Saving the Business When Times Are Tough

What can you do when your small business is losing money?

It can be easy to panic and start laying off staff or cutting major costs right away, but that isn't always necessary. There are other measures you can take to reign in your costs, thus making the most of your finances and easing the financial burden.

Here are some key areas you need to re-assess so you can free up some much needed wiggle room in your budget.

Electricity Bills 

Electricity bills can quickly get astronomical. Combat them by:

• Turning off appliances when not in use;
• Making sure your place of work is well insulated;
• Using the most efficient heating you can;
• Switching to equipment that needs less power, such as a laptop over a desktop PC.

Phone and Internet Bills

Are you getting the best deal?

When you're trying to cut expenses, shopping around should become second nature to you. Many providers offer money-saving phone and internet bundles.

To cut your communication costs dramatically, consider looking into VOIP or Skype for your communication needs.

Financial Fees

From bank charges to Ecommerce fees, the price of keeping the cash flowing in your business can quickly mount up.

Always check to find out if other banks in your area offer a better deal - and have a word with your bank manager too, to make sure your account is the most cost effective one for you.

If Ecommerce fees are hitting your budget hard, consider a move to PayPal, which offers secure online payment facilities for a low fee.

Meeting and Travel Costs

 The cost of traveling to meetings, and perhaps hiring a room or buying coffee, can soon add up.

Perhaps it's time for your small business to embrace telecommuting - by using Skype and a web cam; you can host professional conference calls and as good as face to face meetings at a fraction of the cost.

Software and Storage

If software updates and licenses are squeezing your bank balance, consider looking into Cloud hosting and comparing the cost of online storage against what you are currently paying for physical storage and software licenses.

Depending on your storage needs, you may find it's more cost effective to host your files and databases online, not to mention that your data will be easy to access from anywhere with an internet connection - useful for that telecommuting.

Printing Costs

It's so easy to just click that "print" button, but printing costs can mount up quickly for a small business. Keep them in check by:

• Only printing when you absolutely must;
• Printing double sided;
• Using your printers draft or ink saving setting if it has one;
• Finding out if you could make a saving by buying recycled cartridges.

Marketing Costs

Marketing can cost a shocking amount, and yet good marketing is of course necessary to the survival of any business.

It's a bit of a catch 22, so what can you do about it? The answer is to look for free or low cost marketing options that have the potential for good returns.

Many social networking sites are free to use, yet a well-executed social media campaign can do wonders for your business. Learning how to use social media to your advantage will also help you to reach and sell to more clients, providing a much needed boost to your income.

Buying Choices

 Poor buying choices are the bane of struggling businesses.

From office supplies to tea and coffee, costs can quickly mount up and worsen the squeeze. Whatever you are buying, evaluate it carefully and make sure you are getting the best deal:

• Do you really need it? If you can run your business as well without it, shelve the purchase for now;
• Are you getting the best deal? Whatever you are buying, from insurance to envelopes, it's worth shopping around to find out where the best bargains are to be had;
• Can you buy second hand or reconditioned? It's possible to snap up items that are as good as new, for a fraction of the new price;
• Would it be cheaper wholesale? Look into buying wholesale or even chipping in with other business owners to get a wholesale price.

There's no doubt about it, it's stressful when times are tough for your small business.

But with a bit of forward planning and the willingness to look closely at where your money is going, you can quickly start to make savings that will add up to a more stable bank balance.