Regardless of what type of industry you’re small business is in, many find themselves struggling with finances at one point or another. This can be stressful for your company and put a strain on day-to-day tasks.
Luckily, there are a number of ways that money can be saved both for short-term and long-term purposes. Following these tips, you’ll have a cash reserve for new projects, emergencies, and company bonuses in no time.
Here’s our list of some easy, simple, and doable actions that almost all small businesses can take to save money.
1. Outsource Digital Marketing
As a small business, marketing is extremely important as it’s the pivotal way that products are advertised and how the brand gains customers. However, marketing can be expensive for small businesses.
Outsourcing your digital marketing is a lot more cost effective than organizing an in-house digital marketing team. Plus, with a team of experts taking care of everything, there’s no worry of a digital marketing strategy not bringing in leads and sales you need.
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2. Switch to Online Banking
Switching to online banking is a great way to save money as a small business. When you open a bank account online, you avoid a number of the fees that come with opening a bank account at the branch itself.
Plus, it also keeps the time you spend organizing the business’ banking at a minimum. Without the need to travel to and from the bank, time can be better spent elsewhere.
3. Use Contractors and Freelancers
Small businesses don’t always have the budget for a large full-time staff, which is why many opt for contractors and freelancers instead. Contractors and freelancers are often a lot cheaper to hire than regular staff.
Plus, you can benefit from only paying for the exact work that needs to be done.
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4. Avoid Paying for a Full-Time Office Space
The cost of running an office is extremely high, especially if you’re not making full use of the space if you have a small team of freelancers with flexible schedules. A good way to save money as a small business is to avoid paying for a full-time office space entirely.
By taking advantage of shared office spaces and hot desks, you will be able to pay solely for the specific office space that you need at any given time. Check out local coworking spaces in order to get the best bang for your company’s buck.
5. Buy Used Office Equipment
A lot of businesses upgrade their office equipment unnecessarily, which means there’s a lot of secondhand equipment that goes to waste. It’s often a lot cheaper to buy used office equipment and most of it will be in great working order.
Instead of paying a lot of money for something that’s brand new, opt for something that’s used but is just as good.
6. Market Using Social Media
Though marketing can be expensive, there are some ways to go about it that are much cheaper than others. Marketing on social media is one of the most cost-effective ways for a small business to build their brand and raise awareness as it costs absolutely nothing to open an account.
There’s no need to sign up to any costly websites as Facebook, Twitter, LinkedIn, Google+, and Instagram are all free to use! As a small business, all you need to do is find the time to post regularly and interact with followers. You can even ask employees to share posts in order to ensure that their friends and family are seeing what you’re offering.
7. Stick to a Strict Budget
It can be very difficult for a business to stick to a budget, especially when different departments are spending money on different things. In fact, every department will probably argue that their expenses are just as important as everyone else’s.
However, this can lead to wasted money and confusion as to where money is going. Instead, try to stick to a strict budget so that you know how every penny is being spent. Consider where money is best spent and ensure that the entire business sticks to this rule.
Though this may mean cutting funding here and there, it can help you to save money in the long run. As the business grows over time, you can think about reinstating expenses if they are necessary.
8. Use Generic Brand Goods
Most small businesses will have goods that they have to buy such as coffee for employees, bathroom products, and stationery. However, it doesn’t make any sense to spend a fortune on name brand items just because you assume that they are the best. Instead, stick to generic brand goods.
This will help you to save money while still buying all of the items that you need. Plus, they are usually just as high quality as the brands you are used to. The only difference? They’re a fraction of the price.
9. Allow Employees to Work Fewer Hours
Whether it’s a parent that needs to pick their children up from school a few afternoons a week or a student that would like Friday afternoons off to hang out with friends, consider allowing employees to work fewer hours if they would like to.
By doing so, you will cut down on the number of wages that you are paying each month. As long as all of their work is complete, the business itself won’t suffer, and in the end, you’ll end up saving.
10. Ask for Discounts Wherever Possible
As a small business, you are sure to have a number of other business partners that you work with. This could be a stationery supply company or a digital marketing company. Wherever possible, ask for a discount. You may be surprised at the number of businesses that are willing to offer a discount for longer contracts from new or long-term, loyal customers.
As you can see, there are a number of ways that a small business can easily save money. There’s no need to worry about a restrictive budget, as it’s all about using the money you have in the best way possible. Happy saving!
Sam Makad is a business consultant. He helps small & medium enterprises to grow their businesses and overall ROI. You can follow Sam on Twitter, Facebook, and Linkedin.