7 Money-Saving Tips For Small Businesses
Partnered Content.
Saving money can be a big challenge for small businesses, and it’s not one that comes easy. Making every hard-earned cent go further is something most businesses owners need to worry about at the beginning. Fortunately, there are some great ways for small businesses to cut their costs and be thrifty with spending.
Image: Pxhere
Are you ready to save some money for your small business? Take a look at these seven money-saving tips.
1. Cut office costs
Having an office space is one of the most expensive outgoings for a small business and one that might not even be necessary all the time. Instead of signing a lease for an office, why not take advantage of the many benefits of flexible office spaces instead? Flexible office space allows you to use an office or meeting room as and when you need it, saving you money to put into other areas of the business. If you work alone, set up a home office to run your business, and if you work with others then encourage them to work remotely.
If ditching the office isn’t possible, then you should think of the ways to cut back on common office expenses. Relying less on paper, actively reducing your electricity bills and choosing appropriate phone contracts can all help reduce your business’ outgoings and save you money.
2. Cut your advertising costs
Advertising can be a huge expense for businesses, and the possibilities are endless for what you could be spending your money on. Instead of throwing your money at every advertising opportunity that comes your way, stay strong when the sellers call and put your efforts into free advertising instead. Some of the most popular ways to advertise for free include being listed on Google+ Local, sharing regular press releases and dropping flyers yourself.
Meanwhile, social media offers many free ways to advertise and market your products. Provided you can come up with a strong social media strategy; you can create a buzz online without having to spend a penny. Make your content visually appealing with photos and videos (made on a smartphone to save costs) and be sure to target the right audience to encourage the most engagement.
3. Ask for referrals
Asking for referrals can be a good way to generate business and get your name out there. Instead of using a lead generator or other type of marketer, try asking the people you know for recommendations for names of others who might be interested in your services. Word of mouth is a powerful tool and could lead you to find clients in unexpected places.
4. Keep track of your spending
Tracking your expenses can be forgotten about when you’re focused on getting your business off the ground, but large businesses are forced to monitor their spend regularly – which is something you should do too. Knowing how much you’re spending each month on different items can help you to identify areas for cuts, as well as highlight any discrepancies due to staff errors or kickbacks that might be happening.
Set aside some time each month to monitor expenses and get a clearer picture of where your money is going. Bringing in initiatives such as commercial fleet fueling cards can help you to keep better track of spending, and limit overspending by your employees. Give spending limits to your teams to help them stay on budget, particularly when claiming expenses for travel or client meetings.
5. Outsource
Small businesses can find it difficult to take people on full-time. As well as paying them a salary, you’ll need to consider benefits, vacation days and other costs that might not be affordable at this stage. Outsourcing work, therefore, is a great solution to help you get necessary business functions done without having to take on additional staff.
Some of the things you can outsource include your accounting, graphic design, marketing, press, IT, administration and lead generation. While outsourcing these areas will still cost you money, if they’re not full-time job roles for your business, then you will save money overall while benefiting from the expertise of professionals.
6. Build your own website
Web design has become easier than ever, and you don’t need to be a tech expert to build a website. Platforms such as Squarespace make it easy for you to build a professional-looking website, and all you’ll need to pay is a monthly fee to keep it active – a cost you would have had to pay anyway. While there’s no denying that web developers and designers have great expertise in this area, while money is tight, you should look to other ways to develop your online presence.
Building a website with no experience needn’t be as difficult as you think, and provided you have an idea of how you want your website to look – there are ways to get it off the ground. You can always buy a template and mold it to your brand and business for an easy way to get a professional-looking website in a hurry. Over time, you can look for ways to improve your website design and potentially outsource your web management as the demand increases.
7. Don’t be afraid to buy second-hand
When it comes to small businesses, buying brand new equipment isn’t always feasible. Your budgets will be a lot smaller than those of larger companies, and you need to be realistic about the things that you’re buying. Investing in second-hand tech or office furniture is a good way to cut your setup costs, while also preventing waste. Over time you can work up to replacing items for new or even try leasing equipment instead of buying outright. Look out for second-hand or refurbished goods and benefit from the same high-quality for less.
There are many ways your small business can save money, helping to reduce your outgoings and help you make the most of your profits. While it’s not always easy to be frugal, it’s important that you spend sensibly for the sake of your business. Why not brainstorm your own money-saving ideas to help you reduce spending for your small business?
