Featured image by Monkey Business Images
Did you know that poor money management is one of the biggest mistakes small business owners make? Here we offer five tips to save money in your small business.
According to a report from CB Insights, about 70 percent of small businesses close shop about 20 months after their first round of funding. Of those, 29 percent fail after running out of cash.
Money-saving practices are not reserved only for huge businesses. Independent professionals, as well, especially those who just landed in the business world, have to find ways to prioritize expenses and save money.
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In this article, you will find the five best tips for saving money in your small business. Get prepared to take notes and apply these tricks. You won’t regret it.
Save Money by Building Your Brand Identity Yourself
Every day, there are more and more businesses in every niche. Competition can be fierce. Small business owners know there are many challenges that come with opening a business. They have to manage money carefully and not waste it.
However, every business needs a logo. Your logo is the first point of contact a client has with your business. It is the symbol that stays in their mind and reminds them of your business. Perhaps it even reminds them to visit you again and again.
Just think about the link between letters and brand logos. For example, take the letter “M.” What do you think about when you see an “M”? Very likely, your answer is, “McDonald’s.”
And what about the number “7”? Wouldn’t a 7-Up be great right about now?
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The idea is that, unconsciously, people create a link in their mind between common things they see every day and certain brands. Keeping this in mind, it’s time to do something amazing that makes people think about your business.
Hiring a designer to create your logo might be something you can’t afford to do when you’re first starting out. If you’re like most small-business owners, that’s the period during which you especially need to save money.
But logos don’t have to be expensive. They just have to catch the eye. For example, Nike’s “Swoosh” logo cost only $35. Twitter’s first logo cost $15 and Coca Cola’s first logo didn’t cost a cent!
How about doing it yourself for zero cost?
If you think you don’t have enough creativity or inspiration to create your own logo, don’t worry. There are programs especially created to help.
A special favorite of business owners who want to save money is Canva. This is a graphic design platform that allows you to create social media graphics, presentations, posters, logos, and other visual content. It is available for both PC’s and mobile devices, and you can take advantage of millions of images, fonts, templates, and illustrations, most of them free.
You can actually create an ideal logo effortlessly, in just a few minutes.
To start designing your business logo, first register, then log in. Next, tap on “Create a design” and choose the type of graphic design you want to create. In this case, “Logo.”
You’ll find thousands of templates to inspire you. Don’t hesitate to use them, but make sure to personalize them with your brand’s colors and shapes, in order to maintain a consistent style, tone, and feel for your brand. Remember that a unique logo makes a bigger impression that a commercial one.
After you’ve finished designing your logo, tap “Download” then find it in your computer’s download file. Now, you’re ready to post your logo on all your social media profiles and make it your own.
So there you have it. You, too, can have a professional logo in just a few easy steps. So now let’s keep going.
Reduce Your No-Show Rate and Save Money with a Scheduling App
How many times you heard, “Oh, I forgot about the appointment we had today”?
Or perhaps you’ve gotten more than one last-minute text message reading, “Sorry, I can’t make it today.”
People don’t realize how annoying—and costly—no-shows are for a small business owner. Not only do you now have an empty time slot, but you also lose money.
Put simply, no-shows can ruin your business. They can even cost you your dream. So first, make sure you provide your services to people who really need them and who respect you as a service provider.
For an ideal solution to no-shows, find a way to remind your clients to show up for their appointments with you. One good idea could be an appointment scheduling app. There are plenty of them to choose from. So try a few and see which one best suits your needs.
In order to save money, consider choosing an appointment app that has a free plan and that lets you schedule appointments fast and easily from wherever you are. Remember that some apps can be a little tricky. Some of them can even make your work even harder than it was before. So choose a user-friendly app that works well for you.
Barter with Other Small Businesses
Many small business owners are reverting to the time-tested trend of bartering. Many of them are finding that they enjoy giving and receiving products and services without the exchange of cash.
Bartering works best when its a win for both businesses. To get started, propose a barter before offering to pay for a service or a product. Not every business owner is willing to accept barters, but there’s no harm in asking. At least you can try to save money this way.
There are plenty of local business owners who are in the same situation you are in. That is, they need to promote their business but they’re constrained for time and need to save money. Bartering is a great opportunity to create benefits for both businesses.
For example, if you work as a hairstylist, contact a local business that provides professional hair care products and seek to arrange a barter. For example, in exchange for their products, offer them gift cards for free services at your salon.
Always keep in mind the win-win principle. This means that if they provide you products worth $50, you need to offer them services that are worth the same amount of money. This could help both of you save cash in difficult times.
Market Your Business Yourself
In the Google era, there’s nothing you can’t learn or do. If you don’t know how to do something, all you have to do is Google it and you’ll immediately have the solution. This is important to remember when it comes to marketing your business.
Professional marketers are expensive. What’s more, they’re often busy people. But as a small-business owner, you don’t need complicated marketing in order to promote your business. Usually, local businesses need to exert only minimum effort to find local clients.
So save money by learning to promote your business yourself. Your social media pages are a great place to start.
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If you don’t know exactly what it means to promote your business on social media, here’s a solution for you. Just watch the video below to find out how to edit and what to post on your Facebook business page. Then get ready to greet new customers.
Additionally, Wes McDowell explains in another recent vlog how Instagram has become an important element in social media marketing for small businesses. “It is possible to grow an audience and a business using free Instagram strategies.” Check out these strategies here:
Frugality Is Key to Saving Money
Especially when you buy products in big quantities, you might use them frivolously. People do this all the time, without considering the fact that they’re basically wasting money when they do.
Another thing you might be doing is keeping too many products on hand. Why is this a mistake? Because you might not be able to use all of them before their expiration dates. So even if you discover a site that offers a discount for buying in quantity, don’t purchase more than you know you’ll need.
It’s not a good idea, for instance, to buy a years’ worth of a single product. Even if it doesn’t expire before a year has passed, its quality could decrease if you don’t have favorable storage conditions at your workplace.
Therefore, to save money as well as space, don’t carelessly waste products and don’t overstock your storeroom.
Additionally, if you have the possibility to buy from eco shops, you should absolutely try them as soon as possible.
Eco shops specialize in zero waste, toxin-free, cruelty-free products designed to help people more easily live an ecologically friendly life. These shops carefully select their brands and strive to stock products featuring minimal packaging, zero plastic, and compostable or recyclable materials. Eco shops are an inexpensive alternative, and they are healthier for people and for the planet. Find out if you have eco shops in your area and make a green choice.
“It’s not how much money you make, but how much money you keep,
how hard it works for you, and how many generations you keep it for.”
— Robert Kiyosaki
Always remember that you’re working for yourself, and keep in mind that if you waste money, you’re wasting your money. If you develop the ability to think and to act practically in order to save money in your small business, the real winner will be you.
About the Author
Diana Muresan is a marketing specialist and copywriter based in Romania. She covers small business topics with a focus on beauty and wellness industries. Find her on Instagram: https://www.instagram.com/diana.muresan/
