As business owners, we wear many hats. Not only must we stay true to our brands and provide our customers with the best service, but we must also manage the daily finances to keep our businesses afloat. The first part of running our businesses is fun; the second part — not so much. Here are 7 strategies to help you run a tight ship and keep more of the money in your pocket.
1. Review Expenses Regularly
This strategy may seem like a no-brainer, but in all the daily hustle and bustle, we tend to forget that it’s vital to the health and longevity of our businesses to regularly track expenses. Assess your phone, internet and utility expenses and actively shop around for better terms. It may seem inconsequential haggling for better deals, but over time, the savings add up. It could be the difference between your business being profitable and sustainable or barely hanging on.
2. Evaluate Your Point-of-Sale Software
At first, it may seem advantageous to purchase the most high-end software for your business, but consider whether or not paying the monthly fees are worth it for the benefits you are receiving. Ask yourself: Does the software align with my business model? Do I really require all the bells and whistles the software provides? If the answer to either one of these questions is “no,” it’s time to re-evaluate and research competitive alternatives that may save you money.
3. Choose the Right Events
Tempting as it may be to set up a vendor booth at large regional bridal shows, it may not be the best decision for your bottom line. The large shows typically require a hefty investment and you may not see a substantial enough financial return to justify the expense. Consider smaller events, such as open houses at local wedding venues or more intimate bridal shows, where you have the opportunity to connect face-to-face and build relationships.
4. Leverage In-House Talents
When requiring a problem solved or a specific service provided, look in-house and determine whether your staff may be up to the challenge. They may have hidden skills that you are unaware of. Artistic and creative staff members could design print materials or take care of social media accounts and regular postings. Additionally, your staff will feel valued, which is great for morale.
5. Hire Experience-Hungry Interns
Interns can bring a lot of energy to a business. Their willingness to learn and gain real-world experience is to your advantage. Put them to work for tasks such as website updates, social media postings, public relations or graphic design. You save money and the expertise of your full-time staff are better served elsewhere within your business or with your customers.
6. Renegotiate Your Lease
Ideally, your lease should be at or below 10% of your gross sales. Be rent-savvy and inform yourself of the local commercial real estate market. Knowledge is power. You can increase your negotiating leverage by doing your homework before approaching your landlord for better terms.
7. Go Paperless
This strategy has been a biggie in saving money within my business. Digital is the new paper. Instead of offering a bride a paper contract to sign, consider having the contract signed on a tablet. The same applies to receipts; emailing rather than printing them cuts costs in a big way.
Final Thoughts: These strategies may seem obvious in their simplicity, but they are strategies that you can begin implementing immediately. It may take some commitment at first, but in the long-term, it is well worth the time and effort. Do you believe that your business is worth it? I do.
What strategies do you incorporate to save money for your business? Do you have additional tips not mentioned in the article? We want to know, so share your feedback and insights.