For small business owners, a drop in revenue can trigger stress and anxiety. Often, business owners immediately begin to search for ways to cut back to maximize their cash flow. But there are some cuts you shouldn’t consider making.
- 1. Advertising
This is an automatic cut for a lot of struggling entrepreneurs, especially if their business has a steady client base. But even when you’re having trouble you should be doing something to spark expansion. If you have to cut back on traditional marketing, use social media marketing to reach your audience. There are many free or low cost options to online marketing.
- 2. Safety
Don’t cut corners when it comes to employee safety. For instance, if OSHA requires your business to have a non-slip flooring surface, don’t avoid replacing them if necessary. Falls could result in workman’s compensation issues or lawsuits if a customer takes a tumble.
- 3. Training
Becoming a strong competitor requires an investment in training that will enhance your skills or those of your employees. Whether this training comes in the form of technology, sales, or teamwork, training is an ongoing necessity for growth.
- 4. Technology
Technology often gets cut because of its huge expense, but it’s one that can help your company in many ways. Before you start cutting technology, consider what that technology is currently doing for your business, as well as what it can do for your company in the future.
Easy ways to cut spending:
- Reduce energy usage
- If possible, telecommute
- Stop travel expenses
- Buy used equipment
- Use a bartering system
- Closely manage inventory
- Don’t buy in bulk