Are you looking for simple ways to cut costs? These tips will help you make a noticeable difference to your bottom line.
1. Reduce staff costs
Without a doubt, having someone to help deal with routine tasks can improve productivity. The problem is that hired help is often too expensive for small business owners.
Hiring a qualified remote worker is a cost-effective way to bring on some much needed support for administrative tasks.
2. Think thin
Small business owners are often advised to trim down their offerings to a niche market. You can save money by applying that same thinking to how you do business.
For instance, subcontracting can allow a service-based business owner to offer other services. Taking on more work and paying someone to do it at a lower rate than you charge your clients will increase capacity.
3. Network more
Forget expensive print ads and direct mail campaigns. You can save a ton of money by getting the word out about your business by connecting with your target market:
- Co-host an event with a business owner whose customers will be interested in what you do.
- Connect with your local Chamber of Commerce.
- Attend business networking referral events.
- Run a contest on social media.
- Sponsor a community fundraiser.
- Networking at trade shows and industry events is another great way to meet potential partners and customers without breaking the bank.
4. Embrace cooperation
Often businesses buy in bulk to save money. Unfortunately, this can backfire if you’re struggling to maintain a positive cash flow or if you don’t use the supplies you bought.
A better strategy is to only buy what you need and share costs with other small business owners. Cooperation is becoming a buzzword for good reason. Forming alliances with businesses can lead to lucrative partnerships while saving everyone some cash.
5. Save time with technology
- Try free collaboration tools like Google Drive, which is also a great way to cut down on the cost of paper.
- Use virtual meeting technology to save on travel costs when connecting with clients in different time zones.
- Sign up for a free trial of bookkeeping software to see how automating routine tasks like invoicing and payroll can improve accuracy.
6. Review your business expenses
- Regularly track rising costs and find ways to reduce unnecessary spending.
- Always pay vendors and lenders on time to dodge late fees, interest, and a poor credit rating.
- Shop around for the best deals on everything from software and financial services to office supplies and inventory.
- Hold off on renting space for as long as possible. Encourage staff to work remotely, meet clients in coffee shops and remember: home office space is an eligible tax deductible.
What will you do differently to cut costs for your small business today?
