As a small business owner, you are very aware of the value of the money you spend. Even when business is booming, it is important to stretch every dollar incase of an unexpected drop. Lowering operation costs whenever possible is a key to the success of your business. Misuse of capital is one of the main reasons why companies fail. In fact, 82% of small businesses fail due to cash flow problems.
Here are five creative ways for your small business to save money:
Buy Used Office Equipment
When you decide to move into an office space you should definitely look into purchasing used equipment. Check local newspapers and neighborhood Facebook pages for going out of business sales. Search for used furniture online and look through local thrift stores. New technology, desks, printers, and other office supplies are great items to purchase used. New shiny gear may look great but it can empty your bank account. Try to only buy what you need and delay purchases that can wait.
Use Freelancers and Contractors
Employees are an essential part of getting work done, but employee cost is high. Salaries, office space, and insurance can be the largest part of a small business’s budget. Until you need full time employees, freelancers and independent contractors can save you money. This way you will only have to pay for the work that you need from experts in your field. Eventually you will want to expand your workforce with loyal employees, although there is nothing wrong with outsourcing until you can afford to build your team.
Clean Up Your Mailing List
Direct mail is an effective form of offline marketing for local small businesses. However, having an extensive mailing list can be costly, especially if you have not checked it for errors or updates. USPS offers free mailing list clean-up services and will note any incomplete addresses. Try printing “address correction requested” on the front of your mailer to eliminate non responders or weak leads. You can also check local mailing services in your area for any possible group discounts or deals.
Go Green and Paperless
Using paperless methods to pay bills, check bank statements, and receive invoices will help you save time and money. Some banks and utility companies will provide financial incentives for opting to go paperless. Going green will also help you save on ink and paper costs.
Keep your equipment on a power strip and turn it off when you are not using it or invest in a smart thermostat. If you can reduce energy use, you can reduce the cost of your energy bills.
Reward Your Profit Makers
Sometimes spending money does save you money. Take a proactive approach to rewarding profitable behavior from both your employees and customers. Offer an occasional free lunch to boost employee morale and keep the work environment positive.
This could also mean offering a bonus to employees who meet a certain requirement for sales or production. You might also offer clients a free service or item when they refer new business to you. If you are spending money on people who do the best work for you or purchase the most product from you, you’re simply investing in a relationship that will ultimately bring more profit to your business.
Do you need help putting together a budget and making a long-term financial plan? PCS Debt Relief can help with our debt relief services that are tailored to your needs. We understand the burdens and stress that debt creates, and we’re here to help you every step of the way. Call (636) 209-4481 for a free consultation to achieve financial stability.