If you own a small business then you know it’s not cheap to operate, and sticking to your business budget is crucial. If you’re thinking about starting a small business, then a little research will reveal start-up costs, and maintaining your business to keep it running for the first critical five years may pose challenges. Thankfully, there are plenty of innovative ways to cut costs for small businesses. Here are a few ideas that will help lower your overhead and reduce expenses so you can run your small business within your budget.
Monitor Power Usage: No rule states you have to use your city’s electric company to power your small business. Research alternative electricity suppliers to see if they can offer a lower rate per kilowatt-hour. You can also look into eco-friendly power such as solar energy. This will allow you to generate your electricity without paying a monthly bill. If you’re concerned about the cost of installing solar panels, there are some government grants for which you may be eligible to reduce installation costs. At the very least, make sure all the power in the office is shut down at the end of the day. Unplug electronic devices (such as computers or copiers) at the end of work too because these devices tend to draw energy even when they are turned off. You may also consider using rechargeable batteries as this will reduce waste and save money on continuously buying batteries.
Reduce Printing Costs: Paper and printing expenses can take a huge toll on your business budget. Think about going paperless when appropriate. Save documents on your computer as PDF files rather than printing them on paper and storing them in file cabinets. When you do need to print, try to print double-sided when possible. Also, print in black and white rather than color because color ink tends to be more expensive to print. If your small business needs to print in bulk, think about using managed print services or MPS. These services assess your printing needs and manage your business’s document output which can reduce waste and lower printing expenses.
Go Remote: Due to the pandemic, more and more businesses are opting to conduct work remotely or even move their office into their homes. This is potentially a significant reduction in the cost of doing business and lowers overhead costs. When employees are working from home, this means reduced utilities or even eliminating the cost of renting a traditional office. Furthermore, having at-home employees means no longer having to buy supplies like coffee, food, and water cooler refills. Â
Utilize Discounts and Avoid Fees: Whenever possible, seek viable bargains and use coupons. Search the internet for discount codes before making a purchase. If you’re buying from a store, always ask if a discount is offered for small business owners. It doesn’t hurt to ask, and you never know when you might be able to knock a substantial percentage off of an item. Another way to save money is always paying bills on time to avoid costly late fees. And if you can, try to pay off your business credit cards in full every month to avoid interest fees. Also, you can find these discounts on sites like ShipTheDeal.com to save time and money.
Barter for Services: If you’re in a jam about a particular task, then consider bartering your offerings as payment in exchange for another professional’s service. For example, if you’re clueless about website design, but your business is in accounting, offer a local website designer your tax processing services in exchange for work done on your website. Bartering for services or products can be an effective way of saving money while networking with fellow small business owners.
Use Interns: a little-known trick that can save money is hiring interns for non-essential functions. You might wonder why someone would want to work for your small business for little or no pay. It’s because interns are typically fresh out of college and have very little experience. They seek internships with businesses in their field of study to gain exposure and experience. Hiring an intern can be a win-win proposition because you are providing them with the skills and knowledge they need to succeed while they are completing tasks that you simply don’t have time for. Interns are typically non-paid positions but you can opt to pay them a stipend. Either way, this can be a cost-cutting solution for your business.
Paying attention to where and how money is flowing out of your small business can mean big savings. Whether you are a small business veteran or just starting your business, these tips are certain to help you reduce waste and cut costs.
