How To Conserve Your Capital
A penny saved is a penny earned. That is how the old saying goes.I feel there’s a lot of wisdom in that. I’ve put it into practice and it really does reap some great results. The best part is, it’s easy and requires just a slight amount of discipline and smart decision making from your side.So today I’m going to share some great capital conservation tips,which can be utilized effectively by all small business owners without being industry specific :
1) Figure out what drives your business : It is crucial to know everything about your business. While I’m certain that all business owners do keep track of all the tangible and intangible factors,you also need to keep track of the vague,abstract factors, like what actually drives your business.Figure out details such as hours billed,average order sizes,units sold or loaned etc.
2) Pricing : Pricing is very important as it is that which determines which niche of the market your product will belong to. Determine pricing by adding up the total value of product and service costs,any direct or indirect expenses,the IMAGE of your business and of course a reasonable profit.
3) Spend on definite expenses : It may sound overly cautious but then again, you can never be too cautious in business. Try as far as possible to avoid committing any cash or capital till it is absolutely necessary. Don’t buy services that you think you may need in the future, buy them when you need them.
4) Lease,lease,lease! : When you have the fabulous option of leasing,why invest in every service?Sometimes,it makes more financial sense to lease instead of buying. Before taking such a decision,weigh the long term benefits of buying over leasing and act accordingly.
5) Multi-task : Look for office equipment that can multi-task. You do not need to own a copy machine and a fax machine.A fax machine can do both jobs satisfactorily.
