Budgeting

4 Ways Entrepreneurs Can Slash Their Budget in the Face of Economic Hardship

Here’s a harsh truth: you can do everything right as a business owner and still struggle due to factors beyond your control.

For example, recent tax rate changes impacting small businesses could cause your bottom line to take a hit; likewise, when the public at large has to pinch their pennies, they have less to spend on your products and services.

The solution for many businesses is to run their companies in such a way that they’re as swift as possible. That is, they’re able to adapt as the winds of change blow and keep costs so low that the go mostly unaffected by the state of the economy.

This style of doing business is akin to living below your means: while it may not always be glamorous, it does get the job done.

So, where do you start with a more frugal approach to running your empire?

Cut the Cord with Subscription Services

If you’re a business owner, it’s time to rethink anything that serves as a monthly charge on your business account. Anything from streaming services you use for entertainment to the monthly coffee bill at the office is worthy of slashing when money’s tight. Think of it this way: every penny counts.

This is especially true if you’ve been paying for business or marketing software that isn’t netting you much of an ROI. More likely than not, now’s not the time to experiment with a bunch of new tools and tricks but rather make the most of what you already have.

Open Yourself Up to Contractors

Modern companies are greatly benefiting from the freelance economy and rise of remote work. It’s arguably easier than ever to vet and hire freelancers to help grow your company versus relying on salaried workers. While keeping names off of your traditional payroll may make your company feel smaller, the benefits of hiring freelancers are difficult to ignore.

Besides, once you’ve landed a freelance or remote team that works for you, chances are they’ll want to stick around for the long-haul. Such a relationship is a win-win and allows you to have more wiggle room with your budget.

Make the Most of Free Resources

The number of tools and resources available to entrepreneurs today is staggering. Best of all? Some of the most powerful platforms are absolutely free. From WordPress plug-ins to Google Analytics and beyond, growing your business doesn’t have to cost an arm and a leg.

For example, smart social media and content marketing are effectively free strategies for snagging leads and funneling traffic back to you site. While you may not be able to get rid of your web-hosting, the fact remains that you don’t have to pay for pricey advertising to grow your online presence.

Re-purpose Your Existing Content

Speaking of content, it’s difficult to prioritize new posts and marketing materials when you’re struggling to keep the lights on. For this reason, it may be prudent to focus on re-purposing your existing content both on-site and off.

For example, your business’ case studies, testimonials and positive results from customers can be turned into blog posts: on the flip side, those blog posts can be re-purposed into videos and infographics for social sites. The 80/20 rule of content promotion notes that most of your time should be spent on promotion versus creation, which ultimately saves you time and money.

Economic hardship doesn’t’ mean that you have to pump the brakes on your business. Instead, take the steps to running a swifter company that can operate regardless of the current economic climate.

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