10 money saving tips for small businesses
One of the most stressful aspects of running a small business is saving money. Tracking your finances requires you to recognize areas where your business is overspending, or things that you need more money to afford. In order to run a successful company you’ll need to learn how to save money for your business. Check out our cost saving ideas for businesses, and watch your finances improve!
1. Use temporary space – Having a permanent office or storefront is great, but it can also bring in major costs that your small business may not be prepared to handle. Instead, consider working from home, renting a business suite or conference room or even working from your local community center. Of course, these options will depend on your industry, but if your bank account can’t handle monthly rent payments, there are usually other options to explore.
2. Join a business club or association – In addition to gaining valuable networking opportunities, many business organizations have a wide range of discounts to take advantage of. This can help your business save money, while also allowing you to meet other professionals who could potentially offer collaboration opportunities.
3. Get social – If your marketing funds are running low, and you’re in need of ways for your small business to save money, use social media to spread the word about your services. With the wide array of free platforms, many of which have groups and forums that you can post in, you’ll be able to advertise your business without spending a dime.
4. Go green – Recycling isn’t just good for the planet; it can also be prudent for your wallet. Little efforts like purchasing recyclable office supplies, unplugging equipment when the day is over and using less lighting can go a long way. There are other examples, dependent on industry, such as offering customers reusable bags if you own a retail business. Encourage consistent customers to reuse the bag whenever they purchase your items, and you won’t have to spend as much money on shopping bags.
5. Buy in bulk – It may seem easier to buy supplies whenever you run out, but buying in bulk will likely save you funds in the long-run. Plus, you’ll save valuable time purchasing items all at once.
6. Temporary workers and interns – There’s a chance that your entire staff doesn’t have to work full-time. If your company has more business during certain times of the year, hire temporary employees or interns during these busy periods. Student interns will be eager to gain experience, and you could offer them college credits instead of paying them. Temporary workers will be beneficial as well, since you won’t be using them during slower seasons.
7. Revise your budget – Nobody likes to cut back, but if you’re low on cash, it may be a necessity. Start by doing a “spring cleaning” of your expenses; determine what you’re spending your business’s money on, and cut out the non-necessities. That may mean giving up your weekly catered lunches, or break-room TV, or maybe even over-buying supplies. Regardless, these sacrifices will help your business get back on track financially.
8. Lease equipment or furniture – Many companies wondering about ways for small businesses to save money don’t realize that they don’t have to purchase every item they need! By leasing equipment, furniture or other necessary objects, you’ll save money without giving up the things your business requires.
9. Clean up your mailing list – Does your business use direct mail as a marketing tactic? If so, make sure you’re constantly updating your mailing list. Don’t waste funds sending mail to customers who have asked to be removed from your list, or individuals who have moved or are unreachable.
10. Look for deals and coupons – It may require effort, but gathering coupons and discount codes for places that your business makes purchases from can save you a lot of money. Sites like Ebates have various deals to choose from, so start looking!
Many individuals want to know how to save money for their business, but don’t know where to start. With these cost saving ideas for businesses, your small business will be able to set aside funds for the future.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.