Many small businesses are doomed to fail within their first 18 months in operation. This is mostly due to entrepreneurs focusing too much of their energy and resources to increasing total sales; most small business owners don’t know that lowering their expenses is also important to maintaining profitability. It’s important to get theoretical advice on how to lower your business expenses. However, when your small business is struggling to survive, you need help from people who have been there and lived to tell the story. Here are some great money-saving ideas from a number of successful small businesses.
Cutting Traditional Advertising Costs
Small businesses ought to cut their traditional advertising budgets and instead focus on the myriad of low-cost alternatives like internet advertising and marketing. These cheaper options have made it possible for businesses to cut their advertising costs, yet still reach their target audience effectively. A number of companies have turned to this method and gotten great end results. For instance, Wealth Management Group’s Marissa K. Haynes recommends that small businesses should look to public relations as a cheaper and more effective form of advertising, like her company did. Other effective forms of low-cost advertising are the use of great SEO techniques and creation of YouTube videos that deliver huge traffic to company websites.
Reducing Energy Costs
Air conditioning and heating are necessary for any business. Interfering with these important aspects of office life could threaten your business from all angles, because they affect your employees’ productivity and your customers’ comfort. However, that doesn’t mean you cannot save some money on your energy bills. You can invest in smart programmable thermostats to help cut your energy costs without interfering with anyone’s comfort. A smart thermostat adjusts automatically to provide comfortable temperatures—based information it stores about your schedule. You can even conveniently manage some smart thermostats from your phone.
Looking for the Right Office Supplies
In order for a small business to maximize its profitability, it should invest in office supplies that make the most of its budget. Office supplies form part of the overhead costs of a business, so it’s important to get the best deal on them. However, “best deal” doesn’t necessarily mean the cheapest. Very low-cost items are likely going to be low-quality and won’t last for a long time, which means you’ll spend more money replacing them.
For instance, you could get binders at an office supply store, but they are more likely to break. They also will not have your logo or any sort of brand identifier on them. You’ll be much better off buying high-quality binders that you can personalize and use around the office for a long time. The same goes for any office supplies or even marketing supplies like post cards or brochures. This will save you a lot of money in the long run and ensure that your office supplies will last for a long time. You could also try to negotiate with your vendors in order to get office supplies at lower prices, which will save you even more.
In any type of business, employees are vital to getting the work done. However, employees cost companies money; paying their remuneration, renting an office space, and providing them with insurance coverage take a huge chunk of your business’ budget. A great idea small businesses can exploit to reduce their costs is hiring a minimum of full-time employees and outsourcing extra labor to independent contractors. This can also be done on an as-needed basis when the full-time employees cannot cover as much work as you want. There are many outsourcing websites where you can connect with great freelancers who will tackle your job at affordable rates.
Saving on Postage and Courier Fees
Another important area where a small business can reduce costs is postage fees. For example, you can send “large letters” as opposed to small packets, which cost more to post. You may even want to change your product packaging in order to fit within the required measurements for the large letter category. If your business spends a significant amount on conventional courier services, you can also consider switching to electronic file exchange services. You’ll have massive savings when you use quick, protected electronic file exchange services like Delivered Secure to send documents.
As the world economy gets tougher every day, small businesses must look for smart ways to survive. Adopting cost-saving strategies is crucial to your small business’ continued success. With the above tips, you are ready to take on today’s harsh economy and start saving money!