Small business owners are looking for ways to increase profits, save money, and improve efficiency in a struggling economy.
The good news is that you can find plenty of ideas in books and articles. However, instead of covering the obvious ones, you need to find new and creative ways to save in today’s economy.
Here are nine ways your small business can save money:
Cost-Saving Ideas for Small Business Owners
1. Negotiate With Suppliers
Suppliers are generally in business for themselves as well. See if you can get a discount for paying early or all in cash, or for buying in bulk. If you can come to terms that suit both parties amicably, then you’ll have secured yourself great and valuable service, and they would have locked in a returning client.
2. Shop the Best Deals
It’s worth taking the extra time to shop around if you can find not just the cheapest deal but the best value. Just like you’re budgeting your money, budget your time to accommodate the best business practices like shopping around. This will benefit you down the line when you’ve found the right transactions most beneficial to your business.
3. Freelancers and Contractors
At the beginning stages of your business, you may find that you’re just about ready to hire on extra help, but are worried that this would be financially taxing on your budget. Consider working with freelancers or contractors for projects at a time, instead of committing to hiring a full-time employee. You’ll save on payroll, benefits, and such, until a time in which you are ready to commit.
4. Work at Home
With the digital age being what it is today, most businesses are started out of people’s homes; most businesses aren’t brick and mortar like they used to be. If you can do this, take advantage of this situation for as long as you can!
You’ll be saving on all three of the main expenditures (e.g. rent/mortgage, transportation, utilities). If it’s indeed your dream to have a storefront, then you can recoup all of that money you saved on the main expenditures into a savings account dedicated to your future headquarters.
5. Partner With Other Small Businesses
Partnering up with another small business harps back to the tip of being open enough to ask for help. In this case, is it possible to team up with another business to share the cost of advertising and marketing deals?
Are there bundles that you’ll be able to afford if you split the cost with someone else? Find another small business similar to yours in value, size, and expectations. This way, you can build a cohesive long-term business partnership.
6. Use Social Media
You most definitely don’t need to be told that you should optimize your social media for marketing aspirations. Use it with a bit more intention wherever you can: Join communities and look for mentorship programs. You can leverage these platforms to form and nurture relationships you wouldn’t have otherwise been able to start.
Additionally, monetize your presence online wherever you believe is ethical. Do a bit of research on affiliation opportunities or sponsorships, as well as ads. A strong digital presence will not only help to start great business partnerships but will encourage foot traffic if and when you decide to open a real space.
7. Take Advantage of Tax Breaks
Use business expenses to your advantage; be sure to record and claim everything you’re entitled to. Tax efficiency is one of the number one ways to put more money back into your business.
For example, a small business that hires a person who happens to have a disability can receive a tax break. This is your opportunity to open your business up to a new market and service a community you might not have otherwise thought of. What other communities whose business you can earn require your services?
8. Transfer your credit card balance to a 0% credit card
It is a great idea to transfer the debt balance from one card to a 0% intro APR card to save money on interest charges and pay off the debt. As an example, if you transferred a $5k balance from a credit card with a 17% APR to a credit card with 0% intro APR for 15 months, you would save $862 in interest alone!
9. Lease equipment
When you want to avoid the upfront costs associated with purchasing equipment, consider leasing. In addition to conserving your company’s money, a long-term lease can help you avoid costly repairs, upgrades, and maintenance.
In this economic environment, it is important to look for ways to save money, whether you are a start-up or an established business. Put a cost-savings plan in place for your business and then act as soon as possible.