Along with many other SMEs, Australian printing businesses are currently facing a number of ongoing struggles with marketing, growth and cash flow. Cash flow is the lifeblood of your business, and managing it well will ensure your company’s vital signs are stable. Outlined are some ways that you can pump life back into your business and thrive in even the worst economic conditions.
Ask for supplier rebates
Suppliers often offer discounts of up to 2.5% for early settlement or on-time payments. When multiplied across your main suppliers, this quickly adds up. You can also use volume as a means to accrue discounts. If your order is not sufficient enough to bargain with, try finding like-minded SMEs in the printing industry and establish a mini buying group. Or, join an established buying group that will do the legwork and negotiating for you.
Cut down on non-core products
Offering too wide a range of services can be costly and distract you from where your core strength lies. It may be worth looking at what types of services and products are the most beneficial and focusing on these.
Shrink your tail spend
Tail spend covers those things that your company purchases that don’t directly drive your business, but it can comprise up to 30% of your business’ total costs. Instead of looking for savings and discounts with core suppliers, where the larger orders are placed, try shrinking your tail spend and get some quick wins in expenditure across a number of smaller suppliers.
Bring in the experts
Small business owners are often time and resource poor, so outsourcing jobs like marketing and bookkeeping can be a cost-effective way to achieve results. It also leaves you with more time to focus on running the core aspect of your business.
Manage your supplies
Maintaining the correct stock levels of supplies to be able service your clients well without having stock left over is a difficult balancing act, but is crucial to creating better cash flow. Make sure that you are ordering products at the best time to take advantage of your credit accounts with suppliers, so you are only restocking when necessary.
Market smart
Smart marketing can lead to a huge increase in profits for your business through more frequent patronage, add-ons and even increased prices. This can include:
• Ensuring your clients receive constant communication and helpful advice so that you are top-of-mind
• Scheduling follow-up calls and reminders when it is time for new printing work
• Utilising vouchers and referral incentives.
Draw up a list of businesses that compliment your printing business, for example graphic designers, and see if there’s a way you could help each other out. Here are some things you could suggest to potential referral partners and strategic alliances:
• Offering discounts to customers when they use each other’s services
• Writing guest posts for each other’s blogs or newsletters
• Including vouchers for each other’s businesses in gift and information packs.
Don’t forget to make the most of other low-cost and free marketing tactics such as social media, PR, networking and speaking opportunities. With many SMEs expected to face continued declines in sales over the next 12 months, now is the time to give your business a health check.
Michael Reid is the founder of SME Savings, a free group buying service exclusively for SMEs, smesavings.com.au
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