When starting and running a brick-and-mortar business, there are many costs to consider. From rent to inventory, these expenses can quickly add up. According to the Small Business Administration, the average small business spends about $3,000 per month on operating costs, which doesn’t include the cost of goods sold.
There are some ways to cut costs without sacrificing quality or service. It’s important to spend only on what is necessary to save money in your business. Here are a few tips for avoiding unnecessary expenses when running a brick-and-mortar store:
1. Shop around for the best prices on inventory and supplies.
Every business needs inventory, but you don’t have to buy everything from one place. Shop around for the best deals on the items you need to keep your business stocked. Through comparison shopping, you can usually find lower prices, from office supplies to retail merchandise.
One good way to save money on inventory is to buy in bulk. Buying larger quantities of items can often get you a better price per unit. This can save you about 10-20% on your inventory costs. But, only buy in bulk if you’re sure you can sell the products before they go bad. There’s no point in saving money on inventory if it’s just going to sit in your store and go to waste.
You may also get discounts from suppliers if you pay cash upfront or on time. Many businesses offer discounts for early payment, so it’s worth asking about. You can also try negotiating with suppliers for better prices.
2. Rent space in a shared office or retail space.
If you’re just starting, you may not need your own office or retail space. You can save money by renting space in a shared office or retail space. This can be a great option if you don’t need much space or want the flexibility to move in the future.
Shared office space can cost as little as $200 per month, and shared retail space can cost even less. This can be a great way to save money on your overhead costs. But, make sure the space you’re renting is in a good location and is appropriate for your business. Keep in mind that limited or no foot traffic can make it difficult to generate sales.
But these spaces can also restrict your hours of operation and the type of business you can do, so be sure to read the lease agreement carefully before signing.
3. Keep up with maintenance and repairs.
One way to avoid unnecessary expenses is to keep up with maintenance and repairs. This may seem like a no-brainer, but it’s easy to let minor problems turn into big (and expensive) ones. If something in your store breaks, fix it right away. Don’t wait until it’s a bigger problem.
For example, if a light bulb burns out, replace it immediately. If you wait too long, the fixture may need to be replaced, which will cost more money. Your goal should be to nip problems in the bud, so they don’t turn into bigger, more expensive ones.
It’s also important to do preventive maintenance. This can help you avoid costly repairs down the road. For example, commercial spaces with driveways and parking lots are prone to cracking and potholes. These can be expensive to fix, so it’s essential to inspect your asphalt and make repairs as needed regularly. Consider getting driveway sealing services to extend the life of your asphalt and avoid having to pay for costly repairs.
4. Get creative with your advertising.
Advertising costs about $625 per month for the average small business, according to the Small Business Administration. But you don’t have to spend much money to get the word out about your business. There are plenty of free or low-cost marketing and advertising options available.
Many small businesses rely on word-of-mouth marketing to generate sales. Your customers will tell their friends and family about your business if you provide excellent products or services. You can also encourage customers to leave reviews online. These reviews can help attract new customers and boost sales.
Social media is another excellent way to market your business without spending much money. You can create a free profile on platforms like Facebook, Twitter, and Instagram. Then, start sharing your content and engaging with potential customers. Make sure to post regularly and interact with people who comment on your posts.
There are plenty of ways to save money while running a brick-and-mortar business. By being strategic about your spending, you can avoid unnecessary expenses and keep your business running smoothly. With some creativity and effort, you can find ways to save money on your overhead costs, marketing, and more. Don’t be afraid to think outside the box to save money on your business expenses.