Saving money is important for any business, but especially for a small business. Most small businesses are run by hopeful individuals, who have to watch every business expense. These businesses should find any way they can to cut costs and save money. I have run quite a few different businesses, and these are a few things I have learned.
Purchasing Supplies:
All companies need supplies. It may be a large quantity, or just office supplies. No matter how much is needed, you should find ways to cut some of your costs.
Most small businesses opt to purchase their supplies themselves. It may take a little more time, but doing this will cut a lot of your costs. Here are a few things that you can do to cut costs with your business supplies.
-Schedule your shopping. Retailers have very large discounts on certain items, during a certain time of year. Learn the retail clearance seasons; you can save a lot if you purchase items you need during this time. This will also help you if you run a retail business.
-Sign up for frequent shoppers’ programs. Using these programs can save you both time and money. The companies offer discounts, coupons, and special offers for their customers. Most of the companies send these items through email, or snail mail. Either way, you do not have to go to the store to see their offers.
-Use coupons. Coupons work just as well for small businesses as they do for homes. You will need cleaning supplies, drinks, or other items. You can find coupons for all of these, if you look.
-Shop around for sales. If you are going to be purchasing supplies soon, look at sales papers. Compare prices on items you will be in need of. Choose a couple of stores that have the best prices, and get all of your supplies. You do not want to go to numerous stores, but you do want to get the best prices.
-Keep an accurate inventory of your supplies. You should not purchase items you do not need. If you keep an accurate inventory, it will prevent you from purchasing unnecessary items.
If you are going to use a supplier to purchase your items, ask about discounts. They may offer discounts for early pay, bulk orders, or frequent orders. Be sure to ask before you place your orders.
Telecommunications and Utilities:
Telecommunication and utilities can be a very large expense in a small business. Saving money in this can actually be easy.
-Turn things off. If you are not using something, turn it off. This goes for lighting and equipment. Use timers or sensors for your lighting. Purchase power strips, and connect items that can be shut off easily. This will allow you to turn off the entire strip, instead of each item.
-Bundle and negotiate: Most companies offer bundle packages. Compare company’s prices, and determine which is better suited for you. Never settle on the price they give you, try to negotiate the price down even further. Remember to watch your bill, and call every few months to ask about current offers they may be having.
Employees:
Small businesses do not need a lot of employees. Consider using temporary help, freelancers, or commissioned help. Using these options can help with your expenses. It gives you the option of using your help when you need it; therefore it decreases the amount of people you are paying when the level of your business does not allow for it.
Never hire someone for something you can do yourself. It is very cost effective for you to do the cleaning, and take out the trash. If you insist on having someone clean, do it less often. Most commercial cleaning companies offer a monthly thorough cleaning. They clean everything, and charge a lot less than doing it a few times a week.
Banking:
Find a bank with the best offers. You can find a bank that offers free accounts, high interest rates, and special incentives. Most banks are trying to get business, and will work with small businesses to increase their profits.
Before you purchase your checks from the bank, compare prices at printing companies. Some offer a much better price, and you may get discounts on other items if you use them often.
Compare incentives on credit cards before signing up for one. You want to be sure you have the best interest rate and special offers available. I would suggest using a merchant’s card; you may get better offers.
Miscellaneous:
-Never print items, unless you need a hard copy. You can easily store items on your computer, or a flash drive. This will save money on paper, ink, and utilities.
-Purchase recycled ink cartridges from retailers. The recycled ink cartridges are a fraction of the price, and work the same.
-Keep excellent records for everything. You should have records for expenses, accidents, employees, and insurance. Keeping good records may save you a lot of time and money in the long run.
-Ship items in bulk, and early in the day. Shipping in bulk will save you time and you can possibly get a discount. If you ship early in the day your items will processed early, and you may not have to pay for faster shipping.
-If you have work that needs to be completed at your business, get bids. Something may break, or you may want to add something to your building. Either way, get at least three bids. This will ensure that you are getting the best deal.
-Search for discount marketing ideas. There are many different ways to promote your business, without paying a fortune.
-Search online for software, or forms. Why pay for items if you can get them for free. You may be surprised about how much you can get for free.
Saving money may seem like a lot of work in the beginning. If you have been in business for a while, look at your expenses. Can you use some of these steps to decrease that amount? If you are just starting a business, think about where you want your business to go. Can you use some of these techniques to help your business?
Saving money in some areas can increase your profits. It can also free up some of your money for other projects. Look at your expenses realistically. Consider what you can do to make your expense amount decrease. You may be surprised by how much you can save, and how easy it can be.
