It’s All In The Cost: Balancing Your Business Books
Let’s be clear about one thing: running a business is not all plain sailing, sharp suits and business meetings.
There is a lot to keeping your business afloat and making sure it is successful. Which is why only a small fraction of start up business actually make it beyond the first year. However, if you want to ensure your business thrives, where should be your looking to make an impact? Often the answer lies in your costs and spending versus what is coming into your business from generated sales. At this time of year especially, many entrepreneurs are looking at their business performance and making some key changes for the following year to improve on previous successes. We thought we would share with you some of the ways you can make changes with your business costs.
Taking your business online only
Having a retail premises or shop where you do business could mean you have a hefty chunk of overheads that get costed into your business each month and year. So it could be a good idea to look at whether or not this particular option makes good business sense to continue. So many people now take their shopping online. Whether that be clothes, food items or general bits and pieces, if someone wants something they often look to the internet in order to get it, rather than heading to a shop. So it could make perfect sense to take your business online and lose that retail premises. Of course, this doesn’t suit everyone. But it could certainly be worthwhile looking at the option.
Outsourcing specific departments and needs
There are some areas of your business that might not need someone employed to do it 12 months of the year. Things like social media strategy and digital marketing can be outsourced, as well as considering reliable IT support business from outside sources. Often these businesses specialise in being flexible and offering you what you want when you need it, which could help you to reduce your overheads and costs while still maximising your profits.
Modernise your marketing strategy
Marketing used to be all about the flyers landing on your doorstep, and even what people might say about you locally, and while those methods are still valuable it might be worth looking at modernising your marketing strategy for the future. We are all avid users of social media these days, and at least 70% of people check their Facebook feeds at least once a day. Capitalising on more modern trends and ways of advertising could help to increase sales into your business without necessarily increasing your marketing budgets and costs. It is certainly worth a look.
Keeping an eye on your stock levels
Finally, keeping an eye on your stock levels could be vital for the new year. While it is essential to have a good level of stock behind you to meet demands, you also need to take time to analyse the market so you have the right level of stock. Holding too much could be costing your business.
We hope some of these options help you to look at things differently in the new year. Good luck!