12 Ways To Save Money As A Small Business
Being savvy about your business spending is an important part of keeping your business afloat, and profitable. This is especially important when your business is new or small, when every small amount of money counts.
If you’ve had a financial setback, this article is helpful.
Use these 12 tips to save money in your business:
- Learn the difference between cost avoidance and cost savings. Both are useful tools when used correctly. Cost avoidance means taking actions to avoid making a financial outlay at all, such as taking steps to improve employee satisfaction to avoid the cost of hiring. Cost saving, on the other hand, is finding ways to reduce the cost of products and services, by finding discounts and negotiating deals. Find out more here.
- Try non-traditional advertising ideas. Instead of spending big dollars on traditional marketing, spread the word about your business with PR instead. Social media and press coverage are much cheaper and can be just as effective.
- Outsource where you can. In-house employees cost more than just their salary. Retirement plans, benefits packages, holiday and sick pay, and of course the cost of maintaining an office all add up. In the early days, if you don’t need a full-time employee, outsource to freelancers or agencies to get work like copywriting, design, or PR done by an expert.
- Use the cloud. Save the costs of expensive software and use cloud-based solutions where you can. You can run almost anything, from your accounts to document storage, with cloud-based software. I recommend using QuickBooks software to process your accounting transactions on the web. Read this article to find out more about QuickBooks.
- Remote work. Remote work or telecommuting is easier than ever, thanks to the technology available. Having staff based from home saves the cost of running an office.
- Consider using interns. Taking on junior staff members from local colleges to do tasks like tweet, post to Facebook, or to write blog posts. This strategy can save you a fortune, while offering important work experience to local young people.
- Review your expenses. Make sure you regularly take a look at your spending, and see if there’s anywhere you can make savings, even small ones. This could mean switching to a new supplier, or cutting back on how much stationery you use. While you’re doing this, make you sure also cancel any subscriptions you no longer need.
- Buy in bulk. Lots of office supplies, like printer ink or paper, are cheaper when bought in bulk. The initial outlay saves you money in the long run. Cut out the middleman, and save cash by buying supplies from bulk warehouses yourself.
- Go green. Making your business more eco-friendly can also save you money. Being smart about electricity use cuts down on the bills, as can running a paperless office.
- Buy second hand. Lots of office equipment, from desks to printers, can be bought second hand. Try using eBay or local selling sites to outfit your first office.
- Take advantage of discounts. Some vendors offer discounts for paying early, so take advantage to save money on services. Look out for discounts or offers for small businesses that you can make use of, too.
- Encourage word of mouth. It’s free marketing! Ask customers to leave reviews or testimonials, or offer a reward scheme for customers who recommend you to a friend.
Good luck!
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
(website and blog) https://www.accountingaccidentally.com/