Small businesses should always recognise the importance of saving and managing cash resources effectively.
The chief marketing officer of SME business funding provider Lulalend, Tom Stuart, believes that this approach to responsible money management is valid for entrepreneurs and small businesses.
It is important that SMEs thrive as they play a pivotal part in reviving the local economy.
Entrepreneurs should see their business enterprises not only as way to make a living but also as a way to create sustainable wealth, and the best way of doing so is by making the most of their income and saving wherever they can.
Saving money does not mean a business needs to compromise service or quality. It just means business owners need to find creative ways to make sure their business is run efficiently and make sure processes are streamlined to ensure maximum efficiency.
“There are a lot of easy-to-set up measures that can help SMEs better look after their hard-earned cash. Implementing these will help businesses build up a protective buffer to use on a rainy day or even future finance expansion dreams.
“Whatever your long-term dreams or goals might be, we hope that these tips can make managing your business just that little bit easier,” said Stuart.
These tips include:
1. Know thy neighbour
You can save a lot of money by sharing advertising or promotional costs with other small business owners who are not competitors but do target the same audience.
2. Offer advice
Have you considered appearing as an expert speaker at a local community meeting or writing an advice piece for a local newspaper? You gain from the credibility of appearing or being seen as someone who knows the sector they work in, which is valuable – and free – marketing exposure.
3. Never accept the first offer
When you are negotiating with suppliers, always try and get a better price. They want your business, and there is most likely a compromise price that will be financially viable for both parties.
4. No plan?
Financial goal setting is an intricate part of any savings plan, and this is as true for SMEs as it is for ordinary people. If you don’t have a goal in mind of how much you want to save, you are unlikely to succeed. Failing to plan is planning to fail, as the saying goes. Hand in hand with putting a plan or a goal in place is the need for regular reviews to see if you are on track.
5. Turn to tech
There are many easy-to-access and effective tech solutions that can make your day-to-day operations easy to manage. Most of these options are also very affordable and mean you can put the money to use on other things you need.
“Perhaps one of the best things any small business owner can do is to share tips and advice with others who are in the same position. Share the best money-saving tips you implemented with someone else, and use this month to pay it forward,” said Stuart.
