Money saving ideas for small businesses

ONE of the main concerns for small businesses is how to save cost.

Cost cutting can make the difference between success and failure for a business, particularly during tough, economic times.

A company needs to instil a culture of frugality and awareness to make a big difference in waste. If enough employees and managers can be trained to think this way, it will eventually become second nature.

Below are some basic tips on how to cut cost and ensure your business can operate more affordably.

1. Save power and money by turning off all lights and equipment that aren't being used. While this idea seems self-evident, many people and companies ignore it, leaving lights and computers on all night long. All electronic and electrical items can be switched off when not in use to save electricity and money.

2. Go green and cut down on power use and waste. A lot of initiatives used by businesses to go green can also be used to save money. Paper saving is one of these aspects. The office can save paper by printing out only necessary documents, using smaller font-size to help utilise lesser paper. Printing on both sides and sending the paper to recycle helps the environment and your finances.

3. Barter. Find other businesses in your area and barter your services. Bartering allows you to trade services with other business owners, which can save you money because you don't need to hire independent contractors. You also can set up an agreement with other business to refer clients to one another.

4. Buy used furniture. Buying used furniture and office equipment allows you to save money. New office furniture can get expensive, but you may find good deals shopping at a resale shop. To confirm you are getting quality furniture, check the furniture in person before you buy it.

5. Eliminate small expenses. Expenses that are considered small - like styrofoam cups for drinking coffee or water, and disposable plates used in the cafeteria can become substantial in the long run. To avoid this, replace all styrofoam with proper mugs, plates, and cutlery so they can be re-used.

6. Hire temp employees or contractors. Administrative costs can add up to major expenses for small business. Instead of hiring full-time, permanent employees, hire temporary, part-time employees or independent contractors. In most cases, you are not required to provide benefits for part-time employees or independent contractors.

7. Use a virtual office. Virtual offices are increasingly popular. A virtual office allows a business owner to possess a physical address and have access to conference rooms without paying the full price of renting commercial space. Many virtual offices provide a receptionist and use of office equipment in the rental price. You don't get the full benefits of renting your own office, but you can save a significant amount of money if you don't need to use office space often.

8. Share an office. If renting a virtual office is not an option, save your business money by sharing an office space with another tenant. Choosing an office space roommate who shares similar business interests may make the experience easier. If you use your office only sparingly, structure your rental payment accordingly.

Compiled by 1Klassifieds team

Credit to NSTP and Google Images
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Blue ocean strategy for SME

IF YOU are an SME and caught in a tough business environment, what would you do?

Do you follow what the competition is doing, or do you move away and be a trail blazer?

If you follow the competition, you may fall into the Red Ocean, where competition is stiff but if you move away from it, and identify your own space, you will swim into the Blue Ocean and create your own uncontested market space, and at the same time, make the competition irrelevant.

To achieve this, you must create your own value proposition, rather than follow or benchmark the competition.

SMEs can gain uncontested market space, strengthen their position, and create sustainability by focusing on brand creation. That is the premise of "Value Innovation Programme for SMEs" to be launched at Grand Dorsett Subang, Petaling Jaya on December 12.

President of The BrandLaureate Dr KKJohan, said: "The programme will use Blue Ocean Strategy to help companies create new markets and recreate existing ones within a short time, at lower cost, and higher level of knowledge transfer and skill building.

The programme, jointly organised by The BrandLaureate and UCSI Blue Ocean Strategy Regional Centre (BOSRC), consists of a four-day workshop, over a period of two months. It is suitable for CEOs, CMOs, CFOs and senior management involved in brand building.

* Field Work

After each workshop, a twoweek field work exercise will be conducted for each brand, where the results will be validated, and made known to each organisation.

"By the end of eight weeks, companies will be able to chart a new path of growth for their brand, and develop the blueprint for execution".

Johan added: "The BrandLaureate and UCSI BOSRC strongly believe that SMEs have the potential and dynamism to rise above their status and move on to become emerging giants.

"What is needed is the right approach and support that leads to the creation of ideas and breakthroughs in business growth. Hence, the Value Innovation Programme for SMEs is a solution to help them realise their brand potential, and achieve leap frog growth."

* Dedicated Team

During the programme, a dedicated team of Blue Ocean Strategists with proven track record will guide participating companies on the right track to build their brands. Each organisation may send up to five participants for the programme, and they will have a lead Blue Ocean Strategy consultant, and a support staff.

This programme is not only restricted for SMEs but for any organisations who wish to grow their brands in an uncontested market space.

* Memorandum of Understanding

A memorandum of understanding will also be signed between The BrandLaureate and UCSI BOSRC on December 12, followed by a talk by two key Blue Ocean Strategy specialists Raj Kumar, the Director of Strategy and Innovation and Project Lead; and senior consultant David Noon.

Both have worked with many international corporations and SMEs in implementing the Blue Ocean Strategy.

For more information, call The BrandLaureate Secretariat at 03-77100348 or email info@thebrandlaureate .com.

INFO

The Importance of Brand Identity

AS the business environment gets tougher each passing day, how do small enterprises (SMEs) survive with limited resources and capacity? President of The BrandLaureate Dr KKJohan reiterated that Brands must have their own distinct identity which consumers can associate with.

"They must develop their brand to be the market leader, one that defines and sets the benchmark of excellence".

Professor W. Chan Kim and Renee Mauborgne, the authors of the Blue Ocean Strategy, pointed out that If we continue to benchmark the competition, we will end up looking like them, and consumers will not be able to identify the difference.

"Stop benchmarking the competition. The more you benchmark your competitors, the more you tend to look like them..." added Johan.

Credit to NSTP 1Classified Team and Google Images

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