As a small business owner, every naira you spend is very important even to the smallest Kobo. When you’re making so many sales, it’s important to stretch every dime in case of an unexpected slump or any surprise expenses just like the unexpected Covid19 crisis. One vital way to make your business successful is lowering costs at any given opportunity, this is as important as driving sales. Without a combination of both, you will probably run into debt sooner than you think. As bills pile up, I know it can seem overwhelming to try to save money at the same time, but with these 4 tips and tricks below, you’ll have no trouble at all.
This period other small businesses in your area are looking for ways to cut costs, you can team up with them so you can both save some money. If you have a small shop or kiosk and you need your drinks to be cold, you can partner with the next kiosk and share the cost of fuel for the generator. Also, you can share suppliers and distribution channels. This is one great way to collaborate and save up.
You can also discuss with other growing businesses that are in the same position you are in (trying to save cost) about the need for trade by barter. When you are in need of a service, always try to barter before offering to pay—you may not always succeed, but there’s no harm in trying!
With this crisis, what you have been paying your vendors can change, there shouldn’t be a final word on what you continue paying. Ultimately, vendors want to stay in business too, and they’re dealing with the tough economy just as you are. Many are often willing to negotiate lower prices rather than lose a regular customer. You certainly won’t lose anything by trying, and you may find yourself able to shave several thousand off your monthly operating costs.
Since every company is now practicing remote work because of the lockdown, it is best you consider what is needed in the office. All ongoing maintenance costs which you know you do not need currently in the office should be cut down as much as possible. By prioritizing, you can save money without reducing maintenance rate or necessary service items completely.
Some companies have annual or quarterly budget meetings but the reality is that you should be managing and tweaking your budget in real-time. At every chance, you get, try to adjust your budget, especially this lockdown, where the office space is not in use. For now, you should reduce the cost of facilities in the office. Your budget shouldn’t be stagnant. By staying on top of it, you reduce the risk of falling behind and finding yourself in a situation where you have to dig and claw your way out.