Owning a family business can be a great way to earn your living because of the flexibility and the chance to work with your family, but it can be expensive to own a business. There are plenty of overhead costs, from rent to advertising to acquiring products. And money troubles in a marriage, or other family structure can be especially stressful. Still, reducing the costs of family business ownership can leave you in a better financial situation.
Cut Down on Fleet Costs
If you own a fleet, you may find it is one of the more expensive aspects of business ownership. Even if multiple family members are able to run the fleet, there are still ongoing costs, such as insurance and maintenance. While it can be tempting to skip out on keeping extremely close tabs on your fleet, it’s actually critical to take the time to track important data points. This gives you better insight into your fleet so you can avoid wasting any time or money. Using the right platform to manage this data can help you reduce fleet management costs going forward.
Look for Cheaper Forms of Advertising
Many small businesses are moving away from traditional forms of advertising and choosing lower-cost options because of the availably of internet marketing. You don’t have to spend as much on print ads when internet marketing can be just as effective or even more so. Social media can be a fairly inexpensive way to reach more customers. And consider finding ways of being featured in different media and publications, especially if you have expertise in a certain area. Using SEO can help you bring in more customers to your website. When you show up on search engine results, you are seen as more credible. Creating videos on social media can help you bring in more customers as well.
Outsource What You Can
While your family members might work hard getting the work done, you might find you have more work than people to do it all, especially as you start to grow. Hiring an employee to complete the extra work can be helpful, but it can also be costly. Consider outsourcing to independent contractors when these tasks arise. Because of varying experience, they may have more expertise in certain areas.
Think About More Than the Cash
When you are running low on cash, you should avoid closing the door on what you need, especially if it is critical to your operations. Don’t be afraid to barter your services in exchange for getting what you need. This is especially helpful if the services you offer are already geared towards other businesses. Of course, make sure you do your research on any tax implications in your area on bartering. You can often negotiate with your vendors as well to cut the prices even further. The price you are paying is not always the lowest you are able to go. Since vendors want to remain in business, they might be willing to negotiate rather than risk losing a great client. The worst that can happen is they will say no, and you won’t be paying any more than you currently are.