[This article was written by Rachelle Wilber.]
Running a successful business is all about maximizing revenue while limiting costs. As you can imagine, this is the formula that makes for the greatest profits. While revenue depends on all sorts of market forces, costs are something that, to a certain extent, you can directly control. As a business owner, it’s your job to minimize expenses as much as you can without sacrificing the quality of your products and services. Here’s how you can make those dollars stretch.
Focus Your Marketing Efforts on the Internet
Print, radio, and television advertising can certainly work, but it’s often expensive. In order to keep your marketing budget to a minimum, consider focusing on social media and digital marketing campaigns. These types of advertising are much cheaper, allowing you to reach consumers without breaking the bank.
Mix and Match Suppliers
If you’re operating a retail business, then you likely have a number of wholesalers who you could potentially work with. Instead of placing all your orders with a single supplier, do some research and determine which company has the best price for each individual item. Then, you can place orders with multiple companies to take advantage of their distinct prices.
Streamline Your Business and Stick to What Works
Many businesses bankrupt themselves by getting too big, too fast. It’s natural to want to grow your business, but you need to be careful not to get ahead of yourself. If you’re a sporting goods store, for example, you should stick with basic supplies for a few popular sports until you’ve built a large customer base. If you start branching out into all sorts of different areas, you’re likely to overextend yourself. You’ll be buying merchandise you never end up selling, thereby wasting capital and increasing your costs.
Business Checking Accounts
Any serious business should have its own business checking account. This is the account you’ll use for all transactions related to the company. If you don’t have such an account, it will be extremely difficult to keep track of all your purchases. What’s more, suppliers won’t take you seriously. Getting a business checking account is a simple way to show your commitment to the company.
While businesses require considerable investment, they also demand a frugal mindset. By stretching your dollars in the ways mentioned above, you’ll make it easier to turn a profit.
Rachelle Wilber is a freelance writer living in the San Diego, California area. She graduated from San Diego State University with her Bachelor’s Degree in Journalism and Media Studies. She tries to find an interest in all topics and themes, which prompts her writing. When she isn’t on her porch writing in the sun, you can find her shopping, at the beach, or at the gym. Follow her on Twitter and Facebook: @RachelleWilber; https://www.facebook.com/profile.php?id=100009221637700