Overhead is the reality of every business, small and large, from the first day that you open the doors. There are many ways to save on overhead and you must look at each area of expenditures in order to find where you can save money on costs that could go to your bottom line profits. Fixed expenses, like rent, utilities, and supplies will not change a lot from month to month but other expenses can be lessened if you know where to look and how to budget them.
1. Have a Business Plan
One main key to successful enterprises is a solid business plan with a forecasted budget. Having a general idea of monthly overhead costs in every category of your business will give you benchmarks. You may not meet your goals or you may exceed your goals but first you need a baseline against which to measure. Every area of your business can increase or decrease your overhead and being aware of these many facets will help with your success.
2. Credit Cards that Work for You
a. When making cash or recurring purchases, if at all possible, put them on a credit card that gives you cash back or rewards points. The cash back is income to your business and the rewards are indirect income for use on flights, hotels or other perks. You can also use credit cards to transfer from a high interest rate to a 0% introductory rate to save on interest also.
b. Most businesses accept credit cards as a form of payment. The rate you have may not be the most competitive since many new busineses get categoriezed as high risk merchant accounts. In addition, some high risk industries like the adult, collection, e-cig and vaporizer niches have high rates across the board initially and even if they are established. Get competing quotes from companies like Painless Processing who can many times beat most rates and fees.
3. Smart Hiring Practices
Not every business has the luxury of a Human Resource specialist but even a small business can use smart hiring practices to get the very best employees to staff their businesses. High employee turnover can be a disincentive to morale if unchecked and is costly. Training new employees takes time and their mistakes can cost money but hiring the right person to begin with will be better for your business and your bottom line.
4. Budget your Marketing
Marketing your business is important and ineffective marketing practices like interruption marketing don’t work anymore increasing your cost per acquisition. Maximize your marketing budget by learning more about Inbound Marketing, which has the highest rate of return for marketing campaigns.
5. Customer Service
Service that is customer focused and attends the needs of your clientele will garner continued business and customers who will market your business through word of mouth. Referral business has the highest close rates, more than Inbound marketing. Do good work, sell a quality product and provide excellent support and the sales will follow.
6. Equipment Costs
Whether you buy or lease equipment depends on many factors. The type of business you operate, the type of equipment you need and the initial cost of the equipment are all factors when considering equipment. If you are operating on a shoestring and don’t have the necessary cash for a new piece of important equipment, a lease can be the perfect solution to your operational issue. Most leases include repair and maintenance of the leased equipment, saving you from unexpected expenditures.
Keep these 6 key principles in mind and you’ll be able to weather out the lows and actually grow your company. The points outlined will lead to increased sales and growth. To find out more about how you can lower your rates for your payment processing, contact Painless today.