Ways to Save Money in Your Small Business

You have definitely spent a lot of your time, effort, and money establishing your business. And you are the one who mostly understands the operation of your business from its start-up until now.

You might be wondering why “business is to earn and invest but not to spend”? Yes, mainly, we establish our business to earn, but before anything else, we risk and invest in starting the business, from planning to location, equipment, people, and many other aspects of business operation. “Not to spend” is to avoid unnecessary expenses, and here are some ways to help you do that.

9 Ways to Save Money in Your Small Business

1. Don’t get too excited with marketing tools.

Marketing can really be a good investment that could boost your sales; unfortunately, utilize only the ample marketing materials that will satisfy your business. It’s true that marketing tools are important, but making money is more important. You can market your business by spreading the word to all of your entrepreneurial friends and starting your marketing alliance, making customers happy, and serving them well – focus and talk to them. Let them feel that they are important and your product can really be helpful to them. In addition, generate business from referrals – they can be from your family, friends, satisfied customers, etc., and many marketing strategies that are financial wise that could save you up to 50%.

2. Make use of internet tools wisely.

Online is a wide range of communities that could be an excellent tool for finding good customers. But why spend the extra money to establish your own website when you can have an online presence for free? We have several online social networks that will help you spread the word and could be sources of good customers – Facebook, Twitter, LinkedIn, Pinterest, and a lot more. Or start blogging your business with Google’s blogger.com, blog.com, WordPress, Tumblr, etc. Spread your business updates every day, every hour, and at any time you want without worries. You may start your blog and provide reviews about your products and services, success stories, current issues, upcoming products and services, and whatever issues regarding your business may interest your customers and attract more of them.

3. Location wise. 

You don’t need fancy space to run your business. The important thing is you have clean, organized, and sufficient space to run all the necessary stuff needed to operate your business well. Furthermore, make sure that your business is convenient and accessible, not just for your customers but for your own sake as well. Always remember that you are running your business to earn and save.

4. Utilize used materials and equipment.

Second-hand materials aren’t bad at all. You don’t always need to get brand-new materials. If it can be recycled or someone offers you such materials, why not as long as it’s useful and in good condition – computer equipment, copier, and office furniture? Auctions, thrift shops, and classified ads are good sources of used equipment. Office supplies such as bond papers, folders, envelopes, etc., can be recycled. In addition, instead of spending the extra money to buy forms at your local office supply store or spend time creating them yourself, you can find loads of free forms online that you can download, customize, and print. Our best friend, Google, is always there for you anyway.

5. Be secured, and get your insurance.

Insurance can be very helpful in times of uncontrollable catastrophes. Buy appropriate insurance while still early that protects your business and saves money in the long run. Visit the insurance company you’re most comfortable with and get details with their financial adviser for your better understanding of the service that could help you buy the insurance you needed.

6. Hire people wisely.

Rather than paying for employees who aren’t actually productive or paying all of their benefits, consider hiring temporary employees. Or to save you from paying your people the extra, commissioning your people, or even leasing an employee from a professional employer organization, which saves you substantial cash from employee benefits. Some business owners even make their children their workforce, so why not? It didn’t just save them from employee benefits but, more importantly, from taxes.

7. Negotiate properly. 

Everyone needs each other to be successful. You want a new client, and they want new clients as well. You must always ask for discounts for new businesses – bank fees, insurance rates, marketing tools, suppliers, etc. They will be willing to give you discounts when they see you as a good partner or client and will be a solid client in the future. Some may ask you for suggestions, referrals, and anything else that could help their business as well. It’s a matter of give-and-take business matters.

8. Keep an eye on financial temptation.

You might have cash on hand, and there are things that catch your attention because you think that you have cash and that later you’ll be earning. I tell you, avoid such things. If you see stuff that could help the business but could not actually generate income and will just fall into your expenditures, stop it! One more thing: don’t get carried away using credit cards. And if you happen to use them, use them wisely. In addition, if you’re near your suppliers, pick up your order yourself or perhaps have a friend or family member do it for you.

9. Partner with other entrepreneurs.

If you aren’t good at accounting, perhaps someone in your network has accounting skills. What if that person isn’t good with marketing and managing, or is there something else you can offer to trade services? Don’t stress yourself, and always ask for help. It’ll save you time, effort, and money following some business that you and your partner can share.