the business ladder

(First published 14.05.10)

Saving money isn`t just about cutting costs. There are savings to be had from working smarter and challenging the ways that you currently do things to see if there is a more efficient or effective way that can bring true bottom line savings or net income growth.

Marketing reach is important and today`s entrepreneurs have a distinct advantage in that the power of the internet can be harnessed at relatively low cost to improve your reach and footprint. But that does not just mean a website - you have to invest a little in getting the design right and getting the search engines to find you. That means using a specialist design company to put your offering together. For as little as £3,000 you could have a fully integrated web offering with tremendous customer reach. How many mailshot`s or flyers can you get done for that little?

If you know your customers then you know what they read and where they look. If so, join newsgroups or blogs and join in! It costs only time but you have instant interactive contact with your prime customers.

You do not have to have the latest and best office equipment. Look to buy second hand where you can and save a small fortune in cash. Used office equipment that is disposed of by big businesses can still be in great condition and be up to 60% less than the equivalent new furniture. Likewise, a three or four year old PC will still be able to do the basic office processing and spreadsheets that you need and by plugging in a newer keyboard and screen it can look as fresh as new. Make sure to buy from established used dealers as these will be able to advise you on what is available, is still supported by guarantees and tell you what may be due in soon.

Do you have to have an office? Can you work from home? Why part with cash renting or buying an office when you could save that and use it to develop your business. Working from home is not for everyone but if you are small and flexible enough then working from home and renting meeting space now and again can make a huge difference to your business cashflow and profitability.

Now is not the time to give extended credit terms to customers. Most businesses go bust as the recession ends and they gear up for all the new orders. That means they are buying stock and making things but may have to wait 120 days before they get their money back. Keep a tight rein on debts and consider factoring as a means of improving cashflow and reducing credit risk.

Finally, when was the last time you looked at competitive tendering amongst your suppliers? Loyalty is a fine attribute but you need to make sure that you are getting the optimal deal for your business. Optimal means a combination of price, quality and service so do not necessarily go for the lowest quote unless it is backed by the quality and service that you need to earn money and make your business a success.

© Copyright 2010 The Business Ladder (UK) Limited

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