Saving money is one of the great cornerstones of life. It’s something we do every day when we buy the supermarket own-branded food, and walk to the store instead of taking the car. However, whilst all these little savings are good in practice and add up in the end, there’s some bigger methods on the market for saving as much money as you can. And there’s no better place to try this than in your own business!
Not everyone has the luxury to run a home business, but when you do you need everything on your side. And this where this post aims to come in; saving all the money when you need to spend to make profit is an artform after all.
We haven’t touched much upon running your own business before, so it’s time for all of us to turn our hands to something new. And the one thing we can all understand about being in business, and something we’re experts on, is knowing how to look after any money we bring in and pay out like a pro! With that in mind, here’s some tips to make sure you’re being as cost effective as possible when it comes to running a business from your own living room.
Try to Collaborate
Making your own money completely off of your own back is going to be tricky when you’re starting out, and even a few years down the line there’s a good chance you’re taken less seriously than the bigger businesses that seem to dominate the market. However, there’s also a good chance that in your area alone there’s going to be at least a few businesses just like you! After all, there’s 5.7 million small businesses in the UK alone; they’ve got to fit in somewhere.
So try to keep your resources in the same pot. If you use the same supplier or buy the same kind of stock, try to cut a deal together. It could work out a lot cheaper, and means you’ve got a good friend on your side during the bad times. When small business owners work together, there’s a lot bigger profit margin on the market, as you can promote with each other and run events together.
Try to Negotiate
This is an especially good trick to try with any local supplier you have around you, as when it comes to stocking up your business week by week, you’re going to need some cheap rates to continue on with. It’s going to take some time to be able to cut yourself a deal, after all you need to prove you’re a loyal customer, but once you’ve shown them you’re bringing in a lot of business, your chances are dramatically improved! And usually this just involves the passage of time.
Sell yourself well, and be confident in your statement. Your supplier is simply another business, and they know you can go elsewhere if you’re finding it too expensive to stay with them. This means they’ll usually be amenable to your suggestions, as long as they’re not dramatic and work in both your favour.
If you can’t cut down the bulk of the price, no matter how hard you’re negotiating, try to negotiate the prices of other costs associated with getting your inventory into your store the next day. For example, if you’re using their delivery methods rather than shipping yourself, try to cut a deal over the shipping times or the price of heavy shipments.
Try Doing the Legwork Yourself
As mentioned above, this means shipping everything yourself, transporting your employees whenever you can, and ultimately using your own vehicle for everything that requires out of office work.
Yes, you might have to pay more for the petrol, but at the end of the day you’re getting a lot more use out of your vehicle (plus it’s incredibly productive use!), and you’re not going to have to pay for any extra costs in hiring out couriers. As long as the petrol costs, or overtime pay, aren’t costing you the entire bank and breaking your profit margins in half, this is a good option to try out.
Take Care of Any Employees
If you’re big enough to take on employees outside of your family and friend circle, abiding by all laws involved with employment is going to be the smartest move from the outset. Of course, this just sounds like common sense, but there’s a lot of businesses out there that don’t take the time or effort to research the laws and standards that apply to them! Always remember that just because you’re running a home business doesn’t mean any workers you take on take care of themselves.
Try to take responsibility when you know a fault lays at your door, as a lengthy court case isn’t going to work out in your favour at all. For help with this matter, a good place to start with if you do suffer any compensation claims is DeSalvo Law. When you’ve got specialist lawyers on your side to make the ride a little smoother, there’s a good chance you can come out with your profits and productivity time still in check on the other side.
Keep Your Bills in Mind
Of course you’re always going to need to pay your bills, but make sure you’re always keeping an eye on the sum you’re going to have to pay that month. Know where you can cut back if the sum is larger than usual, and if it’s lower know what areas are saving you money.
Capitalising on all aspects of your business means understanding where you’re going right and wrong, after all. Similarly, try to pay your bills exactly on time, as you don’t want to pay early or late respectively. Do them as they come in; it’s easy to forget one that comes a couple days after the rest!
Saving money in your home business is easier than you think when you put it like this!
Boost your income in 30 days!
Boost your income with this FREE 30 day money-making crash course. Plus get exclusive access to our Facebook group!