If we closely look at the reason behind failed small businesses one of the factors that you will find the most is ineffective expense management. Money is the most important part of any business and in order to make sure that your business survives the harsh and competitive market is to make sure that you use available resources in an organized manner. Small business owners must know how they are going to allocate the available capital in order to pay for different expenses. They must also figure out ways to cut the expenses to a minimum in order to increase the profit. 12th Door is an amazing tool that can help small business owners in managing all their expenses in an orderly manner. In this article, we will discuss different ways in which small business owners can keep an eye on their expenses and manage them.
1. Keep Separate Accounts:
One of the most important thing that small business owners need to realize is that they must keep their personal expenses separate from the expenses of the business. While this sounds easy it is often very difficult to implement it practically. To make sure that you are keeping these two expenses separate is to get two different bank accounts. Opening a separate account just for your business might seem like an extra expense on its own but it will greatly help you in the long term. A separate business account will also help you greatly with record keeping of the business. By keeping a separate business account, all of your transactions related to business will automatically be compiled at one place.
2. Keep a Record:
Keeping proper records and documentation related your business can save you from a lot of trouble. No matter how small the expense is if it is related to your business you must ask for a receipt and keep it in a separate file. Also, if your business is related to the sale of any particular item you must issue invoices to your customers and keep a copy for your own record. 12thDoor is one of the platforms that can help you in generating customized invoices for your customer. The benefit of using this system is that it automatically keeps a record of all the invoices that you issue.
3. Control Overhead Expenses:
Controlling and monitoring overhead expenses is another important step that many business owners fail to acknowledge. Overhead expenses can greatly reduce the efficiency of your overall business model by overburdening it. Small business owners often have a limited capital and they need to make sure that they are utilizing it in an effective way. Having a fancy office or aesthetically pleasing environment will only increase the overhead expenses and that won’t generate any revenue. By using energy efficient devices and utilizing all the space that is available to you, you can significantly reduce overhead expenses. Shared office space is also a nice concept for small businesses which can help in reducing these costs.
4. Choose Effective and Low-Cost Marketing Techniques:
Marketing is essential for any business to survive and thrive but choosing the correct marketing technique is often a daunting task especially when you have a limited budget. One of the best marketing technique for small businesses is the word of mouth. Your product should be able to advertise its self. The only way you can achieve this is by making your product so remarkably good that your customers end up recommending it to their friends and colleagues. Social media marketing is also a very effective tool for small businesses allowing them to do cheap and targeted marketing.
Image Copyright: pixelrobot / 123RF Stock Photo