Table of Contents
- 1. Cut office expenses.
- 2. DIY Your Content Marketing
- 3. Review all expenses, even the little ones.
- 4. Find a cheaper way.
- 5. Buy in bulk.
- 6. Use open-source software.
- 7. Create partnerships for marketing.
- 8. Get sponsors for events.
- 9. Pay yourself.
- 10. Invest in growth.
- 11. Don’t be afraid of loans.
- 12. Keep good business credit.
- 13. Have a good billing strategy.
- 14. Spread out tax payments.
- 15. Set up good financial habits.
- 16. Get sponsors for events.
- 17. Amend recent tax filings.
- 18. Calculate ROI on your largest expenses.
- 19. Supplement your main income stream.
- 20. Use Original Equipment Manufacturer’s Products
- 21. Cancel Recurring Services
- 22. Ask the people you know for help.
- 23. Make a special TV appearance.
- 24. Offer expert advice.
- 25. Take a look at accounts payable and accounts receivable.
- 26. Rethink your advertising strategy.
- 27. Save at least 5% every month.
- 28. Automate Your Taxes
- 29. Turn Off Your Computers
- 30. Get a suite deal.
- 30. Get a suite deal.
- 31. Use a project management tool.
- 32. Reduce or eliminate office space.
- 33. Eliminate or cut down on in-person meetings.
- 34. Outsource staff instead of hiring W-2 employees.
- 35. Make technology work for you.
- 36. Streamline your HR functions.
- 37. Take advantage of tax deductions and exemptions.
- 38. Don’t Pay Full Price.
- 39. Smart Website Design
- 40. Use the Cloud
- 41. Embrace online tools
- 42. Regularly Revisit Your Budget
- 43. Buy Generic or Used Items
- 44. Reduce Paper Consumption
- 45. Track Every Transaction
- 46. Use independent contractors.
- 47. Commission your sales force.
- 48. Prune that mailing list even more.
- 49. Make credit comparisons.
- 50. Join an association.
Small companies often have margins so thin that if they are able to preserve every penny they will resemble tightrope artists. Balancing a small business budget is similar to walking a tightrope — making even a slight change affects its balance, and without adequate support, a sustained downturn can lead to catastrophe. Here are some important money saving tips every business must take seriously;
1. Cut office expenses.
Since we’re concerned with considering the bigger picture once things are running smoothly, we tend not to fuss over the relatively minor things we could easily waste money on, such as office supplies, leases of unused assets, food waste, and the like. If you estimate that your annual expenses are $1 million and that your waste allowance is about 3% to 5% annually, you’ll save roughly 1% of the total amount, which will generate roughly $10,000 in surplus cash. You might overlook the simple things, such as various household items that you could utilize in different manners some day. Look at the many ways you can reuse or recycle these things to save real cash.
2. DIY Your Content Marketing
Stephanie Parks, founder of DermWarehouse, suggests that if you have more time and money, then consider spending it by using your own content. Look into published books in their industry by visiting library archives, interviewing scholars by phone or video at your own personal leisure and then simply getting them out to an audience. If you are not an author, consider curating a few of the articles in your industry and publishing them.
3. Review all expenses, even the little ones.
It’s widely known that, in tough economic times, it is wise to cut back on unnecessary expenses and focus on minimum results. Juan remembers that, in 2009, they had been short-changing salaries to stop unnecessary expenses from flowing out of the company. Making even minor reductions in ongoing expenditures can lead to large savings in the long term. Don’t skimp to save on things that are not providing a return on investment, cut away a good deal.
Most businesses in the US are not operating from their office space currently, but office expenses will likely maintain. Some businesses have typical monthly payments for items like office supplies, while others have fixed payments for utilities, Internet services, and other things that were no longer used. An insurance policy may be cancelled, and additional information and discounts may be available.
4. Find a cheaper way.
You can also find a less expensive way to supply the same employee perks, such as at Gignilliat, who eliminated the $900 water cooler yearly expense and replaced it with a pitcher of filtered water for around $30. From $900 to $30 is a significant cost savings, and you may handle that kind of savvy financially in multiple areas.
5. Buy in bulk.
Ignion’s company is cheaper on the products by cancelling purchases that come out of middle men or the ones that spend the money at random, along with offering inexpensive, high-priced items. Examine your overall expenses and evade any purchases with little relevance to the main objective. Check into bulk purchasing and spend much less on things.
6. Use open-source software.
Some of your prospects may want to consider buying product upgrades at some point while working with you, so you ought to save money now to build profit later during your professional relationship with each prospect. When you are creating or updating any product, you ought to explore open-source programs first, and they can save you time and prevent costly software purchases and upgrades. Boyd’s company made use of open-source software to possess an online platform, and you can find free open-source computer software suitable for everything from picture editing to invoicing to searching for hired staff.
7. Create partnerships for marketing.
Boyd advocates partnering with other businesses to economise and broaden your scope of promotional campaigns. Vargo, CEO of a luxury lingerie shop, concurs: “We have dispensed with print and radio ads and focused on relationships with neighbouring businesses, for example, wedding gown shops, post mastectomy companies, photographers, hospitals and doctors. These parties have helped us greatly.”
8. Get sponsors for events.
Events can draw in large crowds, drawing in new and returning customers alike, and many business owners use regular events, such as trade fairs and seminars, in order to maintain their business’s customer base. Haynes recommends selecting sponsors who will cover the costs of the event in exchange for advertising during the event. Being a mutually beneficial venture, this event’s organisation and the sponsor should be steered aside toward a common goal for the sake of their participation in or sponsorship of the event.
9. Pay yourself.
If you are running a small business, it can sometimes be tempting to put everything into the day-to-day operations of the company. After all, extra capital can often go a long way in helping your business grow. Alexander Lowry, a professor and member of the master of science in financial analysis program at Gordon College, said that small business owners shouldn’t underestimate their own role in the success of their company.
10. Invest in growth.
It’s crucial to set up a systematic timetable for spending your earnings and saving up for future growth opportunities. This can help your company reach new heights and prosper in a healthy financial direction under the leadership of Edgar Collado, chief financial officer of Tobias Financial Advisors.
An endeavour that wishes to grow, innovate, and sign up the best employees should regularly exhibit its desire to spend money on future growth. Customers will appreciate the added value offered by more powerful services. Your employees will respect your dedication to the company, which will prove to the company’s full benefit. And in the long run, your dedication to the success of your company will be much greater than if you had been spending all your money on personal matters.
11. Don’t be afraid of loans.
Loans can be frightening. They may cast a worrisome shadow on the risks you’ll have from failing to pay employees or suppliers. Failure to receive capital from loans makes it challenging to both provide your workers the technology and can make your suppliers reluctant to do business with you. Use loan proceeds to strengthen your bottom line so that you can make timely and adequate payments to workers, suppliers, and other vendors.
12. Keep good business credit.
As you grow your company, you may find it advantageous to invest in more commercial real estate, acquire more insurance policies and take out more loans to allocate these funds toward new endeavours. With inadequate credit, getting loans and empowering such company developments may be more difficult. To keep good credit, make all your loan payments immediately. To keep your business’s credit card balances to a minimum, see that you do not charge too much interest. Likewise, avoid any loan from a creditor you will struggle to repay. Only seek funding from those who give advances that you can easily pay back.
13. Have a good billing strategy.
Each business owner has at least one tardy client who regularly neglects to pay its invoices on schedule. Managing small business finances also means managing your cash flow to ensure that your business stays in a healthy position on a daily basis. If you are having trouble with collecting from certain clients or clients, opting for newer billing methods may be an effective means to get things back on track.
14. Spread out tax payments.
If you’re having a challenge setting aside money for your quarterly estimated tax payment, make it a loan each month rather than a quarter, said Michele Etzel, owner of Bayside Accounting Services. That way, you will be able to handle the estimated payment as you would any other operating expense.
15. Set up good financial habits.
Even if it is nothing more than setting aside a set time for reviewing and updating your business’s financial information, establishing internal financial protocols can go a long way in safeguarding your company’s financial health. Of course, keeping track of your finances can decrease the likelihood of fraud or fraud.
Due to our small size, we may be lagging behind technologically or financially compared with other small businesses, but this should not be a deal breaker. It doesn’t matter whether a small company owner has the resources to do something when it comes to internal controls or not. The necessity of strong internal controls is especially significant if you have workers. Weak internal controls can lead to enterprise fraud or theft, and can potentially land you in legal difficulty if you or an employee are not following particular regulations.
16. Get sponsors for events.
Organisations that organise regular events count on them to draw in current consumers and attract new clients. Haynes suggests approaching sponsors to help pitch in with the cost of these events in exchange for some advertising will be present. For between the two parties, the mutual exchange of value can be expected when businesses are affiliated to each other, or the two are in related fields, such as publishing or information technology.
17. Amend recent tax filings.
The ability to review and assess prior two years of income taxes may be ignored as an underrated approach to creating additional financial savings for a business. This is permitted by the government, and can be assisted by a skilled and certified CPA who knows the tax code. I could have obtained up to $100,000 from the filing of amended tax returns. Typically, filing amended returns is extremely cost-effective, with returns sometimes providing up to six-figure returns.
18. Calculate ROI on your largest expenses.
Take a look at your top expenses, calculate a rough return on investment for each, and divide up “soft” or non-direct monetary gains. The bottom line should work with whatever the actual ROI is. The more you look at your finances, the more carefully and sensibly you will spend. Over time, anything that has a low return on investment becomes a good objective to eliminate or evaluate.
19. Supplement your main income stream.
A company can discover various means to create income throughout its core competencies. Search for additional ways for your business to have supplemental or passive streams of income to conserve additional cash.
20. Use Original Equipment Manufacturer’s Products
Shopping around for high-quality follow-on parts can conserve you as much as 90% over the amount you’d pay for the initial products. Vasconcelos did this to save roughly 90% in total production costs.
21. Cancel Recurring Services
Probably you’ve got subscriptions to book services that you’re using up. John Kinskey, entrepreneur and founder of AccessDirect, recommends reviewing your credit card statements once a month to negate those little onesy two service amounts that smoothly add to the total sum. Just a few taps and emails, you can save slightly less than 10% in your overall costs.
Evaluate the costs of renewals to gain insight into ROI. Consider whether subscriptions are intended to manage your business (marketing) or protect your organisation (insurance). This is a time for your budgeters to evaluate your recent strategy and your ideas for anticipating your business industry’s landscape in the upcoming 12 to 24 months, such as reducing spendon worker’s compensation insurance could yield quick money savings in the next several months.
22. Ask the people you know for help.
The kind of support you’re most likely to want from your contacts is referrals-the names of specific people who desperately need your services and products. Before you start asking, go ahead and ask your contacts for help! Your contacts can also give your names and numbers to prospects who would be glad to use your services. As your number of referrals increases, so does your potential for raising your capacity to generate business through referrals.
23. Make a special TV appearance.
Local cable TV stations will offer you reasonably priced advertising at the right price for hours around the clock. Though you may not be reaching prime time viewers, you’ll maintain a brand that’s surrounded by potential customers at the exact second.
24. Offer expert advice.
Teaching a class, speaking at a public meeting, or writing for a local paper not only establishes you as a thought leader, but also attracts attention from your community.
25. Take a look at accounts payable and accounts receivable.
One of the oldest cash-conservation a plan is to improve your accounts payables/accounts receivables cycle. This should extend payables and speed you up of invoicing , since it will go far in conserving cash. The exchange of goods and services, without cash, is the second concept involved. Your vendors are in a similar position and wouldn’t mind the ability to trade without cash.
26. Rethink your advertising strategy.
Instead of squandering thousands of dollars on traditional ad channels, adopt an unorthodox marketing strategy that involves social media, shareable blog posts, email marketing, and word-of-mouth. You’ll wind up saving money in a short run, but it can also generate a much-needed inflow of revenue well into the future. As opposed to traditional ads that peter out soon after their creation, live commercials will establish a firm foundation for your business.
27. Save at least 5% every month.
0.5 percent of all revenue should go into your business reserve, which can be used for savings. This will be a fantastic help when the time comes, since it will help slowly build a cushion. A good tip: Set up an automated system to make sure your savings are always 5 percent or more of all monthly revenue. You’ll get used to it and you’ll no longer think about whether or not you can afford to do this. It’s a conservative percentage most people can attain.
28. Automate Your Taxes
As a businessperson, your time is one the most important assets. Barbara Karpf, CEO of NYC-based firm DecoratorsBest, saved five hours each week. She is capable of recouping the lost time and money by maneuvering through her company’s taxes more efficiently thanks to new programs geared toward automating these tasks. Moving forward, the extra time she now invests in marketing and strategy planning will help her company continue growing.
29. Turn Off Your Computers
Leaving your laptop plugged in overnight can result in a substantial increase in energy costs, which especially if your computers have many sockets. Depending on your workplace’s capacity, this could be a money-saving opportunity for any business. Evan Harris, the founder and CEO of SD Equity Partners, encourages everybody in his company to disconnect their devices. “This may seem too simple, but few people follow through in reality. This small error could make a surprisingly large impact on your energy usage, and thus, on your utility bill.”
30. Get a suite deal.
Few people believe executives’ suites reach their range of functions as a home office. Some home based entrepreneurs use the services of a private executive suite to send and receive mail. A few execs also utilize executive suites to obtain voicemail redirected to their at-home business addresses.
30. Get a suite deal.
Few people believe executives’ suites reach their range of functions as a home office. Some home based entrepreneurs use the services of a private executive suite to send and receive mail. A few execs also utilise executive suites to obtain voicemail redirected to their at-home business addresses.
31. Use a project management tool.
Although the majority of project management tools charge a very small monthly fee, they ultimately pay for themselves, considering the increase in productivity they can bring in. A number of project management tools have free plans for small teams as well.
You shouldn’t be worried about your team members taking care of juggling everything on your plate as a result of the nature of your work. Program resource scheduling can make the process of overseeing your company’s tasks more efficient and productive.
Project management tools also maintain constant communication open between teams and monitor the costs of daily projects. Software like Asana, Trello, Basecamp, and Wrike can be useful while you’re searching for project management devices.
Your potential investors will eagerly ask you about the past use of your most recent investment funds, and you don’t want to give any overly painful explanations for how you used the money. By instilling elements of flexibility and efficiency within your business, you’ll be more capable of converting your new investment into earnings and raising a subsequent round of funding.
32. Reduce or eliminate office space.
Since the onset of the coronavirus pandemic, many businesses have found out that they can operate remotely. If your company permanently requires office space, you could consider saving yourself some money by using a reduced office space and allowing your staff to work from home on different schedules to allow them to share workspaces.
Does your company have procedures that allow your employees to work at their residence, but no physical attendance policies? Have you ever tried permitting your employees to work from home but were unable to do it for some reason? Perhaps you worried your potential to allow it would negatively affect productivity or communication.
However, thanks to technologies such as video conferencing, remote collaboration has become easier than ever. As far as productivity goes, there are project management tools that are significantly cheaper than having a physical office, including rent, technology, utilities, office supplies, and possibly even parking.
By shifting to an at-home workforce, you could even save on being out of work and improve employee retention. A study from 2016 found that remote employees take fewer sick days than those who conduct business at the office. A study by Airtasker, from 2019, revealed that remote workers are approximately 1.4 days more productive per month.
33. Eliminate or cut down on in-person meetings.
Some individuals enjoy meetings; they love sitting in them for hours on end. However, time is money, and countless meetings are evidence that time can also be awful time-savers for the average worker, who spends anywhere from an hour and nine minutes on each meeting.
Rather than holding formal meetings in person, utilize videoconference, email, instant message or telephone. The world of meetings can be divided into a few categories: No matter how casual a meeting is, it can be tricky to cancel.
A status meeting can be used to check the status of any project. Feedback meetings may serve as alternatives that offer feedback on the effectiveness of your project. You can use a project management software instead; this will ensure that you, as project manager, have constant access to information on your project at all times.
You must also make sure to meet people at less than 30 minutes. Start off each in-person conversation with an agenda no less than 24 hours beforehand, and be considerate of those who are invited. Unless you consider those who cannot participate to be nonessential, stay flexible on who to invite.
34. Outsource staff instead of hiring W-2 employees.
There are a lot of competent contractors in today’s economy who could handle your tasks on a contract basis, especially as an entrepreneur in the gig economy is growing three times as fast as traditional jobs. When you outsource, you won’t be required to provide employee benefits such as health insurance and paid time off.
Provided that outsourced employees agree to terms using the customary staff, it does not need to be provided to them a computer, telephone, or office space. As an industry norm, outsourced employees should want to independently use their own technology from their own office space. You’re also free to scale the amount of work you give an outsourced employee an appropriate amount to match the volume of your company’s sales.
35. Make technology work for you.
Aside from infusing technology into your HR plan, you can extend it to other parts of your business, not just to save on expenses, but to provide visibility and accountability and thus improve the quality of life for your employees, which could provide a significant boost to your ROI.
No matter the size of your workplace, technology offers numerous solutions to save your business money. Whether it’s billing, purchasing, or invoicing, automation creates cost-saving possibilities for the workplace. Neglecting to consider possible tech subsidies and spending too much money on technology can lead to your business losing money.
Such tech possesses high up-front costs, including costly certification and training, and isn’t guaranteed to pay genuine dividends, making it advisable to invest your treasure more effectively. These businesses certainly burn through available resources if they run into difficulties.
36. Streamline your HR functions.
One of the most beneficial advantages of establishing a business is how you’ll have control over the workforce, which goes a long way towards proving to prospective investors your seriousness about achieving your company’s goals.
Human resource departments, however, are among the biggest culprits of financial waste in businesses. Companies can lose money by incurring high costs on numerous aspects of human resources, including long and costly hiring procedures, high employee turnover, overlapping roles, and – perhaps the biggest headache for investors – litigation caused by poor employee relations.
By creating the function management of your HR department run more efficiently, you will present countless opportunities for long-term savings – not only in the HR department, but throughout all areas of your company.
One effective way to begin is by relying on technology to manage some of the labor-intensive tasks that need to get done. Establishing a company, one of the costliest parts of business running, is easier than ever. The recruitment of new employees can be done online, and as a result, time and other resources are used efficiently compared to using manual applications or interviewing candidates for the position.
Corporate machine-learning software can save you a great deal of money by ensuring that you have the knowledge and resources you need to hire and retain good employees.
37. Take advantage of tax deductions and exemptions.
There are several ways you can utilize your tax deductions and save a significant amount of money. Potential tax deductions include items such as vehicle expenses and employee benefits as well as overlooked items, such as interest on the loans you own, that the IRS has classified as ” helpful and appropriate.”
The additional savings that can be made won’t hurt your finances thanks to tax reforms over recent years. The law firm of Batson Nolan indicates that the $5.6 million tax incentives that began taking effect in 2018 could affect corporate and individual income taxes as well, which notably affect startups.
Besides the official website of the IRS, the Census Bureau offers valuable information on tax deductions and subsidies that may apply to your small business.
38. Don’t Pay Full Price.
No matter what type of business you’re in, you will never be in a position in which you need, and need only, to spend money for your company, goods ranging from office supplies to desktop equipment like computers, printers, coffee machines, or sofas. Browse classified and auction websites and you’ll often be able to find a truly unique deal.
There are lots of ways in which a company can be able to save money. Any surplus of used value-generating equipment is likely to qualify for a return on it. Such equipment might be new and old, obsolete or nonfunctional.
39. Smart Website Design
Establishing a website is an essential and effective marketing strategy for most small businesses, but not everyone is able to build a well-designed, mobile-friendly, and regularly updated website of which SEO optimization is key. Naturally, it can cost thousands of dollars to do so.
40. Use the Cloud
Rather than investing in costly computer hardware, look into cloud computing for your business. Choosing the right cloud service will allow you to easily scale up or down in response to demand and only pay for what you require.
Cloud computing makes it possible for your business to expand without your having to spend a great deal of money on costly technology updates. You don’t have to feel obligated to incorporate one high capacity server into your operation. Cloud computing also makes it much easier to bypass a single point of failure.
41. Embrace online tools
These days, most small businesses and organisations make use of some kind of software to assist them in their work. Many businesses now focus on software programs to help with all elements of their enterprises, allowing them to cut down on costs and tedium. As more companies enable their employees to work on projects using an online sharing environment, remote work environments have become a common focus among business owners.
Here are a few online tools available that can simplify your tasks and help you determine whether the cost of the service is worth any of the features it offers:
Trello is an ideal tool to manage a project team.
Canva is a useful application for creating stunning images and creative works for your marketing channels and sales collateral.
Zoom makes it easy for your team to connect to one another virtually, anytime and anywhere. Dropbox is a great way to share your files in a secure cloud-based platform.
42. Regularly Revisit Your Budget
As you set your budget, you should worm it around and be sure to make adjustments to it every day. While many companies organize annual meetings or various matters, the reality is that you have to be testing and tweaking your finances on an ongoing basis.
Staying on top of things prevents you from falling behind, and can also lead to a situation in which you must struggle and fight to find a way out. It’s a good idea to update your annual business plan once per year, but it’s crucial to look at your budget every month as well and compare estimated with actual expenses.
43. Buy Generic or Used Items
You don’t have to buy only brand-new or brand-name products for your office. There are times where it makes good stewardship to do so, but there’s also big savings on items like that when you turn your office into a hub for purchasing a generic or second-hand option.
Used products can often be bought for 50 to 75 percent less than new ones, even when they’re in pristine condition. Such products are not scrutinized by the people shopping for used goods; they can be worn and used as soon as they’re first bought. Aren’t you hoping to save some money by purchasing used merchandise?
44. Reduce Paper Consumption
Switching to paperless procedures may not possibly be sensible at this time, but you can still save money by reducing your reliance on paper.
The lower your paper use causes, the less paper purchases you will need to make, the less storage space you’ll require, and the more effective your particular operations will be. Get a head start by making some digital versions of paper processes and you’ll never want to go back.
45. Track Every Transaction
Manage all expenses and income to motivate yourself to reach your objectives and be sure to keep accurate records for tax time. Recording your expenditures and income serves two purposes: 1. It enables you to monitor your spending alongside income and 2. It keeps organised records for you and for the IRS.
The daily process of entering and collecting business transactions paves the way to professional management. With a carefully organized datastore, you can routinely track sales, cash flows, profits, and more, making sure that you are ready for tax season.
You can manage your company’s income and expenses with the assistance of computerised accounting software like QuickBooks, or you can do it manually with the help of spreadsheet programs like Excel.
46. Use independent contractors.
These taxes should never still be pursued by employers when compensating independent contractors. However, you should make sure that you are complying with the regulations outlined in the Internal Revenue Code, or you may find yourself accruing penalties.
47. Commission your sales force.
Overhead expenses, salaries, incentives, training costs, fringe benefits, and expenses for hiring your own sales rep all add up collectively, so consider contracting independent rep firms instead. Although the company-paid sales representative may be cheaper, this can also be an effective strategy.
48. Prune that mailing list even more.
The Direct Marketing Association offers this list of cost-saving measures. Eliminate nonresponders and marginal prospects; print “Address Correction Requested” on the face of your mail; investigate co-mingling your mail with other small mailers to take advantage of discounts generally available to large mailers; and stockpile mail to build up larger volumes.
49. Make credit comparisons.
Review your credit rating to find out which cards will allow you to minimize your outstanding balances at the end of each billing cycle. If you choose a card with a low-interest rate, you’ll pay less in interest over time. If you pay off the balance in full every month, it’s important to look for a card with a longer grace period so you don’t accrue extra fees.
Credit card companies grant reductions to annual charges and may waive the annual fee if you ask for it. To convince your credit card issuer to reduce your annual charge or waive the annual fee you’re charged, you may have to politely mention other company records with your interest rate, annual fee, and upfront charges.
50. Join an association.
Many business and trade associations have reasonable membership fees and periodically provide discounts for services ranging from expedited driving to broad area phone calls, drug prescriptions, sports wear, and golfing costs.