MAKING YOUR MONEY STRETCH FURTHER IN BUSINESS

When it comes to making money in business, we’re often focused on pushing sales. While increasing customer numbers and orders can make a positive difference to the balance sheets, it’s also crucial to keep an eye on running costs. If you’re making a lot of money, but your expenditure is high, this will affect your profit margins. If you’re keen to make your money stretch further, here are some steps to take.

Negotiating With Suppliers

If you run a business that involves buying and selling or sourcing large quantities of the same products or materials, being able to negotiate is key. When you approach a supplier for the first time, they might have a fee in mind, but there’s usually room for manoeuvre. It’s worth shopping around to find the best deal and trying to secure a lower price once you’ve chosen a supplier.

Bulk buying should enable you to access lower unit prices, which will maximise your profits. If you’re a new business, proceed with caution and avoid over ordering stock. There’s no point in paying lower prices, but ending up with products you can’t sell.

Saving Money on Equipment, Tools and Machinery

The cost of buying machinery, equipment and tools can add up, especially if you’re a fledgling company trying to get off the ground.

Before you splash out, consider the option of hiring if you need equipment for a one-off job and make sure you’re dealing with retailers and businesses that specialise in selling to companies and traders like Tradefix Direct. Buying as a trader can open the door to lower charges and other perks, such as loyalty rewards.

In a day and age when technology plays an increasingly influential role in business, it can be tempting to invest in the latest gadgetry and innovations.

Technology can often provide incredible benefits for businesses, but make sure you can afford the investment and weigh up the pros and cons before you make any decisions.

Reducing the cost of running business premises

Whether you lease an office, a store or a warehouse, it may be possible to reduce running costs by exploring locations with cheaper rent and making an effort to lower expenses. If you don’t depend on footfall, for example, moving out of the city centre could save you a fortune.

It’s also beneficial to adopt ways of working that save energy and boost efficiency, for example, making sure lights are turned off when you don’t need them and swapping to LED bulbs. More and more companies are embracing green policies as a means of reducing waste, saving money and making a positive contribution to the planet.

Cost-effective Staffing

Wages usually constitute a substantial portion of business expenses. While you may be reliant on your employees, there may be changes you could make to the staffing structure to save money.

Outsourcing is often a more cost-effective means of securing skills you don’t already have on your team, and it might also be wise to consider offering temporary or short-term contracts if you’re a seasonal business.

Making money is vital when you manage a business. Pushing sales is one way to maximise profits, but it’s also beneficial to explore ways you can increase the margins by improving efficiency and reducing running costs.

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Making Your Money Stretch Further in Business