There’s not an entrepreneur out there who wouldn’t like to increase their profits, and reducing costs is one way to do it. But how do you go about saving money without hacking away at your operations like a madman?
We’ve got eight small ways to save money in your business that can make a big difference.
1. Get Organised
The first step to saving money is knowing where your money is going. Track your expenses for a month and categorise them. This will give you a good idea of where you’re spending the most and where you can cut back.
2. Collaborate with Other Small Businesses
Being a good neighbour pays off.
Teaming up with other businesses to create joint ventures can help you both save money. You can share resources, knowledge, and costs to reduce your overall expenditure.
For example, you could team up to offer a joint promotion. Let’s say you’re a florist and your neighbour is a baker. You could promote a special ‘bouquet and cake’ deal for Mother’s Day.
3. Review Your Suppliers
Suppliers are always looking for ways to increase their margins. So, it’s important to review your supplier contracts regularly to make sure you’re not being overcharged.
You can also save money by consolidating your suppliers. If you use multiple suppliers for the same product, see if you can get a discount by ordering from one supplier.
4. Constantly Talk About Your Business
If you don’t already, it’s important to tell people about your business constantly. Why? Because the more people that know about your business, the more likely they are to use your services or buy your products.
We’re not saying don’t market your business in other ways. What we mean is that you don’t have to spend a fortune on advertising. By getting the word out there both in-person and online, you’ll be surprised at how quickly your customer base can grow without you spending a fortune.
5. Be Mobile
Since the pandemic, people are increasingly interested in mobile services. During lockdowns, we all got very used to everything being delivered to us, and now we want the same for services too, from car repairs to computer support.
If you can offer a mobile service, you can save on expensive premises and overheads. Obviously, this isn’t possible for all businesses but if you are able to go mobile, it can really boost your sales while cutting your costs.
6. Contractors, Not Employees
In these uncertain times, many businesses are choosing to use contractors instead of employees. This can save you a lot of money in the long run as you don’t have to pay for employee benefits, holiday pay, or sick pay.
This is also a more flexible arrangement which, again, can be beneficial in these times of change.
7. Offer an Apprenticeship
Offering an Apprenticeship is a great way to get free or very cheap labour. And, if you find a good candidate, they could end up being a valuable member of your team.
Just make sure that you offer a structured programme with clear goals and objectives. This will help to ensure that your apprentice is actually learning and not just making the tea. It should be a win-win situation for both parties.
8. Know Your Deductions
When it comes to taxes, there are a lot of deductions that small businesses can take advantage of. From office expenses to travel costs, if you know what you can claim, you can save a lot of money come tax time.
Of course, sometimes things get more complex and it can be hard to understand whether an expense is tax deductible or not. In these cases, it’s always best to speak to an accountant who can advise you on the best course of action.
Small businesses are always looking for ways to save money and these eight tips provide a variety of solutions that can be implemented easily and without too much effort.
From reviewing your supplier contracts to teaming up with other businesses, there are plenty of cost-saving measures that small business owners can take advantage of. And, in uncertain times like these, every little bit helps.