Small businesses always have to keep a tight rein on expenses. Hence, many entrepreneurs take on multiple roles just to cut down on hiring costs.
However, multitasking can only do so much and isn’t sustainable at all. There are smarter ways to manage expenses without burning yourself out in the process.
For instance, check out these eight insights from the Forbes Finance Council that can help SMEs and budding entrepreneurs make their dollars go farther:
Outsource Key Functions
Many entrepreneurs do everything themselves to save money.
However, experts actually recommend that small businesses delegate tasks to experts in different areas. This doesn’t mean hiring many full-time employees either.
By outsourcing key functions like accounting, HR, and legal, you can leave tedious matters to more qualified people – while avoiding costly errors or rookie mistakes.
Track Spending
Always track where your money is going. How else can you determine if your investments are worth it?
Looking at your numbers will also help you identify which expenses you need to cut down. For instance, is your digital marketing campaign really working? If it’s not converting, perhaps it’s time to recalibrate your strategy.
Reexamine Payroll
Are you still doing your payroll manually? If yes, chances are you’re wasting time on tedious payroll-related tasks. And time is money.
Why not invest in an automated payroll system? Its efficiency won’t just save you time, but also prevent costly or inconvenient errors.
Review Expenses and Contracts
Look at your biggest expenses and contracts. Are there opportunities for cutbacks?
If possible, shop around for a more affordable yet competent alternative.
Restructure Salary and Compensation Packages
No, this doesn’t mean pulling the plug on competitive salary packages.
Rather, try to review your current compensation plans and see if you can make certain adjustments. For example, rather than implementing a wage increase, would a generous one-time bonus suffice?
Get a Better Handle On Your Company’s Finances
You don’t have to be an expert, but you should at least know how to read your company’s financial statements.
This way, you’ll always know your company’s financial situation and the direction it’s going – even if you’re not necessarily generating the reports yourself.
Monitor Your Online Ads
Online advertising has become an indispensable part of business for many SME’s.
However, these only bring in returns if managed and optimised properly. Otherwise, they’re just another money drain.
If you don’t have the time to monitor your online ads and social media presence, you can always delegate this task to a social media manager.
Prioritise Inbound Marketing
Many small businesses aggressively invest in cold calls, product demos, and other outbound marketing strategies. While these can work, they can also be expensive in the long run. Hence, experts suggest focusing on inbound marketing instead if you’re in a pinch.
How? You can start with creating content that educates and empowers your audience. If you nurture your audience carefully over time (and with the help of a good content writer and social media manager), they could very well be the ones to reach out and buy from you.
There’s no one-size-fits-all approach to managing a small business. However, regardless of what industry you’re in, one thing is certain: knowing how to manage your expenses is critical to success.
Looking to outsource certain tasks and make the most out of your hiring budget? We got you!
Remote Staff has been helping Australian SMEs and entrepreneurs grow their businesses with the assistance of skilled remote workers from the Philippines for the last 15 years and counting. Whatever your budget, we can help you do the same.
Call us today or schedule a call back and let’s get started.
