As a small business owner, you get hit with new expenses left, right and centre. Saving money from unnecessary expenses is a great way to re-invest in your business later so that you can help your business grow and succeed. So, let’s cut to the chase – here are our top cost-cutting tips:
1. Opt for low-cost advertising (aka make use of social media), word-of-mouth marketing
When looking to cut costs, why not make use of what’s readily available and free around you? Social media is changing the advertising game and making it easier than ever for businesses to reach out and interact with their clients. The best part? It’s free! All you need to do is set up accounts and you’re good to go. If you need help figuring out what social media is best for your business and how to navigate social media marketing, click here to check out our article!
2. Use free/open apps and software when possible (i.e. for marketing)
Along with social media, there are tons of free, user-friendly apps that can help enhance your business model. These might be for social media, others might be to help you organize your business and plan out your model. The key is to find what’s available to you and make the most of it! Take advantage of as many different business-building tools as you can find. Many of these are partially free, so try it out and see if it’s worth investing in.
3. Invest in employees
Employees are the face of your company and are in large part responsible for interacting with customers and helping operations run smoothly. That’s why it’s so important to create a great work environment and respect your employees. Make sure your employees receive the benefits they’re entitled to and make coming to work an enjoyable experience. Investing in employees best suited to your company’s needs will cut costs of replacing staff as well as boosting your business’ day-to-day operations.
4. Go green – reduce paper use, turn off non-necessary appliances/lights
Going green is a great way to cut costs! With all the other business tasks going on, it’s easy to lose track of how much you’re spending on things such as paper and non-necessary appliances. Reducing energy costs and switching to online organization can really help to reduce monthly costs.
5. Cut unnecessary expenses
On a similar note as above, cutting all unnecessary expenses is another way to save this year. Now is a great time to review your business model and find out where you’re spending and where you could instead, be saving.
6. Buy gently used
Buying gently used appliances can cut costs immensely. It’s no secret that office appliances can cost a hefty sum, so looking into good condition second-hand tools is a great option. This is also great if you’re starting out and don’t have a big budget to begin with.
7. Consistently review expenses
Consistently reviewing your expenses is not only necessary for cutting costs but also for running a successful business. Keeping up-to-date with every part of your business model can help you evaluate where you are succeeding and where you need to make changes. Knowing this will help you determine where you need to invest more and where you need to cut costs to optimize your business success.
Having a large team on board can be expensive and difficult to manage. For small businesses, maintaining a close-knit unit of employees can be the most effective form of management. These employees can cover day-to-day tasks and anything that cannot be handled by these employees can be outsourced to independent contractors.
9. Incentivize efficiency
Figuring out how to incentivize maximum efficiency for a company can definitely help decrease overall costs. This includes building an environment in which employees want to work and are overall happy with their employment. Consider using time-tracking measurements and setting standardized time limits to complete certain tasks. This can help keep you and your employees on track.
10. Consider integrating an internship program
Internships are a great way for young professionals to gain experience whilst helping small businesses pick up loose ends and tasks that need completing. Reaching out to local colleges and universities for more information can help you set up a program that can benefit both your small business and the community as a whole.
Cutting costs can be challenging but finding where you can cut back can help you re-invest in your business’ future!
Need some extra funds? Click here to apply!