Effective Money Management Tips for SMEs

A successful business doesn't just require a good business idea but it also needs to have efficient money management skills. This is especially important for small and medium size enterprises as they require constant growth in this vast corporate world. Knowing something and doing something are two different things, therefore you must always remember that the key to success lies in your hand which is only effective with money management in business.

So the first question to ask yourself is ‘Where do you start from’? In case you find yourself confused and run out of solutions, the best option is to consult professional guidance. At Bizcostsavers B2B Marketplace, our goal is to help all SMEs construct and adapt efficient solutions to reduce your costs and manage your funds well through our online business listings, community forums and resource materials. Here are a few pointers which can help you start:

Reduce Labour Costs

One of the biggest costs you will incur is undoubtedly related to labor. Instead go for alternative solutions such as outsourcing and hiring interns. When you outsource you avoid paying as much as you would to a full time employee. When you outsource, you employ a person for a short term project for limited pay. This will also allow you to obtain specialized services from the person you outsource the job to. The other option which is hiring interns can be very beneficial too. Interns require experience while you just need to get the work done therefore there is no cost included in this equation.

Shared Offices

Infrastructure can be very expensive for small and medium size businesses, which have tight budgets. With shared offices you can enjoy the benefits of shared rent, networking and obtaining potential clients or investors. In terms of cost you will be sharing it with other offices and enjoying all amenities such as conference rooms and cubicles. Along with management of money you will also be enjoying added benefits that will help enhance the growth of your company.

Save Resources

Reduce your bills by adapting the green initiative. In your office you can reduce consumption of paper and electricity bills as well. Buy CFC bulbs for lighting and install solar panels to reduce your bills. Apart from this you can utilize used office furniture instead of spending a large amount on new furniture. You might think that used furniture will look bad to your clients but that’s not the case. There are many stores and warehouses that have used furniture in great condition for use. Imagine the huge cut in costs just by opting for these small solutions.

Barter

If you are looking for a harmonious as well as a cost effective solution, then bartering is the answer for you. In this age old but effective method, you exchange services instead of cash with another company. Basically both companies will perform services for each other instead of dealing with cash. Such a move will help you network and socialize more with companies from different sectors. 

By using these few solutions you can be ensured of the fact that your money management skills are on the right track. So don’t waste any more of your precious funds, consult us for some constructive alternatives today!  

Top 8 Tips to Cut Business Costs

The one question that comes across every businessman’s mind is; How do I reduce my costs? There are various alternatives to a business which almost immediately cut down costs by more than 50%. All it requires is smart planning and knowledge on unique cost effective alternatives. 

At Bizcostsavers B2B Marketplace, we provide an array of solutions for you to choose from through our online listings. All our solutions will bring down your costs to a large margin. To give you a better idea, here are a few straightforward tips  which you should implement to cut costs:

1. Wages – Paying wages to full time employees with added incentives and fringe benefits can increase your expenditure quite a bit. The simplest solution for this is to adapt outsourcing. You will be able to pay the person only for the particular project they complete which is a lot lesser than offering full time employment. The amount of wages given will be comparatively lesser than the amount a full term employee gets. So you can employ specialists for short term projects. Even the concept of virtual offices and remote tech assistance help you cut costs in a convenient manner. 

2. Office Space – Instead of the common traditional offices, find a shared office space for your company. This can dramatically reduce your overhead expenses and other costs. In shared offices you get to network with other companies and promote your brand as well. If not for shared offices, you may even opt for serviced offices. You wouldn't have to worry about expenses on office furniture and maintenance because everything will be taken care of. 

3.  Furniture – When you purchase furniture for your office, it need not be brand new. You get trendy furniture in the best shape from used furniture stores. The amount you spend here will be so much lesser than what you would invest in new furniture. Some company hardly use their furniture for six months and they decide to get rid of them. So basically you can buy such furniture which is as good as brand new ones. 

4. Print and Stationary – Your stationery and print items can be quite expensive over a period of time. In such cases it’s best if you opt for a more technological approach. Don’t keep too many papers and files and also make sure you save paper while printing, by using both sides of the paper. Make use of the e-mail system and print less, this will save you a lot of ink. 

5. Electricity – One of your overhead expenses which can increase quite a lot is the electricity bills. With the overuse of internet and computers your bills will amount to a very high amount. You must look at greener options such as solar energy light bulbs and other such remedies. This will also be an effective green approach towards the environment. 

6. Hire Interns – Almost all companies make use of this simple method to cut costs. Interns basically look for experience rather than costs and you need someone to do all the small work around the office. It’s a win-win situation for both. Instead of employing a full time employee for this purpose you can just hire interns for a minimum charge or for free. 

7. Bartering – This age old method has been utilized in all fields of life and using this in the corporate world is one of the most effective ways for cost reduction. You can offer services to another company in exchange for something you need. So basically in this process, you would not be spending any cash. In addition this creates a very harmonious environment between all business sectors. 

8. Work at Home – If your staff works even once a week from home, you will be saving a lot of money which otherwise would be used on electricity and travel. With the amount of savings you may just be able to invest in some new ideas for the business. 

If you are able to adopt a business cost friendly mind set, many of these smart decisions will be easy to implement and work your way through all business decisions. Just by saving money on an everyday basis will amount to a large sum in the end. 

3 Ways to Barter Away Your Office Expenses

Are you looking for an efficient and practical solution to reduce your business operational cost? Then stop looking, because the concept of bartering is the answer to your problem. Bartering can save your business a great deal of money, simply by trading goods and services with someone else rather than money. In case you are facing the heat of recession or are struggling to make ends meet with your new start-up, bartering will help reduce operating costs and keep your business afloat. However the trick to good bartering is to agree to the right agreement which is not only beneficial for you but also for your partner. At Bizcostsavers B2B Marketplace, you get the opportunity to connect with other organizations and form an effective agreement for bartering.

In the list of Forbes 500 successful companies, it has been estimated that 65% of them carry out the bartering system. Thus, this statistic clearly justifies the fact that bartering helps to expand businesses, reduce operating costs and collaborate with colleagues in the network. Here are some more benefits of bartering that are very helpful:

• It helps you evolve mutually beneficial relationships with other business owners.
• You can build a network of colleagues who can later become referrals.
• You gain hands on experience and expand your skills.
• You can meet people outside your industry and form a social network.
• Improves your negotiating skills.

 In order to reap these benefits, here are some great ideas for ways to barter. Following these three ways can truly help reduce your overhead costs.

1. Barter for Office Space – Leasing or buying an office space can prove to be one of the biggest expenditures incurred by a company. Instead you can offer to perform services for a company which has a spare office space. You can even rent a small room space from another company in exchange for services such as web designing. Even if you have already rented an office space, you can ask your landlord for reduced rent in exchange of performing maintenance for the grounds. This can prove to be a win-win situation for both you and your landlord. 

2. Barter for Service – All businesses can barter for services with other organizations. For instance if you are a web designing company you can barter with another company to file your taxes while you design their website for them. This method of bartering will help you increase your network with another industry which can form a beneficial relationship in the long run. 

3. Barter for Print – Every business has small printing needs for letterheads, envelopes, business cards and other marketing materials. You can strike a deal with the printer to perform these services for free while you advertise their shop on your printed materials. You can come up with other ways to form this agreement as well.

 The primary advantage of bartering is the positive impact it has on your cash flow; you don’t have to spend cash to get what you want. You can be as creative as you want and come up with unique ways of helping each. At Bizcostsavers, we help you find those unique solutions so both you and the other business firm can benefit thoroughly from the arrangement. 

5 Ways of Bootstrapping Your Start-up

One of the biggest challenges associated with laying the foundations of a start-up in the corporate market is funding. Not everyone is lucky enough to get funded by venture capital or angel investors; you generally have to put in money from your savings or loans. When the budget is tight, your priority lies in keeping it more realistic and sufficient for a good amount of time.  In such situations, bootstrapping for your start-up becomes absolutely essential. Bootstrapping is the concept of keeping your budget low and realistic by utilizing the resources that are readily available to you.

At Bizcostsavers B2B Marketplace, we provide you with efficient solutions that allow you to utilize your resources in the most effective manner. We believe that by adapting the following ways for bootstrapping your start-up, you will achieve the best results of your tight investment in to the business. So have a look at some of our suggestions for you below:

Outsourcing: When you do not have enough money to hire an employee on a short term project, your best option is to outsource. The internet as a search engine holds a broad pool of talent in all fields so you wouldn't have to worry about finding the right fit. There are a bunch of web designers, programmers, writers and more available to work for you from their respective locations. You will be saving up the costs incurred by having an employee on site. To outsource people there are many specific websites out there; we help you find the most reliable websites so that you can choose from the best lot.

Interns: Hiring interns will prove to be a win-win situation for both. You will get support for your start-up at little or no cost while the intern gains sufficient knowledge and experience for the future. Interns are very useful for small hands on tasks that usually require the employment of another employee. Instead by keeping an intern you save the cost which would be spent on a full time employee. Especially since start-ups are fairly small and growing, hiring interns will benefit you as they can become involved in all aspects of the company.

Energy Efficient Solutions: Saving energy in your office will take you a long way, not only as a cost effective measure but also as an environmental saver. Simple steps such as using compact fluorescent light bulbs, using recycled products, keeping energy efficient appliances in your kitchen and adopting rain water harvesting will bring down your costs by a large margin. Not only will you be efficiently using your resources but you will also benefit from the added branding message that your company will gain by going green.

Barter: Bartering opportunities have springing up on the internet with the prominence of various business to business websites. This is one of the best solutions for small start-up to get what they need in the most inexpensive manner. Basically using this service will mean that you are providing services in exchange for other services from the person at the other end. So as you can see this method does not really involve cash flow, it’s just an exchange of services.

Shared Offices: Otherwise known as co-working, this concept has become quite the trend for start-ups today. Renting office space is a very difficult process considering high real estate costs and finding the right location. When you opt for shared offices, you will not have to worry about both those problems. Such shared offices are very vibrant and located at prime business locations only for a fraction of the cost. You will have the opportunity to explore the many benefits associated with co-working which will have a far greater impact on reducing your costs too.

Being a start-up company, you may think it is very difficult in managing a whole lot of aspects associated with it. However bootstrapping is your best and most convenient option and at Bizcostsavers we make it easier for you by providing solutions to save costs and go big. So always remember this: Cutting expenses only means one thing, more profits for you and your business.