When opening up a business, the aim usually is to not only have the freedom to personally control things, but also to maximize profits by keeping all costs at a minimum level. There are quite a number of things you can do to keep your costs down as a business owner:
Are you the primary owner and manager of the business? If you find yourself managing multiple accounts and areas of the company, it will become overwhelming. Consider partnering up to have another person help you manage the company.
New Advertising Methods
Online marketing provides a great option to expand your visibility to your customers. Social media is one of the best options to help you market the business, and it is free.
Consider cheap advertising channels
Setting up a blog, or using the social media for advertising purposes will mean that advertising fees are greatly reduced, considering that options such as the mass media are quite costly. Social media would especially be a good option for small businesses that have no huge capital to enable the use of other major and main stream advertising methods.
Get affordable office space
Office space really uses up a lot of capital when it comes to running business, considering the fact that business generally take a while before they start bringing in returns. It’s therefore best to get only that which the business can sustain. An office in a high end location may attract high end customers, but if the business cannot sustain such costs, then there will be the risk of incurring losses.
Additionally, a newly set up business may not have enough capital to acquire large business premises, hence, you can consider having some of the workers do their jobs from home. This way, the office space they may otherwise require does not have to be provided; not forgetting that this will enable saving of both the time and money spent by commuting workers.
Get inexpensive furniture and assets
While acquiring assets such as furniture and equipment for the business, go for cheaper options. State of the art items may be appealing but may not translate to equally high profit margins, hence, its best to work with what your business can afford. Consider second hand goods that are still in usable condition. You can easily obtain these from other business that may be unloading their property. Also, when acquiring supplies, its best to do it in huge volumes, in order to enjoy the reduced costs that come with buying in huge amounts.
Control employee wastage
Wastage of supplies is common, and especially done if employees are careless and unmindful. Any business owner should ensure that wastage is controlled as much as possible. Some employees may develop a habit of picking small items, and in the long run, this will accumulate to more expenses. Try to restrict such activity in your business. Also, on every possible occasion, get the employees to chip in new ideas on how to make savings for the company.