YOUR BARTER ON
Sometimes it’s very tempting to not make the situation awkward, by not asking any of your suppliers, or even your landlord, if they can do you a better deal. Well it’s time to get down and dirty so that your business can be more sustainable in the long run. Think about the fact that if your supplier is doing an average of 10 hours a week work for you. If they’re willing to lower their rate by just $10, that’s already $5,200 a year you’re saving.
BULK BUY LIKE IT’S ARMAGEDDON
Well we did say that winter was coming. So why not stock up on all of the items you’re always going to need more of. This could be your most sold products, most used tools, or perhaps is as simple as toilet paper and tissues. There’s a lot to be said for buying items when there is money to spare and therefore making a saving. Versus leaving it until the last minute and having to buy the more expensive version.
LISTS ARE FOR LOOSE CHANGE
Yes, this step is the most boring, and the least often task a small business embarks upon. When it comes to stretching every dollar to its maximum capacity, it’s important to write down all your business costs. This may be something as simple as the amount spent on coffees out of the office. You may think it’s not going to save you very much, but then be pleasantly surprised when the process leads to finding a subscription you’d completely forgotten about – leaving more money for the essentials. If you’re not sure about cancelling a service – best to attempt going without and see if you miss it.
Hopefully these few tips can act as your winter woollies against the iciness of the coming business dip. Be sure to also stock up on comfort food and caffeine to make the long nights at work more bearable. Alternately, if you’re sick of barely surviving month to month, why not book in for a business advice session with one of our awesome team? We’re accountants who just happen to know a bunch about business, and we’d love to help you grow. Call me for a chat any time!