What business doesn’t want to save money? Running a company demands a lot of expenses in the form of salaries, operating costs, and delivering products and services. If you’re a small business and are looking for ways to save money, check out the tips below.
Outsourcing is a highly cost-effective measure for a small business. Salaries are one of the biggest expenses, which is why outsourcing some of your services can be an efficient cost saver. Whether it’s payroll, marketing, admin, or your janitorial services, keeping full-time staff to a minimum while outsourcing important processes can save both time and money.
Buy Used Equipment
Did you know you can save up to 60% of your expenses by purchasing used equipment such as photocopiers, office furniture, and IT equipment? If you’re unsure about where to buy used equipment, online classifieds, auctions, or regular office furniture stores are good places to start.
Paper can add to your costs, especially since businesses often use inordinate amounts of it. With so much happening online these days, however, going paperless is easy. Not only will you save tons of money on paper, but your processes will be more efficient. Rather than sending out paper letters or invoices to your clients, a simple email will suffice.
Negotiate with Vendors
Just because your vendor quotes you a price, it doesn’t mean you have to stick with it. If you want to establish a long-term relationship with your vendors, it’s in their best interest to negotiate lower prices so they can keep you as a client. Therefore, don’t shy away from a discussion about adjusting the prices. This applies to everything from office supplies to your monthly electricity bills. Doing so could save your company hundreds of dollars each month.
Clean Up Your Mailing List
If direct marketing is a must for your business, it’s a good idea to clean up your mailing list. Too often companies send out invoices or marketing materials to addresses that are incorrect or no longer exist. While you want plenty of people to market to, having an overly long mailing list will only hurt your budget.
Some delivery and mail companies provide free mailing list clean-up services and will help you find any wrong or incomplete addresses. You may also want to add an “address correction requested” check-box option on your direct mail to capture non-responders or weak marketing leads.
Embrace Remote Working
Since the start of the Covid-19 pandemic, many businesses have shifted their operations online. While this was inconvenient at first—particularly for those businesses who weren’t used to working remotely—many have realized the cost-saving benefits. While remote working doesn’t work for every business, doing this partially can save a lot on office rental and operating costs.
If your business tends to have unpaid credit balances at the end of each month, it’s worth comparing your options. Find the best cards with low interest rates and avoid annual fees where possible. Sometimes credit card companies will even waive the annual fee or reduce the interest if you ask. While you’ll need a good credit rating, asking could save you money in the long run.