How To Save Money In Your Small Family Business
When it comes to family business’, you must be smart with your money to keep afloat. Smaller business’ often do not have the capacity and privilege to make risky investments or blow their budget on expensive advertising as one mistake can forfeit the survival of the business.
Without a solid budget and plan, it can be easy to overspend, or spend in the wrong area. However, with attention to detail and a commitment to every aspect of your business, you can save money to pave the way for a prosperous future.
Compare, contrast, and negotiate
It is important that as small business owner, you know the worth of a good you are buying and are not afraid to negotiate for a lower price. Additionally, you may shop around and compare different vendors to obtain the best deals. As a market-expert, you should be considerate of the quality of goods which suppliers offer. Although opting for a cheaper version of a product you regularly buy will cut costs, if the quality is poorer, it can negatively impact your reputation through the provision of low-grade goods or services.
It should be standard procedure to evaluate the cost-effectiveness of buying from different suppliers as a slip-up could lead to a decrease profit. Do not be shy when it comes to changing things up! If your decision is well-thought out, you will be able to save a lot of money through exploring the market.
Interestingly, Ryan Rosett from Credibly notes how in times of financial uncertainty (as seen with the coronavirus pandemic), vendors are more likely to accept lower offers from businesses. Ultimately, it is against their interest for small businesses to fail as it also keeps them alive. If you are aware of the current financial climate, bartering can be your best friend.
Today, businesses are opting for a more holistic form of marketing which relies on networking, word of mouth, and for a family business, building up strong rapport in your community. Not only is this method a cheaper way of advertising, but it is also becoming more and more popular because of its effectiveness. Using social media, you can also adopt this strategy. Often, people may associate social media advertising with influencer campaigns and plugged posts. However, you can advertise in a more authentic way. For example, utilising SEO through writing blog posts, and by being active on websites such as LinkedIn – where you can network digitally on the go and 24/7.
Highlighting un-necessary costs
By drawing up a budget, you can more easily highlight non-essential costs. For example, you could potentially go without hiring professional cleaners to maintain your space – if it’s small enough this is something you could do yourself or could ask family members to help you out. You may also consider investing in a quality tool chest loaded with all the essentials, so that if minor things need repairing, you won’t have to fork out loads for someone to come round.
By keeping a track of your expenses, you can see what is working and what isn’t and therefore make changes which will further your business. Do not be afraid to try new initiatives but remain sensible and stay within your means.