New to entrepreneurship? Keeping costs down will be one of your main priorities. While securing a competitive credit card processing rate from a reputable merchant services company like Humbolt Merchant Services is a great place to start, there are a number of other things you can do to cut costs. Let’s take a look at ten of them…
Haggle with Vendors
When your vendors quote you a price, find out if that’s their real price. Oftentimes, vendors will be willing to let you negotiate a lower price, especially if they’re worried you’re shopping around. While not all vendors will be willing to haggle, it never hurts to ask.
Need more staff but want to keep salary costs at a minimum? Hire some interns! Internships are a great way to minimize hiring costs while simultaneously allowing you to “test drive” future employees.
Pool Your Purchasing Power
Want to keep inventory/supply costs as low as possible? Forming a purchasing co-op with likeminded businesses will allow you to secure more favorable pricing for goods and services.
Want to up your purchasing power even further? Trading your goods or services for those of other businesses is a great way to get more for less. Furthermore, it helps you get rid of excess stock while maximizing your cash flow.
Going green isn’t just good for the environment, it’s good for your business as well. Take steps to reduce your carbon footprint and you’ll find your increasing your profitability as well. Need a few ideas for getting started? Power down computers at night (unplug the cords as well), purchase environmentally friendly paper and use natural light whenever possible.
Need to acquire equipment? Consider leasing instead of buying. Doing so will help you avoid shelling out a lot of cash in upfront costs for equipment you may have to replace down the road anyway. Plus, it helps you avoid repair and maintenance costs.
Buy in Bulk
Want to secure the best rate on office supplies from your vendors? Buying items like printer paper and letterhead in bulk allows you to do precisely that. While the savings may be small in the short term, over time they can really add up.
Sublet Office Space
Only need a little bit of room for your enterprise? Sublet office space from another business to minimize your rent. Have more space than you need? Rent out your extra space to other businesses.
There may be days as a small business owner where you feel like you can do it all but we’ve got a secret for you … you can’t. By outsourcing some of your day-to-day tasks you free up yourself to focus on the most important item on your daily agenda – generating more income for your business.
Time Your Payments
The longer your money is in your bank account, the more interest you can earn on it. Delay paying your business related bills until just before late fees kick in to improve your cash flow.