It takes lots of skill, dedication, and hard work to create a successful small business, and there are many things to consider before trying to sell your products or services.
Unfortunately, a high percentage of small businesses fail within the first two years, mainly because they are not making adequate profits to justify continuing. If you run a small business or are thinking of starting one, you must consider how to maximize your bottom line and build on your success every year.
Here are 4 ways to save money and make your small business more profitable.
Buy second-hand office equipment
Office equipment isn’t cheap and, although you may get away with using the basics initially, as you grow, you will need reliable, cost-effective equipment that will last a good while. Instead of buying brand new or entering into expensive leasing contracts, why not consider buying second-hand?
Many second-hand items are not only in perfect working order but will typically come with some form of guarantee, so there are bargains to be had if you shop around. The less you shell out, the more profit you will make, so it’s wise to weigh up the pros and cons before buying new.
Keep customers happy
If you want to become or remain profitable, you need to focus on the biggest asset your business has – your customers. According to ServiceNow, a company that specializes in modern digital workflows and integrated software solutions, “a happy customer is not only a potential repeat customer but is one who has the potential to evangelize or spread positive words about a business. A competitive business is a business with satisfied customers.”
Focussing on the needs of your customers and the whole customer journey should lead to increased customer satisfaction which, in turn, should help maximize your profits.
Are your suppliers giving you the best deals?
Having a group of reliable suppliers is paramount, but are they still offering the most competitive prices, or is it time to start looking elsewhere? If you have been using the same suppliers for a long time, it is worth meeting with them to discuss costs and any alternative products that they may have.
It doesn’t, of course, make sense to save money by switching to inferior products that could compromise the quality of your brand, but don’t be afraid to renegotiate contracts if you feel that it’s justified.
For environmental reasons, all businesses should be dedicated to reducing waste – and it could also save you a lot of money every year. Paper waste is probably the biggest problem in offices across the globe, so you should consider more eco-friendly alternatives. Recycled paper and online filing systems are just a few examples that are easy to implement and will help save money.
If your employees have a habit of automatically printing documents, ask them to be mindful of the cost of printer ink, as well as the environmental impact it can have. Many simple changes can lead to reduced costs and higher profit margins.