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How to Optimize SMB-Costs to Improve Asset Management

Running a small or mid-sized business is never a cakewalk. It’s a constant struggle with projects, clients, employees, and costs. The latter element deserves special attention, especially from SMB-owners who have jumped on the bandwagon only recently.

Due to the recession caused by the pandemic, in the next few months and maybe even years, knowing how to control your cash flow will be crucial for keeping your head above the surface.

In the next few paragraphs, find out more about some handy ways of achieving that goal.

1. Write down all your expenses

Most people control their finances more efficiently when they put things in writing. You can get one of the expense-tracking apps for that matter to keep all your expenses in one place. This includes the office rent, overhead expenses, employees’ payments, travel expenses (if any), taxes, and the budget for business equipment.

When tracking your expenses, it’s important not to mix business records with personal financial notes. Even if you’re a sole proprietor – in which case your personal assets aren’t legally separated from your business assets – keep these two categories apart.

Making financial plans a few months in advance and writing these things down is also a wise thing to do. That way, you’ll be able to prepare assets for some additional expenses on time.

2. Avoid debts on credit cards

Credit cards are a practical option for disciplined people who make their due payment on time.

For instance, if you need a powerful computer for your business office, buying it with a credit card and paying installments can be a financially justified option. In such deals, interest rates are usually low and it’s highly likely that you’ll earn enough money with that computer to make all the monthly payments on time.

On the other hand, some people use the money available on credit cards in cash, i.e. as a loan. If you just splurge the entire allowed amount from your business credit card, you’ll have huge monthly installments that will generate high-interest rates.

Therefore, use credit cards for clever purchases where you’ll be able to pay everything on time, but avoid using that money as cash.

3. Save assets for larger purchases

When an SMB-owner needs a new computer, the example above with a credit card is a clever choice.

However, if you need to buy several things and devices to keep your business rolling, think about other options.

On the one hand, you can get a special-purpose loan from a bank. Many banks offer personalized loan packages to SMB-owners, especially when they need to buy equipment for their business operations.

Interest rates for these deals are usually much lower than the ones for credit cards. So, you can buy everything you need for your business and keep returning this loan without any problems.

Still, bear in mind the following thing: the longer the loan period, the higher the aggregate interest rate.

Again, put everything in writing and calculate the right loan period for your business plans and possibilities.

4. Employ and rent only when necessary

Many SMB-owners rush into large deals without any real needs. If you’re a solo worker, you can rent a separate office space but you can simply go for a co-working space. If you don’t need perfect silence for your work, it’s a win-win option. You don’t have to work from home, but it doesn’t require spending thousands of dollars on the office.

The same thing is to hiring an additional workforce. As long as you can finish all your core business tasks during your efficient working hours, you shouldn’t employee workers. Of course, these working hours mean that there should be a work-life balance. If you’re working ten and more hours a day, it sounds like the right time to hire someone.

But if you’re planning to hire only to be the boss, it will only incur additional costs without improving your overall business productivity.

5. Go for free online promotion

Advertising is one of the most expensive items on every SMB budget list. However, with new technologies and marketing strategies, it’s possible to promote your business without spending a fortune.

  • Social media. Use Facebook for general business promotion and Instagram for business visuals and direct sales. Improve business networking via LinkedIn.
  • Website and blog. A business website is a must in the modern business world. As suggested by the designers from a digital agency in Houston, it doesn’t have to be an extravagant website. Share that basic information about your business, services, and packages to show your potential visitors that you’re a reliable and transparent business.
  • Video promotion. From explainer videos to promotional videos for special purposes in your business, turn to this kind of promotion. It can be done for free or cost only a little but the return can be massive.


The SMB-market is full of new ventures, ideas, and entrepreneurs. On the one hand, the competition is harsh. On the other hand, SMBs can adapt quickly to new conditions, which is great for their operability. However, this is possible only if you keep your costs low and manage your assets without any unnecessary debts. Hopefully, our tips will help you behave that way and ensure steady cash flow for a successful entrepreneurial quest.

Author Byline: Liam Collins is a tech pundit and Web enthusiast working at He spends most of his time reading and writing about the current affairs in the world of information technology. When he isn’t working, he likes going for long bike rides and walks in nature.

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