If you own a small business, you know how important it is to maintain adequate capital. However, it is very easy to spend money that you don't have, which can result in financial distress down the road. Impulse buying can really take a toll on your company’s finances. For example, does it make sense to buy your employees new computers or laptops if the ones they are currently using work perfectly fine? Probably not, but business owners – just like consumers – often buy things based on emotion. Atlas Financial thought it would benefit our equipment financing blog readers to feature a post with tips on how to eliminate unnecessary spending.
Buy Only What You Need, Not What You Want Small business owners like to splurge on things like computers, tablets, gadgets and fancy employee lunches. But think of how they feel when they see their expense accounts each month. On top of that, the interest rates for business credit cards are rising each year. A smart business strategy is to keep a lid on discretionary spending and only buy what is absolutely necessary for your company and your employees. That way, you can end the year with a nice-looking bank account. Be a Smart Shopper When you own a small business, you will have a variety of expenses. Rent, office supplies, Internet service, electricity and payments to independent contractors can all add up. To save cash, shop around for the best deals and try negotiating for lower prices. You can shop online or at brick-and-mortar stores for some nice money-saving deals. Next, it won’t hurt to ask your vendors or suppliers for lower prices or special discounts. They want to keep their valued customers who pay their bills on time, so they might be flexible with their prices. Implement Online Marketing Initiatives Traditional marketing strategies such as print ads, direct mail, and local television and radio commercials can be quite expensive. To be effective, these efforts need to reach your target audience a number of times in order to create top-of-mind awareness. You can cut your marketing budget by implementing some of today’s most popular online strategies. Consider launching a mobile version of your website, running a targeted email campaign, and promoting your small business through social media applications. You can also join groups that focus on your particular business industry. This is a great way to promote your company and network with other business professionals. Finance Equipment To Save Working Capital The high cost of capital equipment such as machinery, furniture, computer hardware and business vehicles might have you considering a bank loan. In order to get a traditional loan approved, you have to have the right amount of collateral and a solid credit score. And once your loan is paid off, you might be stuck owning outdated equipment. This isn’t the case should you finance your capital equipment. You can return your equipment at the end of your lease term and acquire new, state-of-the-art equipment. Affordability is another advantage of equipment financing. There are several lease structures available, and you can choose a plan with monthly payments that fit within your budget. It all adds up to greater cash flow for your small business. Atlas Financial hopes you find these tips to be helpful, and that you succeed in your effort to eliminate unnecessary business spending. Should you ever need fast, easy financing for your small business, we can help.