As a small business owner, you know that your success comes down to the bottom line. How much money you make each month versus how much you spend. Every extra dollar spent is money out of your pocket.
More importantly, if you’re spending more money than you’re earning, you’ll quickly be out of business. Don’t think it can’t happen, nearly 50% of small businesses fail by their fifth year.
We’re not trying to discourage you from pursuing your business dreams, we just want to make sure you’re being financially savvy.
Keep reading for our top five cost-saving initiatives.
1. Compare Prices and Buy in Bulk Whenever Possible
When making purchases for your business, always compare and contrast prices. For certain materials, supplies, and equipment, you should consider buying second-hand. If you can’t buy second-hand, buy generic to save money.
However, learning how to save your small business money can also come down to buying in bulk. For supplies and materials you use a lot of, you should buy them in larger quantities. This includes things like paper, ink cartridges, shipping labels, toilet paper, hand soap, etc.
2. Learn How to Do Your Own Digital Marketing
It will probably take some time and dedication, but one of the best small businesses money-saving tips is to do your own marketing and PR work. Learn how to improve your website and perfect search engine optimization. Run your own social media profiles and engage with your followers.
Just like any skill, the more you work at it, the more efficient you’ll become.
3. Shop Around for Professional Services
Cost-saving initiatives also include learning how to shop for the most affordable services. As a small business owner, you’re going to need things like insurance, building maintenance, marketing, accounting, and other services outside your wheel-house.
As noted above, some of these you can learn to do yourself. For the other services, however, you must shop around for the best prices.
For example, don’t buy the first insurance policy you find. Talk to other agents to find your best and most affordable option.
4. Try New Things
Saving money means trying new things. They might not all work, but you’ll never know until you try. And the cost-saving initiatives that do work will pay off in the long run.
For example, there’s an interesting workplace idea called hot-desking that has shown to save businesses a significant amount of money. Wondering “what is hot desking?” click on the link to find out.
You could also begin your company in a co-working space that’s shared with other startups or small businesses. This will save on overhead costs and allow you to grow into a bigger space as your business takes off.
We also recommend bartering for services or products when possible. For example, if you owned a small gym, you could offer free training to a contractor in exchange for their labor.
5. Save Energy
One of the biggest costs a business has is energy-related. Between electronics, heat, and air conditioning, a business spends hundreds of dollars a month. You can learn how to save money at your small business by reducing your energy consumption.
Maximize natural lighting and switch to LED lights that use less electricity and last longer. Use Energy Star rated appliances and electronics. Send messages digitally rather than printing documents.
Looking for More Cost Saving Initiatives?
Are you looking to save money around your business? If so, we hope you implement some fo the cost-saving initiatives above. However, there are many more ways to improve your business and cut back on costs.
Our blog is dedicating to helping business owners like you maximize their potential. Be sure to check out some of our other articles before you go!