Independent writer, social media crazy, traveling enthusiast and the co-founder of DoQuickly.
Startups and small businesses, at times, struggle to strengthen their position.
You need money for your business to keep yielding more money.
It can get tricky, as well as stressful, at the best of times.
You have to optimize to achieve strategic goals without hurting the returns enjoyed by any employee or customer.
That’s where cost-cutting and money-saving come in. Also, it never hurts to have some cash reserve, in case you or the economy hits a bump.
So, I'm listing below five practical money-saving tips for small businesses and early-stage startups to bring instant results without affecting your day-to-day work, your employees, or your customers.
These cost-cutting small business strategies are capable of providing long-term benefits, too.
Without further delay, let’s dive in:
The thoughts of having a separate office can be fascinating, but the costs can be extremely high. Overhead expenses can pile up real soon, and you may not be using all the resources or space you’re paying for.
Instead of a dedicated office, set everything up in a corner of your home and gift your team the freedom to work from anywhere they want.
You can opt for a co-working space too, but don’t rent a lavish full-time office unless you’ve got a huge team. It is always better to assess your needs first to know whether you need an office or you should work form home.
Large businesses upgrade their equipment from time to time while many of those tools are in a working condition. And it gives you a money-saving opportunity for your small business.
Second-hand office furniture, used computers, and refurbished copiers might cost only half of their latest counterparts but are still as good as new.
Keep your eyes and ears open for auctions or classifieds in the local newspaper and grab the opportunity as it arrives.
Also, you can choose VoIP instead of a traditional landline phone to reduce costs.
As a small business owner, you need to be proactive to market yourself whenever you can. And coming together with other neighboring businesses will save you some bucks for sure.
Join hands with businesses that complement your services and split the costs incurred in marketing and promotion. Organize events, promote sales or find more targeted customers together. You can even barter services for mutual benefits. Not every deal will be successful, but you need to keep trying.
In a small business, you need to get things done with as few employees as possible. That also means wearing different hats when needed. Each player in the team needs to be multi-skilled. Still, your business might fall short of talent sometimes.
However, you don’t need to hire a full-timer unless the absence affects a core business function. Outsource tasks to another agency or hire a freelancer for one-off projects and non-core activities. You’ll thus be paying only for the work done and not any idle time.
Also, hiring freelancers and contract workers is cheaper than having full-time staff.
Making another addition in the team might seem counter-productive, especially when you’re trying to cut costs. But having an accountant is essential for the growth of your small business. Apart from creating financial reports and filing tax returns, an accountant helps you save money through his/her expertise in the field.
Providing business guidance, helping with the capital allotment and assisting you to optimize your business budget are some roles that accountants play. Therefore, make sure you have an accountant who is well-versed.
Working from home, using second-hand equipment, co-promoting your business and outsourcing one-off tasks to freelancers can help you build a substantial cash reserve. And having an accountant on board or on a monthly retainer will ensure optimum utilization of your money.
What other money-saving tips do you have for the businesses? Let’s discuss in the comments.