Saving money while doing business can be tricky, and especially if you are a small business, then this is the ultimate trick to learn. According to recent survey, 8 out of 10 small business enterprises fail miserably within the first 18-20 months. While many companies focus is to increase the sales pitch, lowering the expenses can also be termed as equal importance while trying to achieve a stable position in your business. In this article, we are going to tell you about the best 10 money saving ideas if you are an owner of a small business enterprise.
1.Find a cheaper way or bulk in buy:
The first and foremost technique to cut short your money while starting the business is to find cheaper ways to buy your products for your business. There are many vendors and places where you can find your desired product in whole sale price which could save a lot in your product investment. Compare price variations and choose the perfect place which offers you the product at cheapest available price.
There is another way to cut down which is buying your product in bulk quantity in one go. You can save around 15% of your money each time you do a bulk purchase for your business. But before opting to choose this option, ask yourself one important question. Does this bulk buy necessary or not? Do remember that you need to have a ready place to store all your purchased goods if you choose this option.
2.Utilize Open source and Cloud computing:
Every business needs some software. Instead of buying million-dollar software’s, you can find an open source or cloud version of it which can save a lot for you. Many small business companies have started to use cloud-based software and services like Salesforce, Staffmate and PayCycle which are renewed annually instead of needing to purchase and maintain expensive in-house software.
3.Go green to save the green:
Going green is not only a great move, but also a smart financial move which could save a lot to your company. Whether it is a home business, storefront or office, doing simple moves like turning off equipment when not in use or buying those compact fluorescent bulbs, you could save around 30% of your electricity bill per year.
4.Give chance to smart inexperienced people or opt for freelancers for non-core work:
Experience isn’t everything and sometimes can be costly too. Though Hiring smart people who are inexperience in the field can be tricky and sometimes, time consuming, but they can bring in the much-needed benefit of having an employee who are up-to date on the technology and eager to learn more.
Other ways to cut down the money is to hire micro contractors or freelancers. These people are independent employees who are easy to hire and cheaper to keep them engaged to work provided that you have an enforceable freelancer contract to maintain smooth relationship on both sides.
It’s important not to over-rely on these micro contractors as they are less likely to be loyal, but for non-core work, instead of hiring a full-time employee, these freelancers or micro contractors can serve as the secret weapon to keep your business cost under control.
5.Reduce Paper use and recycle:
Another way to save money is to reduce your paper use. Just like reducing water usage and energy, cutting down the usage of paper is not only good for your company, but also for the environment. There are many ways to reduce your paper use and some of them are given below:
- Set your printer to default to print on double side of the paper.
- Reuse waste paper for taking down simple notes
- Tighten margins and shrink fonts on printers
You can also recycle certain equipment like Printer cartridges, cans, bottles, mobile phones, batteries, etc., and most recycling centers will offer you money which can bring a source of income to your business.
6.Use your office space more effectively:
Offices are getting more efficient these days. Collaborative workstations, multipurpose rooms (Using same room for different purposes) can help you to cut down your office expenses. Having a “virtual office” is another great way to save money by eliminating the need for a full-time office. Particularly if you work from home or spend much of your time on the road, a firm such as Cloud Virtual Offices can provide everything from a professional address and phone service to meeting rooms when you have important client meetings.
7.Know your customers:
A simple but effective way to reduce unwanted cost is to know what your customers want. Think this in terms of your business. If you know your customers behavior well enough like what they want, how they respond, and how much they spend, you can eliminate all the other unwanted options from your budget. Eliminating useless options not only saves you money but also produce more profits from what you put forth.
8.Use own brand or generic brand goods:
People always have the temptation to go for brand names while opting for products or services, but its always never worth the money. If you are looking at buying goods or products for your business, just opt for generic versions or start your own-brand. The package box may not look pretty, but the product will be the same as the brand one.
9.Cut down meeting timings:
This is easy and can be a crucial move in cutting down the overall expenses of your business. Check out how many hours are spent per week in meetings? If you can cut short this time and utilize the same for improving the production, more likely, you can bring more benefits to the company.
On the other hand, you don’t need to attend every meeting of the client, rather, you can conduct a virtual meeting which could save around $600 per year on your travel expenses alone.
10.Remember that everything is negotiable:
Do remember that everything in this world is negotiable unless that is clearly spelled out in the contract. Entrepreneurs around the world are looking for business people who can collaborate with them in doing business. You can often find discounts, bonus and referral codes but, you must ask for them to enjoy the benefits.
Starting and running a successful business is always difficult. But trimming some financial fat can certainly help to save money especially if you are a small business. If you think that you have out smarted everyone by plucking all the low-hanging fruits, it may be the right time to take another look. It shouldn’t cost you more and who knows, it could bring it some fruitful payoff in time.