It can be exciting to be in business when you have an ample amount of resources to support you. However, as an entrepreneur, it is prudent to always be wise in your decisions as every little bit counts when you are spending not just your money but your time and effort on a variety of things day in and day out.
Your resources are also limited, so there should be a system that guides you as you inevitably have to spend on your operational needs. Here are some things to keep in mind as you manage your working capital and control the outflow of your funds:
1. Give free product or service as marketing
One way to save on marketing costs is to give freebies to your potential market. Don’t scrimp on giving a free taste of your product or service to those who are interested – it is a good way to test your offering, get feedback on it, and have some material to work on for improvement. This is cost efficient because you will be optimizing the inventory or equipment and supplies that are already available to you anyway, instead of shelling out money on other kinds of promotions.
This is a great organic way of getting the word out about you as well – your product being out there, or your service attending to the needs of your clientele are ways to get talked about and create buzz around what you sell.
2. Work with consultants for expert knowledge
If there are technical concerns you are not that proficient at yet, don’t hesitate to invest in consultants or people who already have a good base of experience in the industry you are in. There are consultants for all kinds of businesses no matter how specialized your interests are! For trucking services, for example, there are those who can give you advice on freight brokers and dispatchers on tafs.com. There are a lot more experts who are willing to give advice and help the more novice businessmen.
3. Outsource relevant HR
If there is work that can be done periodically, and you don’t have to hire permanent employees, then you can outsource these practitioners as well. You can subcontract everything from your marketing, to your accounting, to your manufacturing. This helps you be more efficient with the contracts that you keep and the retainers you need to pay.
4. Work with the resources that you have
There is no reason not to work with the resources that are already available to you. Old office equipment that is still working, vehicles that can still take you efficiently from point A to point B, and furniture in your store or retail channel can all be used without you buying brand new ones. Exhaust the pieces you already have before going on a shopping spree for buying new equipment, machines, or supplies.
These tips may all seem simple, but when added up, make for great savings on your end. Pragmatism is the name of the game in managing your working capital. Make sure you always keep this in mind when you have to make investment decisions as you run and operate your business.