Running a small business can often be difficult. This is especially the case when the business first begins growing. Because growth usually causes expenditure to increase, your overheads will immediately go up. However, this does not mean that your revenue will match it, at first. This is for a variety of reasons, but there might be a point after the business has started to grow where you seem to be going backwards. You may even feel as though you are going under when this happens. It is because of this that it is important to keep your overheads as low as possible in order to weather this storm and make it to the next level.
Use storage units instead of building a warehouse
Sure, there might be a time when you need a warehouse. If your business grows to such an extent that a warehouse is the only cost-effective way to store your stock, then you will have to invest in that area. However, when you are first growing your business, a warehouse may end up being an expensive albatross around your neck. It is during this time that a business storage facility will be able to offer you the space you need, without increasing your overheads by an unaffordable amount.
By using a business storage facility, you will have the opportunity to store your stock, which is vital if you want to be able to grow without having to take out a costly rental agreement or even purchase a dedicated warehouse. It means that if you need to scale back your operation a little bit then that option is there for you without being tied into a long-term, expensive contract.
Be a paperless company
Why waste money on printers, ink cartridges and reams of paper, when you can deal with everything electronically? Almost everyone has an email address these days – this allows you to send receipts, purchase notices, bills and anything else that you can think of electronically. It might seem like a small thing, but using paper can work out costly in the long run. If you want to try and save money and reduce overheads for your business then going paperless, or at least cutting down as much as possible, is one of the easiest and most effective ways to do so.
Get a good accountant
This might seem counterproductive. Why get an accountant when you can do your books yourself with accounting software? Put simply, it’s because a good accountant is worth their weight in gold. They will save you more money than they cost in the long term. They will be able to reduce your overheads for you and help you towards cutting costs as required to run your business profitably.
Because there are a lot of overheads in a business, an accountant will be able to spot the right places for you to cut back. They will be able to advise you where to cut and not affect the performance of the business too much. They will also be able to save you money on your tax bill, which can often be a large overhead that sends a lot of companies under.
Use social media to your advantage
Advertising can be extremely expensive. This is why social media is so important to a small business that is just getting started. When you are able to use social media to increase your customer base, it can help to decrease your advertising costs. So, make good use of all the social media platforms that are out there. Obviously, there is no guaranteed way to go viral but always make this your objective with your posts. This will give you free advertising and help to increase the number of people that see your products.
It is also important to link the various social media platforms together. This means that you will be able to post things to a number of social media platforms all at the same time, with just a single post. This helps to cut down on the amount of time it takes to make posts, and makes your social media use much more efficient. This is something that you can do yourself whenever you have a spare five minutes. Unless you have a really big company, you do not need a social media manager. Using social media to cut down your advertising costs is a fantastic way to reduce your overheads without cutting down on the business you receive.