Running a small business tends to make us much better at financial management. You’ve got to learn how to manage finances. Otherwise, you’ll be out of business before too long. We’ve got a couple of tips and tricks that should make things easier, though. Keep reading to learn how to benefit your online business.
Search Engine Optimization
Running ads is part of doing business, usually. But, that doesn’t say much about how you’re running them. Putting a bunch of ads on TV is how things were done for a long time. However, it’s pretty expensive to purchase air time nowadays. Look into search engine optimization. That’s a way of getting more traffic to your site without traditional advertising. Essentially, you’ll be creating a more attractive website to search engine algorithms. They’ll show you at the top of the results whenever people search for something. The higher you are on the results, the more traffic you’ll receive. Usually, SEO is a one-time cost, too. So, you won’t have to put it into your monthly budget, unlike other ads.
Obtaining favorable financial terms is a huge boon to small businesses. Not all lenders give them good deals, though. That’s why we recommend looking into loans backed by the Small Business Administration. They’re not able to lend to small businesses directly. But, they’ve got a ton of partners in the financial industry. They’ll make sure your loans don’t have bad terms, too. So, you won’t suffer under punitive interest rates. Getting them to help you obtain financing is a great idea if you’re a small business owner.
Another way you could raise capital would be crowdfunding. That’s when you create an online campaign to garner donations from the public. It’s not as complicated as it sounds, either. There are a lot of crowdfunding platforms available online. Just create an account on one of their websites. Then, they’ll walk you through their campaign creation process. Once you’re done, you’ve just gotta let people know. A lot of successful businesses got their start by crowdfunding. Most of the time, they’ll offer supporters a better deal. It doesn’t have to be anything too excessive. Many supporters are happy to receive a simple thank-you note.
How much have you been spending on labor costs? When you’re running an online business, you shouldn’t have to spend all that much. That’s because you’ve got access to an entire world of talent. Stop limiting yourself to people you know in person. Usually, domestic labor costs much more. So, invest in a virtual assistant. They’re available from all over the world. You could get someone equally talented for half the cost. Why spend more when you can get the same results?
It’s common for small businesses to invest a ton in servers and computer equipment. That’s not the smartest financial decision, unfortunately. We’d suggest looking into a cloud-based solution, instead. Cloud computing scales much better than physical infrastructure. Plus, it costs a lot less to get started. Now, you can even use cloud cost optimization to save even more. It’ll analyze how you’re using the cloud to identify potential savings. That way, you’re not overspending for your service. Only spend as much as you have to spend. Anything more than that would simply be a waste.
Minimize Processing Fees for Your Online Business
A hidden source of expense for online companies would be processing fees. Your payment processor charges you a certain amount during each transaction. It could be as high as 5%. Or, it could be as low as 1%. That doesn’t sound like a huge difference, but it’s more than you’d think. Compare different processing options to see what’s the best deal. Saving a few extra percent on each transaction could add up to thousands by the end of the year.
Optimizing Your Small Business’s Finances
Optimizing your finances isn’t tough as people would like you to believe. There are a ton of resources, especially for online businesses. Spend a little time researching all your options. Just a few hours could end up shaving your overhead by 30% or more. That would make being profitable much easier. So, it’s definitely worth your time.