Scaling Back to Save Money During Tough Economic Times
Whether the economy is in dire straits or you're simply experiencing a slow season, you might need to find ways to scale back your business expenses in order to keep your wholesale beading supply or jewelry business afloat. While it can be intimidating to restructure your finances in an effort to stay open, tackling the issue as soon as possible can help you better manage your company in the future.
If you're at a loss as to how to reboot your financial situation, you might want to think of areas where you can cut back in an effort to save money each month. Brainstorm small ideas--reducing your expenses doesn't necessarily have to mean getting rid of your commercial space in order to save hundreds of dollars monthly. Instead, reconsidering small costs such as your phone bill or Internet service provider can add up to big savings over time.
Refining your purchasing tactics can also help you save money and reduce your regular expenses. This means considering used items rather than buying everything new, as well as trading in things that you no longer need.
If you have never faced this type of financial difficulty before but aren't ready to allow your beading business to sink, there are a couple of things you can do in order to revive your company and maintain its reputation.
Buy used and don't be afraid to be frugal. Entrepreneur.com reports that if you're facing tough times financially, there's no sense in having pride, especially if you can get what you need at a lower price without skimping on the quality. One way to keep your business operating smoothly is to look for used items when you need them, rather than opting for the new.
If you need a new computer or cash register, for example, look for a refurbished or used item to save money on the costs. Depending on the product, this can be an ideal way to save hundreds of dollars monthly.
Another option to maintain your cash reserve is to lease equipment rather than buy it. On occasion, you might need an item to help you cover an unexpected growth in business. Instead of splurging on a piece of equipment that you will only use once or twice, lease it. Borrowing is also a good idea when it comes to technology, which can quickly become dated. Many retailers lease items such as registers or laptops for business purposes.
Be smart about hiring. If you're currently going through financial difficulty, this is not the time to hire individuals. The policy to have during this instance is to hire only when necessary. For example, if you have a marketing position to fill immediately, do so, but don't hire more people than you need. Staff members not only require a salary but may also need employee benefits such as insurance. This can translate into a large expense over an extended period of time.
Buy supplies in bulk. SmallBizTrends.com reports that one way you can save around the office, whether you work at home or have a store front, is to purchase everything you need in bulk. This means buying everything from copy paper to pens at wholesale price. Although it might seem like a large amount of money to spend all at once, doing so can save you cash over time. Furthermore, you'll have a full supply closet for an extended period of time.
Become a negotiator. Because you will need to put your pride aside in order to keep your beading business afloat during tough economic times, you have a great opportunity to work on your negotiating skills in order to save a few bucks here and there. Don't limit yourself to haggling with only your business partners--use your negotiating tactics when talking to distributors and suppliers as well. You will be surprised at how many people are willing to give you a quick discount, especially if you develop a reputation for being able to make good on your promises to pay people back.
Cut corners wherever possible. When thinking of ways to save your company money, remember to think small. InsideCRM.com reports that one of the biggest ways you can maintain your cash reserve is by making a few slight changes, is to go green. Using recycled goods and recycling your own supplies can save you money over time.
Other ways to reduce your monthly expenses include switching to a smaller Internet service provider or phone service. If it's not necessary, get rid of it and down size--having this frame of mind can help you live more frugally and save money whenever possible.