In today's economy, when consumers hear that a merchant is cutting costs, they immediately think the business is failing. Actually, this can be a sign of a healthy business with an owner trying to reduce overhead while continuing to grow. Here are some suggestions for merchants who want to be proactive about expanding their business.
Consider working with new vendors. As a business owner, you should constantly evaluate your vendor relationships to ensure you receive a good deal. If you want to cut wasteful spending, try looking around for vendors who offer the same supplies at a discount. Also, reduce costs with your current vendor by renegotiating your contract to see if they match a competitor's lower pricing.
Use more effective marketing methods. Have you analyzed your marketing strategy lately? Is it driving new sales, or are you simply throwing money away on campaigns that fail to deliver? Every time you invest in advertising, you should set clear expectations for your return on investment (ROI). If your advertisers are not delivering, consider different and less expensive types of campaigns or consider working with other companies.
Schedule your payments for maximum efficiency. You might think paying your bills early is the responsible decision. However, Entrepreneur suggests that you are leaving money on the table when you do this. Unless you receive discounts for early payment, you should hold onto your money in an account that receives interest and then pay your bills when they are due, no sooner. Alternatively, you can negotiate with your lenders to give you a discount if you pay early. In this scenario, you would benefit from paying your bills before they are due.
Use outsourcing effectively. Instead of hiring new staff members for roles that are small in scope, consider outsourcing. Today, there is a robust freelance market of graphic designers, writers, and advertisers for hire as you need them. You can also outsource functions such as accounting, human resources, and more. Consider whether you would benefit from outsourcing before onboarding another employee.
Save money on your credit cards and bank accounts. Business credit cards and bank accounts offer attractive rates and benefits for business owners. These perks may include cash back, airline miles, reduced interest rates, and rewards for maintaining a balance or meeting spending criteria. Smart business owners should regularly evaluate whether they have the best deals on their accounts and be willing to change things up if they can save money by moving their accounts to another company.
Get creative and learn from other businesses. The strategies above are only a few ways businesses can save money by cutting expenses. Collaborating with other companies through the BBB or local chamber is a great way to learn what they are doing to reduce their overhead. You can implement some of their strategies if they fit your business well.
Seek out new ways to raise capital. With traditional bank loans becoming more challenging to secure, it may be time to consider some alternatives. Business.com suggests crowdfunding, a public way to seek financing from those supporting your business. Another option is a Merchant Cash Advance (MCA), a quick and easy alternative that is not a loan but rather a purchase of a portion of your future credit card sales. With an MCA, a merchant can be approved and receive cash in days, not months and have a flexible, not fixed, repayment plan.
For nearly two decades, Quikstone Capital Solutions has been proud to be recognized with an A+ rating from the Better Business Bureau. To our company, displaying the BBB's seal on our website means we are committed to fair and ethical business standards. We value the trust our merchants place in us when they seek funding to run and grow their businesses.
If you need a merchant cash advance to buy equipment, expand or remodel, increase inventory, or other business expenses, contact us to learn more about Quikstone and our commitment to your success.
Download our guide for more tips to grow your business!
