Tips to Save Money for Your Business. Many small businesses are managed with very thin margins, so any money-saving decisions can be very valuable. The slightest change that can cause a shake of financial stability, and without proper planning, can worsen business conditions. If you plan to make further plans after the pandemic-19, here are some methods of saving money for your small business, such as launching the Forbes page on Thursday (6/25/2020):
1. Re-Evaluate Everything
The current pandemic is the black swan which is the catalyst for change in every aspect of the business. Evaluate each issued, part of the costs incurred regularly, and ask yourself if it’s really necessary.
2. Set Aside 1 Percent Of Sales
There are cash saving strategies that you can apply. Start by setting aside 1 percent of the sales proceeds to a separate account, and increase that percentage every one or two weeks.
3. Negotiate With Vendors
When the economy is uncertain, vendors want to ensure that cash flow is maintained, so they don’t agree to negotiate a price lower than what the old customer wants.
Explain how you have also been affected, and how the economy is going, then negotiate. They will help you reach a fair agreement for the second party.
4. Save 10 Percent Of Annual Income In Cash
Small business owners must reach 10 percent of their total income at the bank at any time. The higher the risk for your business, the higher the percentage you need to set aside.
5. Manage Waste
When the business is going well, talk about small things that do not need to be considered, such as office supplies, rent unused assets, leftovers, and others.
Little things can really have added value. So focus on ways to reuse or recycle these items to get money.
6. Cut Office Costs
Most businesses do not use their office space at the moment, but offices need to wait, such as maintenance costs and other bills, including the internet and other services that are not used.
Although you might not be able to cancel this, you might be able to get a discount or stop service until later the office is used again.
7. Calculate ROI For The Biggest Use
Look at the top investments and calculate the benefits for each of your investments. Then do an evaluation by asking questions, do you need to make changes to ask for investment.
Over time, anything with a low return on investment (ROI) becomes a target to be evaluated or eliminated.
8. Add The Main Edition Stream
Every business can contribute ways to generate revenue outside of its core competencies. Look for additional ways for businesses to get additional cash flow or for cash.
9. Save A Minimum Of 5 Percent Every Month
By saving a minimum of 5 percent per month, it will allow you to repair the bearings that are needed most during this time.
Do this automatically, for example by asking the bank (if you keep money in a bank) to channel 5 percent of your accumulated income for 1 month, into a different account, so you will not forget.
10. Look At Accounts Payable And Accounts Receivable
The two most effective methods of counting cash are the first to increase the amount of your cash/accounts receivable. Extending loans and increasing invoicing will save you cash.
The second is the concept of barter, which is the transportation of goods and services without cash. Your vendor is in the same position and would welcome the ability to trade without cash.
11. Think Again About Advertising Strategies
Instead of spending six digits on traditional advertising channels, you can use local marketing strategies that rely on uploads through social media that can be passed on or shared for free, utilizing blogs and email marketing.
This will not only save you money in the short term but will also be useful for future efficiency, in contrast to conventional advertisements that produce value when they expire.
The tips above can be used to save expenses while the pandemic is still ongoing. About things that are unclear or you can ask directly with link Contact us. You can ask freely about business, permits, taxes, administration, and property.
source news : https://www.liputan6.com/bisnis/read/4287527/11-tips-save-money-create-your-business-tips
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