As a busy business owner, it’s easy to get bogged down with the day-to-day responsibilities required to run a successful business.
However, the end of the year is a great time to take a step back and look at the big picture. Your business may be losing money and you might not realize it. We’ve listed 4 ways dollars might be flying out the window along with strategies to stop it.
Not Buying in Bulk
Small business can save a bundle when buying products and supplies in bulk. Bryan Tracey of the wildly popular skateboard manufacturer, SkateXS, recently shared his inventory buying experience.
“August is the time of year that we invest in inventory in higher quantities. Because we’re ordering more, we’re getting better prices and our dollar is going so much further with this additional money. We can actually make the money really work for us. As an example, skateboarding and stickers go hand-in-hand and we include them with every board purchase. I’ve always placed orders for just 1,000 stickers at a time. I can now buy 5,000 and it’s so much cheaper. I’d be crazy not to do that.”
If you don’t have the funds on hand to buy in bulk, look to low cost financing to help out. Tracey was able to increase his inventory purchases thanks to a $150,000 SBA working capital loan from SmartBiz. With 10-year terms, his payments are very low and he was able to successfully scale for the busy holiday season. SmartBiz has streamlined the application process so you get funds fast.
Making Payments on Expensive Debt
Do you have existing debt that’s crunching your cash flow? When starting up, many small business owners rely on funds like credit cards or daily payment loans with high interest rates and short-terms. An excellent way to increase your monthly income and pay down debt is to consolidate and even erase expensive obligations. Paying off high cost debt will help your business run better all year round. SmartBiz customer Milton Martinez is saving big time. “By getting rid of two small loans I’m saving $15,000 – $18,000 dollars. That’s money I can put back into growing my business or into savings.” With 10-year terms, consider an SBA debt consolidation loan with low monthly payments. SmartBiz has streamlined the process so you can have funds in your bank account as soon as 7 days after you complete your application. Visit the SmartBiz website and you’ll discover in about 5 minutes if you’re qualified for an SBA loan. We conduct a “soft pull” of credit so your scores won’t be impacted.
DIY Accounting/Tax Preparation
If you have a tight budget, it might be tempting to take on all of the accounting and tax preparation duties for your small business. With thousands of resources available online, it’s easier than ever before to DIY. However, keeping the books in order is complex. Hiring a financial professional is a smart investment that can save you time as well as thousands of dollars each year. A professional has the latest information on deductions you can get back when filing taxes and can potentially put in place money-saving processes. Look for a seasoned expert who has small business experience in your industry.
Your Business Lease
Have you been a good tenant? If so, explore renegotiating your business lease to save money. Commercial landlords don’t make money on vacant spaces and replacing a tenant can be an expensive hassle. Landlords may offer reduced rent just to keep you there.
Another consideration - do you really need a bricks and mortar location? With cloud computing and advanced technology, it’s possible to run a successful small business remotely. Telecommuting is a great perk for employees and could help you attract top talent. Additionally, morale is generally high when your team avoids a commute and has some flexibility.
If you do utilize an outside office, retail space or warehouse, consider purchasing the property that you occupy. A commercial real estate loan can help you save money on rent payments and build valuable equity. Explore a SmartBiz SBA commercial real estate loan. With low rates, a 25-year term, and no balloon payments, you can save a bundle and not hurt cash flow.
Have you discovered ways your business has lost money? Comment to share your experiences and solutions with other small business owners.
Do you need extra funds for your small business? An SBA loan is the best bet for small businesses with low rates, long terms and low monthly payments. Visit SmartBiz