Saving money and can be a little difficult for small businesses. You are just starting, and your business is still in its early stages. So, money might be scarce. According to Bloomberg, 8 of 10 small businesses crash within its first 18 months.
While businesses with financial stability focus more on increasing profit, small businesses still need to learn how to manage money to build their way to financial stability.
Are you bothered about cutting cost for your business? Well, take your time to go through these cost-cutting hacks for small businesses.
9 Cost-Cutting Hacks For Small Businesses
1# Reduce Your Office Costs
Based on the real estate situation where you live, you should take up the opportunity of moving your office space to less expensive areas.
Better still, if your business is such that it does not really require a specific separate location for its administration, you can just operate your business from home or consider going mobile.
Apart from savings, conducting your business at home or through mobile links will largely cut down the money you will spend, utilities and for paying office space. The money saved can be reinvested into your business which will help you boost productivity.
However, if you are considering having a workplace at home, A little bit of research is necessary. There might be laws preventing such business in your neighborhood and also, take time to consider your family.
2# Share Office Space
Small business owners can share their office space with a different business owner of a similar one. This is a marketing strategy you can maximize.
Renting an office space can be expensive, especially in commercial cities. You can split the cost when you share and only get to pay half of the initial sum.
This will cut down costs and boost business growth. The money saved from sharing the space can be diverted into other profitable avenues for the business. This method is applicable if it is necessary for small business to even own office space at all.
3# Be a Tech-Savvy
Over time, technology is always used to save time, but you can also use it to cut costs for your small business. Technology in your business can undertake certain responsibilities that you would have hired more people to do.
For Instance, you can learn how to use Excel, valuation, and basic accounting skills that are needed for your business instead of recruiting professionals to do it for you. This is just a single example of how beneficial technology can be to your business.
There are other benefits of technology for your business. It will save time and money that can be channeled into other aspects of your business.
4# Buy Fairly-Used Equipment
There is no specific law that says you must purchase only brand-new equipment. Why not buy fairly-used equipment when it is right for you to do so. It all depends on the type of business you run. Your items can include:
- Computer, copier, printer, smartphones, tablets etc.
- Company cars and delivery trucks
- Storage bins and drawers
5# Minimize Your Tax Bill
This is likely to be the best way to improve your business. You must learn how to keep records of all your business expenses.
Maximizing all deductions available for your business can help to reduce your payable tax. Ensure you save receipts to keep track of all expenses.
6# Reduce Staffing Costs
Wherever possible, make use of your relatives in the business. Your cousin might be available to help you with your business.
This will save you the expense of hiring an outsider to do it. Knowing about the business is an excellent experience for your children, and it helps keep money in the family.
Hiring Interns and contract workers is another way to save on employee cost, which saves money spent on taxes.
You have an Unemployed graduate living with you; give him a job in your business. Through this, they have good work experience and build self-esteem.
7# Use Your Time Wisely
Most business owners give away their time in exchange to save money. Efficiency starts with knowing your goals.
Be organized and have a plan. Successful entrepreneurs abide by a morning routine that sets the day for productivity. Finally, outsource and use tools that will help you manage your business.
8# Eliminate Unnecessary Perks
Large companies offer bonuses and benefits to their staff. As a small business owner, you don’t have to compete with them. Most employees sincerely appreciate little perks.
It can be a time away from work. Try skipping the festivities and give everyone a small bonus instead. This way, your workers will spend more time with their families.
9# Know That Everything is Negotiable
Unless it is clearly stated in a contract, all listed prices are usually negotiable. You can still negotiate even if you don’t have full advantage of a small business network. Entrepreneurs look out for each other, mentioning that you own a business is enough to get a discount.
For example, when getting a new office, ask the interior decorator if they offer bonuses for new clients. If you are buying anything in bulk at once, you’re likely qualified to get a volume discount. But you must ask for a discount.
Reducing cost is all about thinking outside the box. You need to look out for ways to cut costs while still making profits. Follow these business hacks diligently and save up some cash for your business.
Author Bio: Kathrin Garner is an enthusiastic journalist and writes article on social issues. As an activist, she takes part in FV KASA program, which is a discussion platform on the relevant cannabis topics. So, if you want to know the best how to detox your body and hair follicle detox in a short time, feel free to contact her. Also, she is a volunteer at Marijuana Detox. She searches for current issues, and writes about it to a wide range of readers.