Saving money as a small business can be difficult, especially if you’re in a position where financial risks need to be taken to make larger profit margins. However, there are a number of ways you can reduce your business expenses without putting your efficiency or financial standing in jeopardy.
We’ve compiled a list of our best money-saving tips to help you trim any overhead costs that may be holding you back and inflating your budget. Let’s dive in!
1. Use the software that matters
Because there are so many different business and managerial software programs out there, companies can quickly find themselves shelling out hundreds per month on subscriptions that may not get any use. Take inventory of your existing paid-for software programs and survey how much use they get per week, per month, and annually. From tax software hosting to instant-messaging applications, there are a number of essential programs to sift through before you make a final decision on which programs can stay and which will go.
2. Hire capable employees with little work experience
While it may seem counterintuitive to voluntarily hire people with little work experience, you’ll quickly find that those who are eager to work will be the fastest to learn, adapt, and grow. Curious and capable people who are early in their careers are more likely to take your job offer with a lower-than-average salary just to get their foot in the door. As a small business owner, this is a great opportunity to mold them into the employee you need them to be. No demanding salaries to drain your resources, no problem.
3. Use own brand or generic brand goods
Thanks to amazing marketing campaigns out there, the temptation to buy name brand goods over generic brand may be the culprit behind your exorbitant spending. Stocking up your office with supplies ranging from kitchenware to technology can be an expensive venture, but opting for cheaper non-name brand goods that do the same job will help save you hundreds.
4. Cut down on meetings
Take a hard look at both your own and your employee’s monthly calendars—how many hours per week are spent in meetings? And how many of those meetings could convey the same information as an email? The sad reality of meetings is that while they are commonplace activities intended to encourage collaboration and communication, they often lead to long, drawn-out conversations about, well, nothing.
Plan your meetings with purpose and time them well so you and your employees can better optimize your time and get back to the grind without missing a beat.
5. Optimize your time
If you’re a busy small business owner, you know the stress of crunch-time far too well. Small business owners should always be prioritizing efficiency and directing their efforts toward optimizing the time spent in the office and at work. Making the most out of your workday means harnessing and practicing good time management habits. This may mean employing time-tracking programs to see where your time is going, or goal-setting to ensure you’re always on top of your workload.
6. Switch to the cloud
The vast majority of modern businesses (especially startups) are turning to cloud computing. Not only is cloud computing an excellent way to reduce both capital costs and ongoing IT expenses, but it’s also one of the safest and most secure with the right measures in place.
When you switch to the cloud, you eliminate any need to purchase or maintain expensive servers on-site. Additionally, the cloud allows your business constant access to the latest versions of business applications and the flexibility you need to increase your bandwidth or storage at your leisure.
7. Consider outsourcing
If you’re in the type of industry where you’re able to outsource some of the help you need, rather than hiring a brand-new in-house worker, it may be a worthwhile consideration. Whether it’s outsourcing your SEO optimization, content creation, or marketing campaign ideation, there’s a huge online market of freelancers eager to work and produce excellent outcomes for reasonable costs.
8. Budget better
To really get a better handle on your outgoing costs, creating an expense budget for your business will give you the insight you need to see where your money is going. Set a time at the beginning of each month to compare your business’ spending to the incoming funds to better forecast your future financials. Regular financial reviews will give you a bigger-picture scope into where you’re spending and where you can effectively cut down.
With these eight tips in your back pocket, you’ll be able to reduce your business expenses starting today. Did we miss anything? Let us know in the comments below!