Reduce spending or increase collection? How can I spend the most effectively during this pandemic? That is the question of many people who have to fall into difficult circumstances during the "tense" epidemic situation, especially shop owners who are doing business. The following article will show 5 effective spending tips to help you gain more knowledge to safely overcome the pandemic.
For some shop owners today, the management of store spending is often considered an important factor to help optimize profits. They both want to save costs but still want the store to be able to increase sales. The Covid pandemic is something that no one wants, in order to prepare for the worst cases, shop owners, please refer to the following article with Sapo to increase your knowledge in managing store spending.
1. Cut unnecessary expenses
When it comes to store financial management, the most important thing is to know how to control the monthly expenses paid to the store... There are many costs that can be mentioned such as, space rental fees. , employee fees, electricity and water fees... One of the most effective ways is to manage expenses in a smart way, keeping a close eye on them by cutting unnecessary expenses.
To do that, you must first skillfully make a list of items that need to be spent in the month. Prioritize payable and cut-off items. Apply principles such as building a spending budget, reducing unnecessary costs, making accurate decisions when using the store's budget, and paying for services that increase revenue. ,...
After applying, you will find that cutting unnecessary expenses will be very important to manage store finances at all times, especially during this epidemic season.
2. Set a limit for each spending
After making a monthly expense report, you will know how much you earn and spend a month. In order not to lose capital and affect cash flow, now you need to set a limit for each expenditure so that it does not exceed the total monthly profit of the store (after deducting all expenses).
Apply the rule of the 50 - 30 - 20 ratio in spending. Of which 50% is for basic items, essential needs to help you maintain the store; 30% for services that help your store grow, can generate revenue from it such as the fee to buy management software, budget for marketing strategy...; The remaining 20% is used to invest, import goods & save or pay debts. In the current pandemic situation, you can completely reduce your spending rate and increase your savings rate. That depends on the financial management mindset of each person.
3. Learn to take control of your finances
Financial independence, it sounds simple, but for some shop owners just starting a business, not everyone can do it. This requires shop owners to have a visionary mindset and a clear plan.
Store owners only need to apply a few lists of things to do such as: Understand the expenses and revenues of their store as well as the fluctuations in revenue / expenditure to be able to timely rotate capital, set revenue goals and try to achieve it, set a spending limit and make sure you don't go over it. Financial control can also start from very small habits such as viewing regular reports on the Sapo application, comparing revenues / expenses between months to optimize costs. With this way of tracking revenue/expenditure, it's a great idea to start learning how to proactively manage your store's finances.
4. Choose a marketing/promotion campaign that fits your budget
If before, when the business situation was still good and you had a lot of capital, you could easily pay for an advertising campaign or launch an arbitrary promotion campaign to attract customers, now You need to consider and calculate carefully before making a decision. If you make the wrong choice, that doesn't work, then that spending will become "useless" for your store. Especially in difficult periods like the current epidemic, the customer's saving mentality is being built, so you have to research and find out carefully to avoid losing money but not making a profit.
You can refer to the article Create a promotional campaign with the free Sapo sales management app - Attract customers during the effective epidemic season to find out how to find the right campaign for your store.
5. Use Sapo's free sales management app
As its name suggests, Sapo is an application that helps you manage your store effectively, regardless of whether it is an online or offline store, Sapo does not charge your fees, very suitable for use, instead of existing applications. charge your fee every month, well worth the experience.
The free Sapo application is integrated with many useful features for store owners, such as: Revenue - profit and loss reports, debt management, profit - revenue / expenditure management, order management goods via Facebook channel... When using the application, you will not need to spend any more effort to calculate revenue and expenditure, because everything is calculated automatically on Sapo. You just need to open the app, add products and create an order, you can know the income / expenditure immediately, at any time and anywhere.
Experience the free Sapo sales management application here!
Conclusion: Above, Sapo has outlined 5 effective spending secrets. What are you waiting for, apply to help you manage your store finances more effectively during this stressful epidemic season. May your business thrive and stay strong through the pandemic!
Download the free app right here!