You don’t have a huge bankroll as a small- or medium-sized business. You are likely operating on a tight budget while you try to grow your customer base and your profits. You simply can’t afford to make any mistakes in your budgeting as you can easily find yourself in the red. Fortunately, you don’t have to have a huge, venture capital fund to be successful. All you need is some business savvy and the ability to make some smart financial decisions to make your business a success.
Here are 5 easy and effective ways you can reduce your business costs and improve your bottom line:
1.Sign Up for Invoice Factoring
Often, you find yourself in the situation that you are cash poor. You may have had a great month and provided services to a variety of new customers, but you won’t have the cash from those services until your customers pay their invoices.
Your actual payments can sometimes lag behind your invoices for 30, 60 and even 90 days, creating a deficit of many thousands of dollars. Invoice factoring services aims to close this gap so that you have the cash you need when you need it.
An invoice factoring company essentially buys your invoices. They give you and advance for the invoice—anywhere from 80-95%. When customers pay for those invoices, the factoring service collects the payment and pays you the remaining balance minus the factoring fee. By having this cash in hand, you will have the ability to take advantage of investment opportunities that can grow your business or jump on sale prices for merchandise, helping you to save money.
2. Maximize Tax Credits and Deductions
You may feel like you have more taxes to pay as a business entity, but you also qualify for more tax credits and deductions. It is very important that you work with an experienced accountant who can help you find all the opportunities for which you qualify to maximize your tax savings.
Look for an accountant who has experience working with businesses like yours and who has a reputation for being aggressive in finding ways to help businesses save. You can ask your colleagues for recommendations, or you can search online to see what others in the business community have to say.
You can also hire an accountant to review your past returns and file an amendment if more credits and deductions can be found.
3. Work with the Right Vendors
Whether you need to buy wholesale products to stock your shelves or you need vendors to provide services for your business, such as paper for the copier or water for the coolers, there are always opportunities to save. You can either shop around to find a less expensive vendor, or you can negotiate with the vendors you have for lower prices.
Many vendors are willing to negotiate a lower price with you than to lose you as a customer. A savings of 10 percent off your services or goods adds up if you can get it across the board.
Whether your business is thriving and you can’t keep up, or you are waiting on clients to pay their invoices, Universal Funding can help your growing company. Call us at 800.405.6035 or complete our rate form today to learn more about invoice factoring and how it can improve your company’s cash flow.
4. Take Advantage of Low-Cost Marketing Channels
The Internet has opened up a world of possibility for small businesses to get the word out about their products and services. While you can certainly pay thousands of dollars per month for an SEO consultant and online marketing strategy, you can also create a campaign that gets results for very little money.
A lot of marketing success today comes from establishing a strong content marketing strategy. Whether you’re creating new written blog content, slide shares, ebooks or you want to make an infographic, the production costs for these are much lower than they used to be even five years ago.
You can maintain a website and blog very inexpensively. You can open up accounts on dozens of social media sites for free. You can host contests and giveaways for no more than the price of the product or service you are offering.
Your marketing efforts aren’t limited to online. Even hiring a sign waver or costumed promoter can get you a huge return for very little money. Focus on low-cost marketing channels with huge impact to get the word out about your business and help it grow.
5. Outsource Services
You don’t always have to hire a full-time employee to get the services you need. In many cases, you can hire a freelancer or consultant to accomplish your goals, while saving a lot of money.
For example, you can hire a marketing consultant or a freelance writer instead of hiring an in-house marketing staff. Many small- to mid-sized enterprises also farm out bookkeeping, accounting, and legal roles. You may want to consider factoring your invoices for access to immediate capital as well as streamlining your accounts receivable functions.
Outsourcing has the potential to save you thousands of dollars that you could invest in other areas of your business.
There are many more ways for you to save as a small business. Be creative and think outside the box to keep your operations trim while maximizing your profits.
About Universal Funding
Universal Funding is a private funding source that has funded thousands of businesses and more than $2 billion since 1998. We turn your accounts receivable into the funding you need through invoice factoring and can have capital in your hands in a matter of days.