Starting a business is a long journey with many bumps along the way. Some days will be great, but other times you will be struggling to decide upon the best course of action for your startup. One serious problem to be wary of is a low cash flow. You do not want to be stuck in a situation where you are having trouble making ends meet. Luckily, there are a few steps you should consider to cut costs and keep your business afloat to fight another day.
Move Factories Abroad – If you are manufacturing all your products in the U.S., you will pay a hefty amount just to get the product out the door. U.S. labor is much more expensive than in other parts of the world. Consider saving money by moving factories abroad where labor is cheaper. Oftentimes, you can get the exact same product manufactured at a fraction of the price.
Get Rid of Luxuries – Make one list of what is essential to your business and one list of what is a luxury. Tools such as fax machines and laptops are likely essential for your small business, but other items such as plush sofas in the waiting room or fancy equipment for the office might end up on the luxury list. Everybody loves having nice things, but starting a small business means forgoing these luxuries for the time being. Wait until your business is up on its feet more until you invest in luxuries. If you have superfluous items sitting around, sell them to get more cash flowing into your small business.
Save Money Wherever Possible – To make ends meet with your small business, you need to be frugal. This means saving money wherever possible, whether it be fewer catered lunches or printing double-sided. These costs may seem menial in the short-term, but over time, small costs add up. Next time you want to cater from the fancy restaurant nearby for your business meeting, consider selecting another small restaurant that can provide great food at a better value.
Combine Jobs – Sometimes, after all your cost-cutting changes to your firm, you are still making ends meet. One option is simply combining similar jobs. If two people are taking on the responsibilities that could be managed by one person, consolidate the tasks into one job. For example, the person in charge of your finances could also be given the responsibility of managing your company’s payroll. Make sure that the responsibilities are similar enough and not too overwhelming for one individual to handle.