If you own a business, you know the incredible expense that comes with keeping it thriving. And, if you don’t own a business, you should know that starting one is costly, and maintaining one is even more so. Many people aren’t aware of this – some even think they’ll become millionaires overnight and they end up spending like kings before their venture has even taken off! The quicker you understand that there’s no easy way to success, nor is there a get rich quick scheme, the better!
Businesses need capital to get off the ground – which is used up fairly quickly; and again, many don’t know that most ventures lose money for the first 2-4 years. Only after five years, usually, do even good businesses start making profits. This means, that to stay afloat, businesses need to cut costs; especially during its infancy years. If costs are not managed it could mean failure, thus making it an incredibly important operation.
However, with so many prerequisites for success, it can be difficult to identify the areas of a business which could do with smaller budgets. Every operation seems so vitally important! So, where does one start? To answer your question we have come up with 10 ways to save your business money – a useful guide that will certainly make a positive difference to your business.
- Outsource work
Outsourcing work is an incredibly viable option for small businesses who want to cut costs. Paying an individual a salary is a lot more costly than seeking out a freelancer who could do the same job, but at a lower rate.
- Cut down on maintenance
Ask yourself if you really need a cleaning service twice a week – or even once a week. If everyone in the office makes an effort to maintain their surroundings; keeping their areas neat and tidy and washing up their used cutlery, you can go without a regular cleaning service.
- Hire interns
Interns are not usually worried about pay, but are rather concerned with gaining experience in their chosen fields. While going this route may be a little more time consuming due to training etc, it’s an affordable way of getting things done, and there are many great benefits to hiring interns, too.
- Buy bulk office supplies
Instead of buying office supplies in small quantities, consider buying in bulk. Buying in bulk is a lot more cost effective and it will save you time from rushing out to buy supplies every week due to running out of the small quantities.
- Save on utility bills
You can save on your utility bills by being more aware of your usage each month. Big businesses who have utility bills running into the millions each month can also save on these costs by looking into utility management solutions. There are a few great companies who can help businesses lower their utility bills; helping them to save hefty costs.
- Exchange services with other small businesses
Other small businesses are also looking for ways to save costs, so why not help each other out? If you can offer a service they’re looking for, in an exchange for their services, then both of you win. This is also a great way to network in the field, and may even help both of you to become noticed in the space – at no extra cost!
- Use less traditional marketing strategies
Traditional marketing strategies are always expensive. For example, if you want to advertise your company, consider using social media instead of traditional advertising techniques such as radio or TV ads. Social media is (arguably) more effective in this day and age!
- Analyse all expenses regularly
You need to be aware of what you are spending money on – even if you are only spending small amounts on insignificant things. Costs start adding up! So, even if there is a subscription you’ve signed up for and are not using, cancel it – whether or not it’s inexpensive.
- Rent inexpensive office space
You don’t need the most trendy office in the best part of the city. A small, workable office is good enough. Look for office space that ticks all the necessary boxes and is affordable. There are great options out there, you just need to shop around and negotiate well.
- Consider allowing employees to work from home
Some roles can be fulfilled from home, and it’s cheaper if you allow such employees to work remotely for a few days of the week. Think of the amount of coffee you’ll be saving! But on more serious terms, it will save you money in the long run.