Cost cutting ideas for your small business
Here are 5 ideas to help you along the way…
Barter
Contrary to common belief barter is not an archaic way of doing business. It is in fact a good way to boost a small business while networking with other people, trading skills and products with each other without spending money.
For instance, a photographer looking for referrals took photos at a music school in return for free music lessons for his son and client referrals. A win-win situation both ways for the photographer, who got the opportunity to showcase his skills while his son got free music lessons and for the music school a savings on portfolio costs!
There are a number of ways to use barter to boost your business but that is a subject of another blog post.
Lease versus Buy
Investing in machinery and equipment when you are starting out or just finding your feet might prove to be an expensive proposition. Hiring or entering in to equipment leasing agreements is a better option. By demonstrating your ability to pay in time and in full you might be able to get lower price.
Smart Purchasing and Sourcing
When looking for suppliers or sources to buy from choose them well. Buying from businesses that are closing down or looking to reduce inventory is an option worth exploring.
An out of the box approach to buying inputs for your business like sourcing pieces of cloth from a tailor to create patchwork quilts and cushions is another way to source differently.
No Manufacturing Facilities
Opting for a structure that does not involve the establishment of your own manufacturing facilities is another smart way of cutting costs. Outsourcing manufacture to dispriviliged groups or institutions working for the upliftment of society is a good way of forging a social connection.
For instance working with women prisoners to create handcrafted goods is one way to do this. Alternatively getting physically challenged persons to make decorative boxes and candles is another way I have seen small businesses function without their own manufacturing facilities.
Free Online Presence
Setting up a website and a shopping cart is easy but expensive instead of this you could establish a free online presence on Facebook with a page to engage customers. Exploring options like afday.com, shopo.com, craftsvilla.com and of indianorigin is another way out. Otherwise using tools like blogger to set up a free blog is the best thing to do!
I hope you find these cost cutting measures useful! I’d love to hear your feedback!
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All 5 ideas are good and workable. Small businesses could follow and benefit.
Caution is required when using the barter system. Unless you want to evade & avoid tax, which will result in penalties, interest & even jail in most countries. Bartering your business goods and services is still income in the eyes of the tax man, still subject to local, state, federal taxes. Beware.
karthik,
Indeed – those are really helpful ideas shared by Mariam.
Amanda,
Thanks for the tips – just a question: Are there any exemptions for such barter?