7 Money-Saving Tips for Your Small Business
Everyone has heard of the old phrase, “A penny saved is a penny earned.” But, in your small business, a penny saved can be MORE than a penny earned. In business, when your money is “earned” (revenue) it is actually the result of a lot of money spent in order to get that business; i.e. salaries, marketing, taxes and many other overhead expenses.
And moreover, money you may have sitting in the bank, isn’t earning you much, if anything, these days either. That is exactly why saving pennies and dollars where you can, will not only put that money back in your pocket and earn you a great return by not spending it in the first place.
Here are 7 money-saving tips that you may not have thought about:
1) Go Green. Going green means a lot of things today. But for your small business, it means some savings in your pocket. Consider the cost of ink and paper and then think of ways you might be able to go paperless. Possibilities include emailing receipts to customers, scanning documents instead of printing, and paying your bills online instead of mailing. Consider additional ways to go green by saving electricity. Plug your computers and equipment into power strips and turn them off when not in use. Use more efficient lighting like LED bulbs and fluorescent tubes to be energy efficient and save on the monthly electric bill.
2) Review your operating expenses. A lot of times, it is the day-to-day expenditures that get overlooked. Do you have a coffee service for your employees, or do you utilize an office cleaning service? Make sure you explore options with multiple vendors to be sure you are getting the best price. Are you taking advantage of buying supplies in bulk? Check into buying supplies at a bulk merchant like Costco or Sam’s Club.
3) Join a trade association. By joining a trade association relative to your business, not only will you be able to benefit from the association’s research and recommendations for your market niche, but you may also be able to take advantage of relationships with vendors that the association has developed over the years.
4) Outsource as much as possible. Employees are essential to getting work done, but the costs of having those employees--from salaries, benefits and insurance, and even the amount of office space--can be the single biggest part of a small business’ budget. Consider the use of independent contractors on as as-needed basis. If you have extra/seasonal work that doesn’t warrant a new hire, consider outsourcing, or micro-contracting on a limited basis. There are several online sites where people are looking for this type of work. Two examples are www.Elance.com or www.oDesk.com.
5) Cut down on employee time. Along the same lines as outsourcing, this tip may sound odd at first. Unbeknownst to you, you may have employees who would prefer, or even need, to transition to part-time work. Many employees might be afraid to bring this up to you themselves; but if you make it known that you are open to exploring this option with your employees, you might get some takers. This would save money for your business, not only in wages, benefits, and insurance, but also allow you to keep good employees without losing them or their productivity.
6) Live in the cloud. Instead of paying for and maintaining expensive software to run your business, you might consider using cloud-based software. Many options exist to utilize enterprise software and data storage on an annual pay-per-user basis, rather than needing to purchase and maintain expensive software in-house.
7) Use interns and inexperienced help. This is also a tip that may seem counterintuitive. Most business coaches will recommend hiring the best and most experienced employees you can find. However, there is something to be said for hiring capable, inexperienced workers and train them on lower-entry positions and teaching them about your business your way. People with little experience are looking for entry-level positions, and the salaries that go with them, thereby saving you money. You might also consider using interns who are looking for experience and ways to build their resumes. Reach out to local schools to find marketing or business students that might be interested in working in your business.
By implementing these money-saving tips, and by always being on the lookout for ways to save, your pennies can earn you much more in the long run. Some of these tips might not seem like a lot at the start, but there is another old saying that holds true, “Take care of the pennies and the dollars will take care of themselves.”
Numbers by Victoria offers virtual bookkeeping services and other financial options for individuals and small businesses. Since our services can be performed virtually, we’re able to work with people all over the United States. To contact Numbers By Victoria, or to learn more about our bookkeeping services, please visit: www.numbersbyvictoria.com.