It’s a constant point of discussion — what can small businesses to do to remain even remotely competitive with corporate giants? They’ve got the “local” thing going for them, which, lucky for them, is quite trendy right now. But unfortunately, the effects of the recession have put small businesses at a huge disadvantage — yes, even now, five years later.
But small business owners aren’t giving up that easy.
Desperate times call for desperate measures, and being in a pinch to cut costs has brought out the creative side of some of these entrepreneurs. If you’re looking for ways to reduce the overhead for your small business in order to maintain your competitive position in the local business landscape, read on – here are some unexpected ways you can save money.
Got a Problem? Become your Own Lobbyist
Right off the bat, this doesn’t sound like a “money-saving” tactic so much as a “time-wasting” tactic, but hear us out. Did you happen to hear about the Salt Lake City bakery owner who was threatened by a city inspector to have her business shut down unless she installed a $40,000 grease trap in the street? She didn’t take that one lying down — instead, she acted as her own lobbyist, went to city hall, and proposed the alternative: installing a much less expensive grease trap in her kitchen and giving the city access to monitor it.
The moral of the story here is that small businesses can’t afford a lot of the extravagant measures that corporations take, but there are equally effective alternatives that they can afford. City Hall won’t be entirely unsympathetic, but learning to be your own lobbyist is financially beneficial.
Implement Quicker Invoice Turnaround
Most businesses operate by giving their clients either 30 or 60 days to pay invoices, but you can make your own rules on this one. The longer your payment term, the higher your borrowed costs are going to be, which can really set you back, especially if your business is just getting off the ground. Changing your billing turnaround period to 15 days has been proven to make a substantial improvement in cash flow, and it’s really something to consider.
Check Out Transportation Management
Of the many services that you can potentially outsource, transportation management is one of the most beneficial. Transportation management systems offer small businesses the opportunity to efficiently track their shipments, so that nothing gets lost on the way to the storefront and, more importantly, nothing gets lost on the way to the customer — thus, they remain satisfied. It also helps to find the most efficient route for company transportation, which saves on gas and time, eventually paying off immensely. Perhaps most importantly is the fact that you can ensure your drivers are working to their maximum potential and take action if they are not.
Bear in mind: when outsourcing any project, it’s always a good idea to master the art of negotiating.
Take Advantage of Free Advertising
As you already know, advertising is an expensive endeavor that doesn’t always pay off. Sometimes, when you’re trying to spread the word, you have to get creative to get the benefits without all the expenses. One way to go about it is to go through the phone book, find your competitors’ names, and check their websites. You’ll be surprised to find that many are no longer in operation — then all you have to do is register those domain names and have them forward to your site. It’s easy, and you’ll get all the business of those former competitors.
You could also offer to write a guest blog, using your expertise, for a highly-ranked blog; partner up with another local business and promote one another on social media; and offer a discount when customers ‘Like’ your page on Facebook. It takes a tiny bit more work, but is worth it more often than not.
About the Author: Sarah V. Kay is a contributor to a number of business and finance blogs and publications around the web.
Photo credit: Images Money
