Small businesses are more vulnerable to the downturns of economic cycles. As a small business owner, there are many steps you can take to minimise your exposure and generate greater profits for your business. For example, instead of having a full office with administrative staff, you can choose to use an outsourced answering service or use second-hand and refurnished equipment and furniture that will serve your purposes just as well as completely new goods. Here we look at the top six strategies for profit maximisation for your small business.

1. Outsource Non-Core Functions

Outsource your non-core functions as much as possible in your first few years. Outsourcing gives you and your business access to time, skills, know-how and expertise without the long-term commitment associated with hiring people. Pick and choose the staff you need on a project-by-project basis if appropriate for your industry. No matter your business size, outsourcing could be a very useful long-term feature of your business.

2. Don’t Waste Money on Fancy Touches

You want to make a great impression and get your message out there. But spending a lot of money on fancy touches may not necessary generate the interest and excitement that you’re looking for. Your time and effort should be convincing clients and potential customers that you will do or deliver what they want for them rather than demonstrating that you are in touch with the latest interior decoration trends or that you use the latest printing technology on your business cards.

Choose minimalist styles for business cards and brochures if your budget is not unlimited. Keep your office tidy and well-maintained but don’t spend your monthly takings on expensive sofas. Skip costly exhibitions and trade shows unless they are central to players in your industry. Expensive trips and fancy hotels can be avoided by teleconferencing or agreeing to meet the client at their premises for the day.

3. Use Second Hand or Lease-Hire

Unless you’re in a highly specialised industry, you probably won’t need state-of-the-art equipment. Second-hand, refurbished and lease-hire purchases will give your business the same value at a fraction of the cost while bringing potential tax benefits. Computer equipment, in particular, is superseded very quickly and there is a huge variety of refurbished computer systems that will serve your small business needs for years.

4. Go Easy on Hiring Staff and Expansion

It’s understandable for you to be excited about your growing business. But be careful about staff expansion, particularly in your first year or two. Work with your accountant to identify the real costs of hiring an additional staff member or two, and consider whether you would be better off outsourcing or hiring a subcontractor to do the same job upon demand.

5. Use a Virtual Office

Virtual offices can be one of the best budgeting choices you make for your small business. A virtual assistant creates the right impression to first time callers, helping you convert leads into sales. Unlike using a full-time personal assistant, there’s no need to worry about superannuation, wages or providing onsite facilities for employees.

6. Skip the Consultants and PR Firms

Unless you have an unlimited budget, using a consultant or PR firm will probably hinder your immediate business goals by blowing out your budget. While using consultants and PR firms could be of use to any type of business, sole traders and start ups should do their own research as much as possible rather than committing to a long-term relationship with expensive consultants. Advisers such as accountants, tax lawyers, and online marketing experts are appropriate partners for small business but defer looking to other advisers like consultants and PR firms until your business has expanded.