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Filed under: Tip of the Day
 There are lots of ways that savvy small-business owners can save some green. Here are five tips to help keep a little bit more cash in your pocket.
- Don’t fall for technology hype. Although new technology is tempting – especially those cool smartphones that sync every aspect of your life in one handheld device – they’re not always the smartest purchase. Many business owners get sucked in by latest and greatest tech items such as iPads and innovative computer software; however, think before you buy – are you simply intrigued personally by the product? You must evaluate how useful the item is for your particular business before doling out money for it. If you do want a fancy smartphone, think about its ROI for your business: For example, if one of your service goals is to send a quick response to all e-mails you receive within 10 minutes, a smartphone would be a great investment.
- Hang on to your home office. Many business owners think that finding a retail space to rent is the first step in starting a business; however, this couldn’t be further from the truth. If you often travel out of your shop space to see clients, remaining home-based will help tremendously when it comes to saving money. Until you grow large enough that you absolutely need more space for extra equipment or need a showroom, it’s much cheaper to run the show from a place that you’re already paying to also live in. If your business is product-driven, a showroom might be necessary, but even in that case, make sure you find the best deal on renting. Rent is an ongoing expense, so weigh it carefully. Some decorators do choose to rent inexpensive office space with a conference room to meet clients outside of their home-based business, if their homes aren’t conducive to client meetings.
- Try used office equipment. If you do move into a retail space, consider purchasing used desks, cabinets and other office equipment. There are always opportunities to buy used equipment and furniture, especially in the last couple years with the consolidation of large companies. If a company is going out of business, it’ll have tons of used machines and office supplies for low prices because it has to get rid of them. In many cases, the goods look brand-new and still run smoothly. In addition, as embroidery shop owners close their doors for a variety of reasons, you can benefit from purchasing their embroidery-specific equipment and supplies.
- Rethink recurring expenses. Every recurring expense, such as your rent and even your Internet bill, has to be offset by recurring revenue. Pay attention to what you’re spending the most money on every month and look at renegotiating the prices, if possible. For example, if you’re in a commercial property, you should think about renegotiating the lease or looking for cheaper space to rent. You should examine every dollar that goes out automatically, on a monthly basis. The recurring bills are going to have the biggest effect on your bottom line because if you don’t have revenue to offset expenses, your cash flow will be negative.
- Try combination-approach advertising. Just because some companies spend half their budgets on marketing and advertising doesn’t mean you have to do that. Social media vehicles, such as Facebook, Twitter and LinkedIn, have been proven successful because most people are on one of the three Internet-based programs. Self-promotion items are also a cheap, easy way to advertise if you choose an item that represents your company rather than choosing the cheapest one. Using a combination of these approaches and reaching clients from several angles is the most efficient way to get your message across.
From Stitches’ Embroidery Business Insights vol. 123
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