5 Ideas On Ways To Save Cash In Your Business
1. Negotiate Energy Prices
Business owners often sign with an energy provider when they first start a new venture. Once they have established a relationship with this provider, they never shop around to see if they can get better prices. However, they need to identify all potential energy savings. These savings free up much-needed money for other expenditures.
Energy prices vary greatly by the business type, usage, and location. Nevertheless, research shows small business owners pay 50 percent more for electricity than big businesses in the country. They don’t have the same leverage larger companies do and can’t spend the time to compare suppliers routinely.
2. Establish Partnerships
Establishing partnerships with related businesses serves as a great way to cut costs and still market the company if you are a business owner. However, for this technique to be successful, both businesses must benefit from the arrangement. When using this method, approach a business and propose the partnership. Some business owners refuse to enter into these types of relationships, but one can never know until they ask.
Many small business owners find themselves in a similar situation, one where' they need to find ways to save money. They want to promote their business but find it difficult to do so as they are limited in both time and money.
For instance, a clothing store might partner with a store that specializes in accessories to arrange a barter. The clothing store could offer to showcase accessories in exchange for having their clothing displayed in the accessories store. This brings more exposure to each business without costing either partner a dime. However, make certain the partner will adhere to the agreement.
A business doesn’t want to exchange goods with a partner only to find these goods are hidden on a shelf in the partner’s stockroom. Sadly, this does happen, which is why a business owner must choose their partners wisely.
3. Monitor Credit Card Deals
No-interest credit cards serve as a good example of a card that may be too good to be true. These companies offer an introductory period in which no interest will be charged. However, if the customer misses even one payment or is late with their payment, the interest kicks in. This holds even if the missed payment occurs only three or four months after the business obtains the card.
The fine print becomes of great importance when a company opts to get a new credit card because doing so could end up costing them significantly more in the long run. Furthermore, read the terms and conditions not only for the promotional period but the terms and conditions when this period ends. Don’t assume they are the same after the promotional period ends. They may be different in many other ways as well.
4. Eliminate Phantom Energy
Quite a few individuals, including business owners, fail to unplug appliances when they are not in use. If the appliance isn’t running, it’s not using any energy, or so they believe. However, phantom energy use does add to their energy bill. Many businesses are open only eight hours but leave their computers running 24 hours a day, seven days a week. One computer running non-stop may not have a huge impact on the business’s energy bill, but imagine if this figure were multiplied by 10 or 20. Every device that remains plugged in when not in use will draw energy, so unplug as many devices as possible every night. If the device will only sit idle for a few minutes or an hour, leave it plugged in. Otherwise, pull the plug and watch the energy savings add up.
Be frugal with money at all times. A business owner might purchase in bulk assuming this will save them money. However, they may find they don’t use all of the product before it expires. As a result, they waste money. In addition, the product might not expire but there could be a loss of quality if it remains in a stockroom for an extended period.