There’s no doubt that putting up a business is no easy task. Having to balance your life and business is quite challenging. When it comes to business people tend to look at the bigger procedure, what they don’t know is small changes can help a lot when it comes to savings.
Owners tend to miss out little but helpful details. Thus, the business banking team from the Redwood Credit’s Union has come up with tips for the business owners to maximize the positive cash flow.
Assess Purchase Trends and The Inventory
Products that are not selling will cost money, at the same time it is also costly to not have on hand the products that the customers want. Owners should analyze the inventory and purchase the trends regularly, with that owners can meet the demands without the trouble of surplus. Check all the historical sales figures, predicted growth, sales figures, and the economy to guide you in the process.
Do note that tracking the inventory needs patience as it can be tedious. But in this way, it can be effective and the savings add up. One effective practice is the 6-12-month rule. Example, if you have stocks that do not sell in the last six months to a year, it will probably be best to stop restocking them. You can have a special discount and promotions to sell it off. In that way, you can then swap it in an item that is more likely to be in demand.
Team-up with Like-Minded Businesses
It is advisable that you don’t get a partner that is a direct competitor. But it is useful to partner with a business that has the same supplies as you. You can consider combining purchases with the suppliers, in that way you can both have a benefit, especially in bulk buying.
It is a smart move if you purchase your supplies in bulk, even if you can’t partner with somebody who wants to share orders with you. According to Alana Rivers who is an RCU member, you could save money by purchasing raw materials and packaging in bulk.
She mentioned that in her business she uses this method and she saved money by buying the raw materials and packaging in bulk for her handcrafted skincare line. She was able to take advantage of these savings and decrease some expenses to boost her sales.
Evaluate Your Mailing List
Stop wasting money sending your marketing materials to people who are not likely to buy. You can start by going through your list and eliminating the ones that do not respond and those who you feel that are less viable prospects. One advises could be to work with a mailing list company to help you develop a list that is based on the characteristics of your target consumers (ex. Income level, age, gender). This approach will help you not only save money but to better tailor your message to your desired audience and with this, you can have a higher impact.
Article Source: North Bay Business Journal
Cover Image Source: Barrie Public Library
Article Illustration Source: Entrepreneur.com