Starting a business is a bold step; the world offers you challenges on a platter of gold, with no regard for you as a newbie. One of these challenges is capital. SMEs may not make profit in the first or second year, but money is extremely essential to sustain the business. The problem is, a lot of SMEs fall into the trap of “overcapitalization” (http://quickwhatis.com/how-startups-can-avoid-overcapitalization/) due to pressure in the industry from already established firms. The good news is there is a better way to manage expenses and leave room for re-investment of available funds.
These are five tips to help you cut down your expenses:
Hire Interns: Interns are less expensive and thirsty for knowledge. Give them a platform to grow while they help you grow. Established companies are searching for “highly experienced staff” but no one is willing to be the experience the intern needs. Interns are a great choice as their minds are like rough diamonds that are not defined by the world’s schema that limits creativity. They are young and vibrant.
Try Inbound Marketing: Traditional marketing is invasive. It often involves interrupting people in the middle of their activities and impressing them in five seconds, to care enough to grant you more time to pitch your product without losing interest. Inbound marketing however, is more customer centric. It attracts potential customers by churning out relatable or valuable content to help solve their problems. It positions you as a thought leader and this makes customers search for you and not the other way around. It is cheaper and more genuine.
Be Inexpensive, Not Cheap: When purchasing goods and services required for the advancement of the company, go for quality and not quantity. Patronize affordable quality. You could also barter service if you do not have sufficient cash to afford the “quality” you need. Avoid cheap services and products as they are not long lasting and eventually result in increase in expenses due to repair cost.
Cut Utility Cost by Working 4 days a week: There are no weekends or week days for an entrepreneur but you can run a one-day-off system every week with your staff, permitting them to work from home. This will reduce electricity usage and save utility cost. Assign and emphasize their tasks for that day and take measures to ensure they are delivered that day.
Negotiate When Possible: Don’t accept every price tag thrown at you for services and products. Negotiate. Bargain to get the best price possible for a product or service. Find a way to spend less by beating the price down or offering something in return.
It is not easy being an entrepreneur, but success does not come easy either. So, don’t give up, we believe in you and we think big of you.