Small businesses often operate on a shoestring budget and the owner may not even be taking much of a salary, if at all. This means you have to always be looking for creative ways to save money. Here are many excellent ways to cut costs or keep them down and still run a successful small business.
Outsource instead of Hire
If you’re not at a point where you can afford specific employees, you can outsource. Many freelancers will help with things such as content, web design, graphic design, marketing and even reception. You can hire writers for your blog, virtual receptionists for your incoming phone calls and many other freelancers at a much lower cost compared to a full time employee.
Trade Services and Products
Instead of spending cash for things you need, consider the business barter system. This is a great way to trade services with another business and keep your budget under control.
Buy Used and Recycled
You may be tempted to purchase equipment, furniture and even printer cartridges that are brand new. However, if you go to auctions and buy used supplies, you can save a large amount of cash. The same goes for buying recycled printer cartridges and other refurbished items.
Sales Only on Commission
Many small businesses only pay commissions and bonuses to their sales force. This ensures you only get highly skilled sales people willing to work hard to earn their money.
Compare Shipping Rates
Work from Home Instead of an Office
Even if you have a few employees and have the need to meet occasionally, you can telecommute to save a massive amount on overhead. Businesses needing to store inventory can do so with a storage unit instead of an expensive office space, and all employees can work from home. This can help you save money and you can still appear very professional with the help of a virtual receptionist and other professional freelancers.
Other ways to save money with your small business include:
- Get all the possible tax deductions
- Always market with business cards when you are out and about
- Avoid business cash advances
- Make bank deposits earlier in the day
- Consider ordering checks from a printing company instead of a bank
- Pick up orders from suppliers close to you instead of having them shipped
- Partner with other businesses and buy in bulk
- Ask for discounts for early payments
- Avoid paying late fees by paying on time or early
- Compare prices on all jobs with a minimum of three bids
- Join a business association for discounts
- Check Groupon for deals on things you need
- Reduce your energy cost with energy-efficient light bulbs and a smart thermostat
- Cut business trips whenever possible and opt for cheaper flights and hotels
- Piggyback Marketing by including advertising in with invoices and other items you need to send
There are many creative ways to save money with your small business. Pick a few ideas and start implementing them immediately to see how much you can save this year.