Reams of books have been written about reducing and streamlining expenses for small business in order to increase net profits. However, staying solvent isn’t the only goal. Most small businesses overlook money-making opportunities that can be generated through their regular expenses. A creative and clever entrepreneur can find ways to make a profit and develop revenue streams that are outside the normal business paradigms. Here are a few examples.
Turn Your Rent Into Cash
Do you rent an office or warehouse? Do you use every square foot of it? Many small businesses have extra space that just goes wasted. There are many other entrepreneurs, hobbyists, and work-at-home business owners who need just a little bit of space. Why not rent out that empty office, or build a little shop in the corner of your warehouse that can be rented by a hobbyist or small craftsperson?
Renting unused space helps to effectively reduce your total rent and gives you a little extra money each month toward your total revenue.
Advertise in Newsletters
You’ve read much on our blog about developing a company newsletter. A database with your customer contacts is a great asset you can use to stay in touch and notify past and current customers of special deals and company news.
Your database may also be an asset to an advertiser. The bigger your list, the more chance you can have at selling advertising space on your newsletter. Rather than keeping a newsletter as a marketing expense, it could pay for itself, or even run a profit, with the right advertisers.
Sell Old Equipment
If you have performed your depreciation correctly, your equipment can make you a little extra money as well. Computers can be quickly depreciated in a few years. Automobiles also have about a five year life cycle.
However, after you have completely expensed them, don’t throw them away. Sell old automobiles. If they’ve been well maintained, there is always a demand for good used vehicles. Even older computers have a need in some home, either as a second back-up computer or a desktop for a child. These are just two examples. Consider other equipment that can be sold as well.
Of course, if you cannot find someone to buy the working equipment, you can donate it to a local charity, but make sure you obtain donation receipts for tax-deduction purposes.
