16 Tips to Raise Capital and Reduce Costs For Your Growing Business
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As a small business, you will constantly be looking for ways to reduce the ever increasing costs it takes to keep your company up and running. Whilst advancing further in your entrepreneurial journey, you may also be looking to raise more capital so that you can grow and scale your business. In the current climate it can be quite an overwhelming task for small business owners to navigate these financial hurdles and continue to turn ideas into reality.
Staying afloat isn’t as simple as it used to be, especially with costs rising in every area of the economy. Whether you’re trying to figure out how to use your profits wisely or you’re thinking about raising some extra capital to invest in your business, you need to work out what is going to be the best method for your business. Many entrepreneurs will start to explore the more traditional cost saving methods such as reducing their spends and cutting down on the use of overheads. Although these can be very useful, sometimes you need to think outside the box and adapt to a new way of running your business. Ultimately, you need to find a way to reduce your spending and increase your capital without compromising the overall operations of your business.
The following sixteen tips will not only help you to boost your finances, but it will also help you to improve the day to day running of your business so that you always have enough money to keep investing in your company.
Reassess Your Personal Finances
One of the first things you can do when it comes to raising some extra capital for your business is to take a look at your own personal finances. Although you may not want to get both your personal and professional finances entangled, one situation can have a knock on effect on the other. For example, you may be paying off personal debts which are adding up to your monthly outgoings - can you find a way to reduce these expenses and free yourself from unnecessary subscriptions and payments? Hopefully, you will be able to reassess your current personal finances so that you are in a more comfortable situation going forward. When your personal finances are in order, you will start to notice that everything else regarding your business soon begins to fall into place too.
Get Rid Of Unwanted Your Timeshare
Unfortunately many families are misled into owning a property such as a timeshare at some point in their lives. This can be a very distressing situation to be in when you’re tied into a mortgage you don’t want anymore. This money could be used towards savings for your children, or you could be using it to reinvest into your family business. If this sounds like a familiar scenario, you may want to look into ways to eliminate this type of mortgage debt and cut yourself free from your timeshare ties once and for all. You can take a look at reviews from a financial company who have experience with these cases here, TrustPilot reviews wesleyfinancialgroup.com. As you can see, there are over 3,000 reviews from satisfied customers who have been through Wesley’s one of a kind process, and have ended their relationships with timeshare companies. There is no risk involved with this unique qualification process too; if they can’t help you get out of your timeshare you won’t need to pay anything at all. So, if you’re hoping to get out of your timeshare forever and free yourself from unnecessary debt, this is certainly an option for you to explore.
Consider a Business Loan
Taking out a business loan is very common when it comes to growing your business and trying to raise more capital. However, it isn’t as easy as you might think to get a business loan; you need to get all of your finances in order and be able to prove your income and business profits. One of the first things you may need to present in your profit and loss statement and a cash flow statement. Any lender will want to know whether you’re able to cover your expenses and where you’re going to get the money from to pay off your loan. In your loan proposal you will also need to give a detailed business plan so that they can see evidence of how you’re going to use the money to invest in your company. There are professionals who can guide you through this process so that you have everything you need in order to get the business loan you’re hoping for.
Look Out For Investors
Depending on the type of business you’re running and the industry you’re working in, you may find that there are angel investors out there who are willing to give you some up front capital. This of course, would be ideal in theory, but there can be some strings attached. Before agreeing to any sort of investor, you need to clearly lay out their stakes in the company using legal paperwork. Getting a lawyer involved anytime you join with a partner or bring a new investor on board will help you to cover your bases.
Saving Money Within Your Business
Above are a handful of methods to help you raise some extra capital for your business quite quickly, but what are the long term strategies you can adopt in order to save money? Here are some conventional and unconventional methods that may help you to boost your business savings by reducing in-house costs altogether.
See If You Can Agree Discounts and Negotiate With Vendors
When a vendor provides you with a set price to buy stock or materials, you need to do your best to find a good price. Whether you’re requesting a discount or looking for a vendor who offers more competitive pricing, you can negotiate and save yourself a tonne of money in the long run. Discounts and negotiations will help to increase your bottom line and it will also give you a new skill to work on! So many business owners simply accept the terms and prices given to them by their suppliers, so it’s a good idea to see what else they can do for you.
Get Creative With Saving
Saving money as a business owner is much more than cutting back on spending; sometimes you just need to get a little creative. If your industry allows you to make money or save in an innovative way, then this should definitely be explored as quickly as possible.
Refine Your Business Process and Seek Out Solutions to Problems
Your business processes could be costing you a fortune if you don’t spend time refining them. The first thing you need to do is make a note of your existing processes and see how they can be refined. This will not only help you to reduce costs, but it may also provide you with a workable solution to your problem. Instead of thinking of instant fixes, it’s much more productive to dig deeper into your processes and assess how you can make much-needed improvements to the way you run your business.
Reconsider Your Suppliers
If your suppliers aren’t willing to negotiate a good price for you, it is possible to simply go elsewhere. Provided you are asking for a reasonable deal, there is nothing stopping you from shopping around for something that will save money for your company.
Pinpoint Unnecessary Expenses and Cut Down
Your business is probably bursting with unnecessary costs and expenses that are pulling down your profits. During these tough times it’s vital to take a step back and review all of your costs in detail. Not only will this help you to identify what’s necessary to remove, but it will also open your eyes to what’s going on in the modern world of business.
Make the most of Online Marketing
Right now is the best time to make the most of online marketing and digital lead generation. Not only is it extremely cost effective, but it can also help you to reach a wider audience too. Working on your email campaigns and honing in on search engine optimization is bound to bring fruitful results to your company whilst reducing your spending.
Check Your Technology Costs
Technology is a vital component of running a business in this day and age, but it is very easy to become a little too overrun with smart options. Run a thorough check of your technology costs and get rid of any cloud based products or software items that are redundant to your company.
Reduce Wasted Time as Much as Possible
Wasted time is a huge cost to many businesses, no matter how large or small they are. Take a look at every single manual process that you use in your company, and see how you can maximize on time as much as possible. When your workforce can get more done in a short space of time, this helps you to cut down on wasted time.
Create a More Energy Efficient Office Environment
An economic office space is a must-have if you’re hoping to reduce your impact on the environment and cut down on costs. Many eco-friendly options are actually much cheaper to run, such as LED lighting in an office.
Do Your Research With Regards to Materials and Produce
Depending on the type of industry you’re working in, you may be able to swap out certain materials for a cheaper and more sustainable product. Spend some time doing your research and use the best possible products to reduce your costs.
Outsource Tasks if You Need To
Although outsourcing may cost some money to your company, it also frees up a lot of time too. Hiring specialist companies to run your customer service or HR department means that you have more time and energy to focus on growing your business effectively.
Take Home Message
All in all, there will always be continual improvements to make when it comes to improving your business finances. Whether you’re hoping to take your business to the next level or you’re looking to cut costs on a day to day basis, all of these methods will help you to create more capital. Hopefully, you have enough information to explore the best possible options for your business. Some of these solutions will be more suited to your business type than others, so take your time to explore loan options, cost cutting solutions and personal finances adjustments. You will instinctively know the best ways to bring more money into your business; over time you will start to see notable results so that your business always has a healthy flow of cash ready to be reinvested.