Manage your small business more effectively by cutting costs and switching merchant services providers, among other improvements.
January 03, 2018 2 minute read
It can be overwhelming to think about all your responsibilities as a business owner. There’s a lot to do, and following behind isn’t an option if you want to keep your doors open. Although it can be stressful at times, running a business can also be extremely rewarding if you manage it effectively.
Here are several helpful tips on how to manage your small business more effectively:
1. Find Ways to Cut Costs
Cutting costs enables you to put money back into your business. Yes, this tip is definitely easier said than done, but it is possible.
A January 2014 article by business resource Business News Daily discusses the importance of cutting business costs, as well as ways how. Suggestions include printing less paper, negotiating with your suppliers for better deals, and allowing employees to work from home at least once a week.
2. Switch Merchant Services Providers
While you may believe merchant services companies are all the same, that couldn’t be further from the truth. Providers vary in terms of rates, fees, products, and customer service. For example, only certain providers: offer EMV-compliant credit card processing solutions, such as the Clover Station and Payeezy; assign you to an industry-leading, in-house support team; and do not charge hidden fees. Therefore, it wouldn’t hurt to contact several providers to learn whether there's a better option than your current choice.
3. Develop an Inventory-Tracking System
Inefficient inventory management can negatively impact an organization. Foundry Management & Technology magazine breaks down the “true cost” of failing to keep track of your business’ inventory in an August 2013 article. It explains the direct effects on capital, inventory service, storage space and inventory-risk costs. This is especially important to keep in mind, since “inventory represents approximately 15% of total firm assets for public U.S. firms,” on average, according to the piece.
4. Hire People with “Can-Do” Attitudes
Although skills are important, these can often be taught. A positive attitude, on the other hand, likely cannot. When you hire people who are willing to put in the effort to make sure your business succeeds, you will end up with an incredible team that you can count on to ensure costs are down, inventory is effectively monitored, and business is running smooth.
An August 2016 article by Entrepreneur offers a helpful comparison to explain the significance of hiring the right people: “We often see this in sports where highly skilled players just don't fit in with their teammates, causing issues and discontent. Consequently, they are let go and then almost immediately team performance improves. There's even a term for this, ‘addition by subtraction.’”
5. Understand Your Target Customers—and How to Market to Them
Advertising for the sake of advertising isn’t going to bring in any new customers—it’s only going to cost your business money. As a result, reassessing your target customers can help you create an effective marketing campaign specifically designed to attract—and hold—their attention.