As a small business owner, you know that every penny counts. Yet, it can sometimes seem like business expenses keep piling up no matter how much you try to cut back. If you’re facing the reality of ever-growing costs, here are seven ways to save money and keep your business running smoothly.
1. Use Lower-Cost Advertising Options
Advertising may be one of the first expenses to scrap when money gets tight. However, pulling back on the advertising budget could end up being a costly mistake. There are plenty of low-cost advertising options available that can be just as effective as more expensive options. Try using social media, organic content, or local directories to get the word out about your business without breaking the bank. You may also be able to establish partnerships with other local businesses where you can refer your customers to them, and they’ll do the same in return, all for free!
2. Leverage Credit Card Rewards
If you use an average credit card for business expenses, you could be missing out on valuable rewards. Many of the best business reward credit cards offer cash back or points you can redeem for travel or other business expenses. Finding credit card rewards that align with your spending will help put money back in your pocket without needing to overhaul your spending habits.
3. Keep Hiring in Check
As your business grows, you may be tempted to hire more employees to keep up with the demand. However, hiring too many employees can lead to high overhead costs and low productivity. Instead, keep your staffing levels in check and only hire new employees when necessary. Often, the team familiar with the workload is the best to advise if you really need to hire. If your current employees are not yet at capacity for their work week, you may be able to hold off on hiring until a time when finances allow it.
4. Automate Billing and Invoicing
If you’re still manually billing and invoicing your customers, you’re wasting valuable time and money. Plenty of software options available can automate these tasks, freeing up your time to focus on other aspects of your business. An automated invoice tool can also help you appear more professional to customers, further establishing your small business as legitimate.
5. Use Cloud-Based Storage
Storing data on-site at your business can be expensive, especially if you need to purchase additional storage devices. Instead, try using cloud-based storage solutions like Dropbox or Google Drive. These services are typically much cheaper than buying additional storage devices and can be accessed from anywhere.
6. Negotiate with Vendors
If you’re unhappy with the prices your vendors are charging, don’t hesitate to negotiate. Many vendors are open to negotiation, especially if it means keeping your business. For example, if you have a company cell phone plan or internet package, call the service providers and see if they’re willing to give you a better deal. You can also explore promotions from other vendors and switch if it will result in significant savings.
7. Review Your Insurance Coverage
As a business owner, you’re likely paying for some form of business insurance. However, you may be overpaying for coverage that you don’t need. Make sure to review your insurance coverage regularly and remove any unnecessary coverage to save money. But remember that before removing any insurance coverage, you’ll want to consult with an insurance professional.
The Bottom Line
Small business owners are always looking for ways to save money and keep their businesses running smoothly. In this post, we’ve outlined seven ways to do just that. Some of these tips, like leveraging credit card rewards or negotiating with vendors, may be familiar to you, while others, like using cloud-based storage or automating billing and invoicing, maybe new ideas. No matter what your business is or how long you’ve been in operation, it’s always a good idea to review your expenses and see where you could make some changes.