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Managing a small business is essentially a collection of fulltime jobs. In addition to recruiting staff, overseeing employees and meeting with clients, many small business owners have to keep a careful eye on their enterprises’ finances.
Since a sizable number of small businesses are forced to close their doors within their first year operation, it’s only natural that so many entrepreneurs would seek to limit spending.
Fortunately, saving money doesn’t have to be an uphill battle for most small businesses. When working to keep your company’s finances in check, the following tips are sure to come in handy.
Invest in Money Management Software
Dependable money management software can be a boon to any enterprise looking to make the most of its capital. Investing in procurement management software that meticulously keeps track of spending can provide you with an informative accounting of how your business’s resources are being allocated.
This valuable info will help you make informed financial decisions and keeping wasteful spending in check. Money management software is particularly important for small businesses that lack dedicated accounting teams or team members with accounting backgrounds. That being said, the right software can prove extremely helpful to even the most seasoned financial professional.
Work with Flexible Vendors
A staggering number of small business owners are unaware of vendor discounts that stand to save them a small fortune. However, since many vendors don’t openly advertise small business discounts, the onus is on business owners to make the necessary enquiries.
Even if you have no reason to believe that a vendor provides discounts, there’s absolutely no harm in asking. Worst case scenario: you receive a mildly disappointing answer.
Additionally, even if a vendor doesn’t generally offer discounts, they may be more open to negotiation than you think. Best case scenario: you save a princely sum in vendor costs. In other words, this is the very epitome of a low risk / high reward situation.
If none of the vendors you currently work with are willing to provide your enterprise with discounts, it may be worth your while to seek out vendors who will. To keep wasted time to a minimum, begin every communication with a prospective vendor by asking about small business discounts.
Furthermore, it’s generally best to ask about these discounts before committing to do business with a vendor. Once a contract has been signed, you’ve effectively agreed to their terms, and any discounts they provide after this point will be purely out of the kindness.
Don’t Obsess Over Certain Brands
Obsessing over brands is one of the worst things a fledgling enterprise can do to itself. You’d be hard-pressed to find someone who doesn’t have brand preferences, but when it comes to office equipment and other business expenses, there should always be room for flexibility.
For example, if your preferred brand of computer equipment is unreasonably pricey, don’t be afraid to explore your options. This isn’t to say that some brands aren’t superior to others, but in all likelihood, you’ll be able to find equipment that’s just as dependable for a discounted cost. If you’re on the fence about a certain brand, simply fire up your favorite search engine and read some consumer feedback.
Allow Team Members to Telecommute
If a fair portion of your workforce doesn’t need to be physically present to carry out their respective job duties, consider allowing certain team members to work from home.
In addition to being conducive to high productivity and increased employee satisfaction, telecommuting carries a number of financial perks. For starters, the fewer employees occupying the workspace, the few resources you’ll need to expend.
Not only can this reduce food and power costs, it can also bring down your rent. After all, if a sizable number of employees work from home on a daily basis, there’s no sense in renting needlessly large office space.
To call small business management challenging would be an understatement. Each day, small business owners carry out a variety of tasks that are crucial to the survival of their respective enterprises.
Unsurprisingly, many of these tasks involve money management. Although financial resources are vitally important to every enterprise, fledgling small businesses need to be particularly careful with their capital. Being smart with your money during your first year of operation can set the stage for lasting success down the road.