Out of control inflation has now engulfed most of the world’s major economic zones, including nearly every developed and some developing nations. While many working adults manoeuvre to side-step rising prices in dozens of ways, what about owners of small businesses? Many of them work from their homes operating micro companies as a way to earn a second income. Luckily, many of the same techniques that individuals use to battle rising prices can work for entrepreneurs too.
One of the best examples is real estate investing, long a top choice for those who want to build long-term financial security through regular cash flow and multiple tax advantages. In the same way that families tighten their monthly budgets, entrepreneurs can review their recurring expenses and make one or more strategic cuts. Other tactics that can save owners money are outsourcing and joining the local chamber of commerce. Both have the potential to minimize various types of routine business spending. Here are some ideas to get started on bringing your small organization’s costs down in the face of inflation.
Investing in Real Estate
One of the newest wrinkles in the multi-faceted field of real estate investing is related to the surge in Airbnb-type rental properties. For those who operate small companies and also own a home, the situation can yield significant financial benefits. The concept behind short-term vacation rentals is to turn unused or rarely used rooms in your home into income generating rental units. The technique has grown in popularity during the past few years and offers homeowners a potentially lucrative, user-friendly way to generate cash from the otherwise dormant property. However, while the process is relatively simple, there’s more to it than just posting an online vacancy notice. It’s essential for potential Airbnb entrepreneurs to learn all the details about how to operate a profitable venture. Only then should small business owners decide if the idea is a worthwhile one for bringing in additional cash.
Cutting Operational Expenses
There are smart budgeting apps that can assist any commercial entrepreneur with developing detailed monthly income and expense statements. The goal is to pinpoint realistic ways to lower expenses without affecting profits. It’s important to avoid traps like assuming that you can save by slashing advertising costs. One of the core principles of commerce is that every dollar spent should generate income, so across the board cost cutting is usually counterproductive.
It takes a bit of soul searching to figure out what chores can be outsourced. That’s because it’s human nature for sole proprietors to want to do it all, even when they don’t have the time, funds, or skills to meet that lofty objective. For most owners of small enterprises, common candidates for outsourcing include chores like tax filing, advertising, and IT security. For business owners with in-house teams, you can still invest in employee development and outsource at the same time just be sure to outsource tasks that do not take away from your collaboration efforts.
Joining the Local Chamber of Commerce
There are many benefits to chamber membership, even if there are fees associated with membership in some cities. In addition to networking potential, members can learn about their niches from mentors, uncover new markets, meet local vendors, and learn new techniques for controlling costs. If your local area doesn’t have a chamber of commerce, consider starting one.