If you own a small business and are on a budget, you’re not alone. Running a company is no inexpensive task. That’s why it’s important to put saving money on the top of your priority list. Cutting costs in every way possible is essential to ensuring that you’re gaining profits.
The good news: saving may be easier than you think. There are tons of ways you can tighten your belt on the job. Try these penny-pinching tips:
Utilize the web - You already know to use social media tools like Facebook and Twitter, but also take a look at discussion groups and message boards, too. These groups are a convenient way to get your business’ name out there quickly and easily—all you have to do is sign your name with your web URL. And best of all, it’s free!
“I didn't start [participating in online discussion groups] to generate business, but as a way to find information for myself on various subjects,” said Shel Horowitz, owner of Accurate Writing & More, Northampton, MA, and author of several marketing books, includingGrassroots Marketing. “But it turned out to be the single best marketing tool I use. It costs only my time. [One] list alone has gotten me around 60 clients in the past five years.”
Form relationships with vendors - Being a loyal customer can take you far. When you frequently use a vendor, they’re more likely to let you in on certain deals as they occur or even offer you a reduced price on a regularly bought item.
“In order to approach this, make sure you have the same employee work with the vendor each time you contact them, always contact them in advance, and benefit them whenever you can by referring business to them,” advises Emily Swartz, marketing communications specialist at Broadview Networks. “Even if they don’t cut you deals, having a vendor that’s dependable and consistent is more money-saving than you might think.”
Go paperless - Chances are, the amount spent on paper, ink and postage can add up. If you get rid of it all, over time, you’ll see your savings grow steadily.
“Businesses should shift towards paperless payments for many reasons,” said Mitch Rose, vice president of BillTrust. “Businesses should not be reliant on the USPS for receiving payments. There is already too much going on with the USPS from rising rates, closing of postal locations, lost mail, delays due to disasters or vandalism, etc. Just as important, the cost to a business to apply a paper check payment is significant. They struggle with keying it in, getting the payment deposited in a timely manner and applying the payment to a specific invoice.”
Pay attention to how much you spend on the little things - There are certain small items that may be bought when you’re running a company that are easily overlooked — things like office supplies, cleaning tools, coffee, etc. And although small and not necessarily the most pricey, these items can add up without you ever really noticing. Spending a little extra time searching for good deals on these items can keep these costs from accumulating. Compare prices and also check for free shipping, which many companies offer on bulk items. You may also opt for cleaning the office yourself or save on package-related costs by delivering something to a close-by client. Also, get creative: buy recycled printer cartridges, buy used equipment on craigslist.com, etc.
Don’t overspend on taxes - Sometimes if businesses are new to a location, they’re subject to a higher tax rate. In order to avoid spending too much on taxes, take action.
"Go to city hall to determine what your neighbors are paying, and use this to negotiate a better rate," suggests Pete Collins of PricewaterhouseCoopers LLP in NYC. "Expanding businesses can often negotiate with community authorities, who want them to stay in town rather than move and take jobs elsewhere."
Go green - A double whammy: save money and help the planet. Things like recycling, for one, can help you scrimp and save at the office. "More and more businesses are recognizing the benefits of reducing their waste," said Carrie Hamblen, executive director of the Las Cruces Green Chamber of Commerce. "Not only can it save businesses money by reducing their overhead (but) recycling (is) good for business and benefits us all."
Other ways to “go green” include using reusable items like mugs instead of cups for coffee, buying products locally and investing in energy-saving utilities, such as lighting.