protect your finances while opening a business

Business Strategies To Help Manage How Much You Spend

by Daniel Herrera

Running a small business includes being faced with recurring bills that can be unexpectedly expensive. If your first year in business didn't produce the profit amount that you initially planned on, make some changes in the manner in which you advertise or target potential clients.

Alternate Advertising Methods

Mailing flyers and coupons to your targeted audience may not result in you receiving enough responses to make your efforts worthwhile. Instead of spending extra on postage, condense your mailings and send advertisements with correspondence that is already going to be mailed out.

For example, instead of relying heavily on mailing lists to attempt to gain new clients, stick to your current clients and specialized business owners. When you send an invoice, product shipment, or receipt to someone who has done business with you, tuck a flyer and coupons into the shipment.

If you would like to acquire more customers who are likely to be in need of your services or products, research companies that are on your mailing list and send advertisement materials only to the people who you are certain could benefit from doing business with you. Limit the advertisement mailings to a couple of times each year and prepare printed advertising products that are representative of the time of year and the current products and services that are being promoted.

Group Efforts

If your business is located near other small businesses, holding a tent sale or investing in group advertising will help you manage the amount that you spend and can increase your profits. Speak to the other business owners and ask them about outside sales tactics that they have been using to gain new clients.

A tent sale that is held on property that includes your business lot and other owners' land will allow you to take part in a large sale that may attract a lot of people. Splitting the costs for canopies, tables, and advertising materials may not cut into your business expense account too much. Build up a fund that can be used solely for outside business efforts, including special sales and onsite advertising.

Seek ways to cut back on the cost of the goods that you will be selling, by purchasing generic materials and by purchasing raw goods in bulk. When you purchase cheaper materials in larger quantities than you are accustomed to, you may be able to save a considerable amount of money and will also be able to keep up with the demand for specific products. Contact someone in your area for information on business spending management.