Overspending or mismanaging you company’s funds can be some of the fastest ways to sink a growing business. New companies are at particular risk for budgetary mistakes. The odds are stacked against companies that are just starting out – in fact, the Office of Advocacy at the federal Small Business Administration notes that only fifty percent of new businesses survive their first five years. Companies can thrive through deluges and droughts by adhering to frugal business practices without sacrificing quality.
When it comes to running your business, avoid making impulse buys. Before you make a significant company purchase, ask for multiple invoices and shop around. Don’t settle on the first solution presented to your company. Spend time looking for the best deal you can get without cutting corners when it comes to necessities. Speak to vendors candidly about your anticipated growth, because you might be able to secure deals based on order quantity.
Does your company actually need to spend money at this time? You should invest a significant amount of research into the needs of your company before you decide to make a purchase. For example, instead of swapping out your current computer hardware, your company might just need software or system updates. Investigate your organization’s actual needs to avoid spending money on unnecessary solutions.
Sometimes it’s wise to be conservative with your time and spending. Don’t listen to vendors that try to rush you into purchases before you have time to weigh the business consequences. Be reluctant to spend budgets just because they exist – an emergency situation down the road could be alleviated by these funds. Patience can also be a great virtue during business to business transactions. Let vendors sweat it out and offer you lower prices by not accepting deals right away.
Double Check Bills
It’s possible that your company is already overpaying for services without being aware of it. Small clerical errors can incrementally add up to major business losses if they go unchecked. Audits for business needs such as telecom services help companies understand bills and take control over their budgets.
Are you ready to start thinking like a frugal business leader? Stop unnecessary expenditures by carefully planning upcoming purchases, researching spend alternatives, and auditing your organization’s services. Responsible financial decisions help companies live beyond the momentous five and ten year benchmarks. Here’s to your future company savings!