Running a small business requires some serious frugality when it comes to expenses. Especially if your business is relatively new, you want to make sure you are getting the most for your money while still being able to put some aside for savings. This can often be difficult when we get into old spending routines, where we are comfortable with what we’re spending, even if we know we can cut back. By being critical of the expenses we make, we can save much more money. Here are several tips for you to use when trying to cut back on expenses for your business.
Photo by Tony Crider via Flickr
1. Time is Money
One of the most commonly overlooked losses of money is wasted time. For businesses with hourly-paid employees, if they have already completed their work for the day, they could spend multiple hours doing nothing on your clock. Laying off employees to cut back on costs is rarely a good idea for a small business, but letting employees go home early when there is nothing to do is a surefire way to save — as long as this is a clearly defined policy mutually agreed upon at the time of hiring and in compliance with local labor law.
2. Advertise with New Media
In today’s technologically dependent society, using social media is an integral part of running a business. Through social media sites like Facebook and Twitter, as well as a promotional blog, you can promote your business for no cost at all or for very little. Social media also provides the added benefit of creating personal connections with current and prospective customers by creating dialogue and collaboration with them.
3. Vending Machines
Believe it or not, working with a vending machines business can increase the cash flow at your store. If you have several employees or a decent amount of customer foot traffic at your business, adding snack and beverage vending machines will add some cash to your bottom line. It does carry some costs for delivery, installation, and maintenance. However, despite those costs, the cash flow will substantially outweigh them if placed strategically.
Some may not realize how much this country love small business owners. There are so many possibilities for discounted goods for business owners, yet so many get passed up every day. And it’s as simple as asking for the discount.
While purchasing small items here and there is less likely to give you a discount, a lot of places offer discounts for larger purchases, like printers and other office supplies. By taking the initiative to just ask if there is a small business discount, you could end up just paying wholesale instead of the retail price.
5. Hire Interns
Interns are a great asset to any company looking to grow. Because most internships are unpaid, this is a great way for businesses to save money while still getting their work done. Many colleges and universities offer internship programs for students to become familiar with their desired line of work before actually jumping into the work force. Rather than money, students get paid in experience which will set them up for success in the future.
6. Keep Your Utilities In Check
Lastly, checking all the lights and the thermostat when you close up for the day will also cut back on extraneous costs. Utilities are a major part of running a business, so minimizing those costs by relying on natural light during the day and minimizing the use of air conditioning will surely reduce the amount you spend each month.
There are a variety of opportunities that exist for business owners to save money. All it takes is some time and a critical eye before you realize that you’re saving money, and increasingly becoming successful by doing so.
Andy is a 30-something New Yorker who turned his financial life around. He took charge of his finances, got out of debt, and is now working his way toward financial success. He is the owner and publisher of WorkSaveLive.com.