As we are in the midst of a cost of living crisis, the prospects for small business owners can seem relatively bleak. Now is the time for small businesses to scale back and cut down on any irrelevant costs before they grow – focusing on what will drive revenue and help them to succeed within their market.
Small businesses at the start of their journey are likely to be eligible for grants or loans that can help them to grow. The great thing to note about grants is that they usually do not have to be paid back, so can be invested well and help to drive growth. Because of this, they are highly competitive.
In order to apply for a grant, small business owners should ensure that all their paperwork, finances and documents are in check, as well as have clear business plans for growth. This will help to improve the chances of receiving the grant.
Small business owners can also seek out small business or startup loans from their banks or credit unions. Unlike grants, loans will need to be paid back. These can help small businesses to cover larger overhead costs at the beginning and focus their own money and spending on business growth areas – which can help to save money in the long run. It is important to remember that loans may accrue additional fees and interest rates so this is certainly something to be aware of.
Hire Young Staff
A great perk of hiring young staff who may be relatively inexperienced is that they can be trained up and moulded as to how you would like your small business model to operate. Unlike more qualified members of the workforce, young staff can be paid less and are likely to be open to learning opportunities. It is likely to be better to invest time and energy into training them up as opposed to paying a greater salary for a more experienced employee who may be more reluctant to adopt business changes.
Get Creative
Paid advertising is an expensive route for all businesses, not just small businesses. Instead, earned media and advertising can be a great route to go down, and help you to save money on advertising costs.
Organic advertising needs to be very creative. It is thus important that small business owners are open to new ideas and ways of getting people’s attention, for example through social media or knocking on doors.
Work Remotely
Remote working, as opposed to paying the overhead costs of an office, including its supplies, bills, furniture and equipment, can be a great way for small business owners to save money.
Paying rent towards an office location can be a great expense. Since the pandemic, the majority of businesses have adopted a flexible way of working, allowing their employees to work from an office some of the time, as well as remotely.
By doing so, this proved that remote working is still as efficient as working in an office, and allows for a better work life balance. Remote working can also help employees to save money on their commute too.
Review Current Suppliers
Small businesses are likely to receive their business supplies from a number of different suppliers. This can involve leaflets, paper, food as well as office furniture. It is always advised to shop around and look for the best offers that different suppliers can provide your business.
Some suppliers can negotiate on their rates so it is important to try and respectfully haggle them down. Furthermore, try to avoid signing any long term contacts with suppliers, as their rates and costs may not be as competitive in a few years to come.
