Whether you are a startup or an established business, saving money is always a good idea. Inappropriate use of capital is one of the foremost reasons why hundreds of companies fail to succeed in their venture. Therefore, one of your top priorities as a business owner should be to stick to a budget and save money, wherever possible. Please remember that every little bit counts, and may make a difference in the long run. Here are 8 tips on “hidden” areas where you can cut down your business expenses significantly:
- Advertising: These days, this is one of the biggest cost components for any business. Without a sound marketing strategy, it is difficult to make an impact on the target market. However, the implementation of such strategies means spending thousands before seeing any return whatsoever. If you have good relationships with local businesses, you may consider working out a marketing strategy alongside them. This may allow you to share mailing lists, distribution channels, and even suppliers with businesses that offer complementary services or goods.
- Website Builders: Hiring a developer to build a website or online store can be an extremely expensive affair. All small business owners can make substantial savings by making use of website builders. If your business requires an online store, platforms such as Shopify can be of great help. These platforms not only help you save money, but are also easy to operate even without any technical expertise whatsoever.
- Office Space: With the advent of modern technology, a wide majority of businesses can now be run remotely. If you are not in the retail space, your objective should be to remain mobile for as long as you can. If possible, avoid leasing full-time office space because this can be extremely expensive. If you have any space available in your house or apartment, convert it into your office. By doing this, a part of your rent can be written off as a business expense.
- Selection of Phones: Be extremely careful and calculative while selecting the phone for your small business. All mobile service providers hate churn, and you must make use of this opportunity. Shop around for the best deals offered by the other carriers and ask your carrier to match them. Please remember that excellent deals are available on phones that are slightly back from the current models, offering more calling time and data for a lower monthly cost.
- Equipment Selection: One of the best ways to reduce cost is to purchase used equipment for your office. Starting from office chairs to monitors, used equipment stores offer all of them for a fraction of the price. In general, older equipment should work fine. Please remember that every time you spend money on something new, the net income of your business takes a hit.
- Contractors and Freelancers: It is important to build the core of a business with a group of loyal and motivated employees. However, hiring full-time employees can consume a large chunk of the working capital for a start-up. Therefore, until a business gains stability, the focus should be on making use of independent contractors and freelancers. This will also save you the time and money that you would have otherwise spent on employee onboarding and training.
- Volunteering: If you are an expert in your field, you must try to let the world know about it. One of the best ways to accomplish this goal is to volunteer as a speaker at industry events and conferences. This will provide your business with a lot of exposure without spending anything at all.
- Bartering: Don’t forget that every small business is in a cash-strapped condition just like you. Therefore, bartering for goods and services is a great option for two small businesses offering specific goods and services. For example, an accounting firm looking for designing services may handle the finances of its partner in exchange for the required designing work.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes.
By Sheena Jordan