As a small business owner, you get hit with new expenses left, right and center. Not to mention the rising cost of inventory and shipping means that there is a careful balance to maintain between shrinking margins and raising prices. Costs aside, with a bit of planning and strategy, 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 saving ideas for small businesses:
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. Setting up and maintaining account is free on any platform. Then when it comes to ad spend, with a bit of research (and patience) getting started with paid social media ads doesn’t have to break the bank by any means. Be strategic in order to decide which platform or platforms are the best choice for your business and your audience.
2. Use free/open apps and software when possible
Along with social media itself, 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. Happy employees are productive employees!
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. Additional tips such as switching your light bulbs or using energy-efficient systems if both great for the environment and your business’s bottom line. You could also consider installing motion sensors to help control the lights.
5. Consistent review expenses no matter how small
Small business expense tracking is vital. Consistently reviewing where you’re spending money on your business 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. Accordingly don’t be afraid to cut unnecessary or “nice to have” expenses if they are not contributing significant value to your company or day-to-day operations. This could be a monthly service that you’re hardly using, or switching from a higher-cost premium option to a more economical one. 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. Don’t be afraid to negotiate
In the same way that you offer promotions and reduced prices to your customers, speak with your vendors or service providers. Particularly if you’re a long-term and loyal customer they likely won’t want to lose you as a client either and may be willing to offer you a reduced rate.
7. 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. On a related note, if some of your office equipment is starting to show some wear and tear, consider whether repairing or refurbishing it is possible before buying a replacement.
8. Outsource
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. While these employees can cover day-to-day or most vital tasks to running your business, anything that cannot be handled by these employees can be outsourced to independent contractors. Plus you can decide the amount of hours of work you actually need from the contractor to properly account for this cost in compared to another employee’s salary. Working with a freelancer or contracted employee can also help your regular employees with their work during particularly busy times.
9. Be a deal/promotion hunter
While it’s common practice for consumers to do it, there’s no shame whatsoever in seeking out a a great deal for your business. This could mean buying supplies or inventory when it’s on sale, buying certain items or supplies in bulk in order to save (just be sure it’s something you’ll actually use). It could also mean capitalizing on points systems or cash back that is offered by many credit card companies. With regularly purchasing those seeming small amounts can quickly add up.
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.
Bonus: Make the most of your taxes!
Properly filing your taxes and consequently taking advantage of all the tax breaks and returns that your business is entitled too can be a great way to recoup some additional money. You may be entitled to claim more than you were even aware of such as your vehicle, a portion of of meal expenses, advertising expenses, office expenses, and more. Check out our tax tips to help you get started and be sure to do your research to make the most of it!
While reducing costs can be challenging, finding where you can cut back and implement one or more of these business money saving tips can help you re-invest in your business’ future!
If you are in need some extra funds for your business whether for purchasing inventory, expansion, or to help with your cash flow, get in touch with us today.
