In the U.S. alone, over 627,000 small businesses open up each year. Many of those businesses either require a loan or some sort of ‘gift’ of money in order to get started. There is a lot that goes into starting your own business, and that includes putting a lot of money down upfront to make sure you have the things you need.
Unfortunately, nearly half of all new businesses fail in the first year. There are plenty of reasons why. But, one way you can keep yourself and your business above water is by cutting expenses wherever possible.
That doesn’t mean your business needs to be ‘cheap’. It means you need to be creative and resourceful with your funds. One of the biggest mistakes you can make as a business owner is not having clearly defined procedures. One of those procedures should be how your budget will operate and where you can save money.
With that in mind, let’s look at a few money-saving tips you can use to be smarter with your business’ finances. They might be small solutions, but they can add up quickly.
1. Save On Advertising
In today’s world of social media and digital marketing, advertising doesn’t have to blow your whole budget. In fact, some of the more expensive, ‘traditional’ forms of advertising are outdated and tend to get ignored by consumers.
Focus on inbound marketing as much as possible. Instead of throwing all of your money into Google ads and paid social media advertisements, hone in on your SEO efforts. Now, more than ever, consumers want to form relationships with the businesses they choose. They want to be able to see the humanistic side of companies. Don’t be afraid to show that through consistent engagement, relevant content, and behind-the-scenes looks at what your brand represents. You’ll find that you can quickly cut thousands of dollars from your advertising budget right away.
2. Choose Supplies Wisely
Whether your business is run remotely or you have an actual office or brick and mortar building, you’re going to need supplies.
While there are many office supply companies out there, it’s worth it to do your research and do a little shopping on your own. Office supply companies may not always offer you the best price. But, because they have a bit of a “monopoly” in the industry, they can often get away with it.
One of the best things you can do to save money is to buy things in bulk or look for wholesale prices. When it comes to items you know you’ll constantly need and use overtime, stocking up to save some money is a good idea. If you’re looking for printer ink, for example, try Supply Link USA instead of ordering through a traditional office catalog.
3. Outsource As Much As Possible
Every solid business needs at least one or two employees. But, having full-time employees on your payroll each month can get expensive very quickly. It’s not just a matter of a paycheck. You have to think about benefits, and all of the money, time, and effort that goes into hiring a new employee for the right job.
One way to avoid some of those costs is to outsource certain jobs whenever you can. Do you need some design work done for your website? Try hiring a freelance graphic designer for the job. Do you want someone to create weekly blogs for you? Instead of hiring a full-time, in-house writer, work with a contractor that you can pay on an “as needed” basis.
When it comes to outsourcing, there are rarely any strings attached. You pay for the work you receive, and can move on without having to keep them on board. The next time you have a similar job, you can either hire that individual again or choose someone else. If you’re just getting started with your business, this can be an especially effective way to save money.
4. Embrace the Rise of Remote Work
Telecommuting has already been on the rise over the last few years. But, thanks to the COVID-19 pandemic, it has become more of the norm for workers than ever before. While it doesn’t work for every type of job and every position, it certainly is something to consider for your business if you have the ability.
Allowing your employees to work from home (or doing so yourself) can save money on a building, utilities, supplies, and more. With so many free and inexpensive connection tools like Zoom and Slack, you can keep up with your team, no matter where any of you may be.
5. Make Small Cuts in Ongoing Expenses
When you’re trying to stay on a budget for your business, every penny matters. Undoubtedly, you’ll have ongoing expenses each month. So, from time to time take a look at those expenses and figure out where you can make cuts.
For example, are you getting the best possible price for your Internet service? Does your office really need two different music channel subscriptions? How much money are you investing in that vending machine in the break room?
Slimming things down a bit here and there can save you hundreds – or even thousands of dollars each year. You just have to pay attention to the things that aren’t completely necessary and be willing to make cuts as needed.
As a business owner, you’re undoubtedly passionate about what you do. You want your business to succeed and continue to grow. That’s the goal of any business that wants to last longer than a year! But, that kind of success likely won’t happen overnight. So, while you take the time to work through those growing pains and find success, it can become extremely important to save money wherever you can.
Keep these little hacks in mind as you move forward, and don’t be afraid to get creative when it comes to other ways you can save money without sacrificing the quality, products, or services your business has to offer.