For small businesses in the Philippines, it isn’t always enough to be turning a profit. There’s a big difference between surviving and thriving and the most successful companies know that it isn’t about how much you’ve got in the bank. To build and sustain a future, you need to find that perfect balance between profit and expense.
This is a lot harder than it sounds because running a business (even a small one) is a costly endeavour. In fact, setting up a small company is a huge task, because you’ve got to invest a lot of money in order to start making it. It is a major challenge, particularly for entrepreneurs with small budgets, but there are some clever ways to make the cash go further.
Keep reading for advice on how to cut costs, streamline expenses, and minimise waste while running a business in the Philippines.
Give Yourself a ‘Get Out’ Clause
You pick a workspace which feels right and if, for any reason, you end up needing to downgrade, upsize, or add more features, you only have to ask. Head to www.servcorp.com.ph/en/serviced-offices/ to learn more. The benefit of this flexibility is that you never end up paying for features you don’t need or won’t use.
Keep Your Core Team Small
Certainly, in the early days, it can help to keep the number of core employees to a minimum. Eventually, all small businesses need to grow and take on more staff, but you should wait until it’s no longer an option but a necessity. In the meantime, use remote workers, freelancers, and independent contractors to get tasks done at lower rates.
For example, things like web development are essential for small businesses. This part of Southeast Asia may be a little slower than the west when it comes to digital technology but it is developing very fast right now. You need a high-quality website to strengthen your brand presence, but you can hire a freelancer to design it as a ‘one off’ project.
Invest in Technology
One area where it really doesn’t make sense to cost cut is software, because studies have shown that high-end, high-quality tools lead to lower expenses. The faster, smoother, and more accurately you can carry out tasks, the more money you stand to make. So, things like AP software, ERP systems, and cloud storage solutions are highly recommended.
In fact, invoicing is a great example. It is common for vendors to offer small (but worthwhile) discounts to customers who settle their bills early. This means that, if you buy from the right suppliers and process payments quickly, you could save money. With a robust AP system, you’d be grabbing these discounts all the time because they make managing payments easy.
Why Saving Money Is about Spending It Carefully
The most successful businesses don’t spend their lives scrimping and saving. They understand that a massive bank balance has little value if it isn’t being used to help grow and develop the company. So, try to focus less on how much money you have and more on how and where it is spent.
Minimise waste by cutting extraneous resources and services. Consider using serviced offices because they provide tailored, personalised workspaces. These facilities are highly flexible but they compete with many of the top real estate brands in the Philippines. The locations are impressive, the tools are cutting edge, and the goal is to give tenants full control.