Wednesday, 1st December 2021 | Small business financing Canada
Money-saving tips and ideas for small businesses
Every firm has to do thorough financial planning to cut losses and find ways to successfully save money. iCapital brings to you money-saving tips for small businesses.
A large number of small firms run on razor-thin profit margins. Balancing a small-business budget is akin to walking a tightrope: even the tiniest shift can cause tremors, and without careful planning, a general slump can spell disaster.
At iCapital, we can shed some light on ways to save money for your small business in Canada, whether you're planning for or reacting to changing circumstances.
There are two fundamental approaches for a corporation to increase earnings and boost cash flow. You can either raise revenue by increasing sales or lowering expenses to free up funds in your budget.
The first technique is certainly a primary goal for any company, but it is also somewhat beyond your control. You can't just will your company into making more money. There are activities and strategic decisions you can take to affect sales, but there are also a lot of indirect influences at play.
The second option is far more within your sphere of influence and control. Expenses can almost always be reduced, eliminated, or rearranged. Controlling expenses is critical to a company's profitability. As a result, budgeting is essential.
Here are some money-saving suggestions for your small business:
Get Sponsors for Events
Regular events, such as galas and seminars, can be significant draws for both existing and new clients, and many businesses rely on them to grow their customer base. Enlist the support of sponsors to help defray event costs in exchange for some advertising within the event. It's usually a better fit if the small business hosting the event and the sponsor paying for expenses are both in related sectors.
Negotiate With Vendors
What you've been paying your vendors in the past doesn’t have to dictate how much you'll pay them in the future. Vendors, like you, want to keep their businesses going. They, too, are struggling with a difficult economic situation. Rather than losing a valued customer, many businesses are willing to negotiate lower prices. You won't lose anything by giving it a shot, and you might be able to save hundreds of dollars on your monthly running costs.
Reduce Paper Consumption
While going completely paperless may not be feasible in your current situation, you can always save money by minimizing your paper usage.
Reduced paper usage equals fewer purchases, cheaper storage costs, and more efficiency. You'll never go back once you spend some time digitizing paper operations.
Save 10% Revenue in the Bank
As a small business, save 10% of revenue as cash in the bank account. The more risky the business, the higher this percentage should be. Having liquid assets available will allow you to make smart decisions and not reactive ones. If you’re still struggling with cash, we suggest you reach out to iCapital for small business loans which can help you with up to $250,000 in assistance within 48 hours. We understand the impact of fluctuations on business and are here to help small businesses thrive!
Regularly Revisit Your Budget
Your budget should not be static. While many businesses hold annual or quarterly budget meetings, the reality is that your budget should be managed and tweaked in real-time. While your overall business plan should be updated once a year, you should review your budget at least once a month and compare expected against actual spending.
Run Your Small Business in Canada With iCapital
iCapital can help you identify ways to decrease costs and save money in your small business through planning and some creative thinking. It is always beneficial to speak with other entrepreneurs and learn from their experiences about the best ways to save money.
If your business is struggling to keep pace in this economy or you wish to expand your business, hire more staff, or purchase inventory, iCapital can help you with easy loan financing options. Please feel free to contact iCapital at toll-free number (877) 251-7171.
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