Young startups and small businesses are generally trying to save every penny they can and invest them into growth and development. Although companies can use various accounting software to keep track of income and expenses, an ideal profit margin can only be made when business is run efficiently.
Whether it’s cutting down on legal bills or finding inexpensive ways to draw in customers, there are numerous techniques small business owners can use to save money while staying focused on maintaining and improving the company. Let’s go over some of the most effective cost saving tips every small business should incorporate into their daily work routines.
Turn off nonessential power guzzlers
One the simplest, most effective and often overlooked ways for businesses to reduce their electricity bill is to power down all the appliances, lights and any working machinery at the end of the workday. It may take you and your workers some little getting used to, but it’s a rather useful habit to have. Personal computers are the biggest non-essential waste of electricity, so make sure every member of your team has powered down their machine before leaving work. Besides computers, you should power off any appliance that is not required for storage or security.
Consider using shared offices
Office space is rather expensive, both for leasing and purchasing. Most leasing options are tied to one or two-year contracts and require an upfront deposit. Instead of wasting resources on purchasing or leasing a new office, you should consider using shared office spaces. They can be rented on a daily, weekly or a monthly basis and most of them can be rented out only when you absolutely need them. The majority of shared office spaces offer meeting rooms, free internet and some even have in-house technical support. Not to mention that they are ideal places for networking, due to the sheer number of entrepreneurs using them on a daily level.
If you’re currently located in a larger office space and cannot really say goodbye to the furniture and equipment you’ve invested in a couple of years back, you can check out the storage solutions Sydney has available and keep your items there while you’re in a shared office space. Who knows, one day you might find it useful again when your company grows, becomes financially stable and relocates into a separate office building.
Spend less money on used equipment
You’d be surprised just how much money you can save by purchasing used furniture and equipment. The fact that it is used does not mean that equipment you’re purchasing has to be faulty or broken. Office changes and workforce restructuring is far more common than you think and every time it happens companies sell excessive items including office tech such as copiers and printers, storage and packaging equipment, etc.
Invest in digital advertising
Traditional marketing practices are really expensive. The average TV ad broadcasted to 1,000 viewers cost around $25 back in 2014, so you can imagine how much it would cost to run a TV ad these days. Radio ads might be less expensive, but they still require a significant budget. Not to mention billboards and other printed media.
Small businesses simply don’t have that kind of money to spend and the vast majority chooses digital and social media advertising instead. Couple that with the fact that you can target extremely specific audiences, measure the results and incorporate that data into your next marketing campaign, it becomes obvious that going digital is the only valid choice you have.
Cut down on travel expenses
Travel expenses are more than going to another state or country for a meeting with business partners and investors. This also includes the costs of employee transportation to and from work. Encourage your workers to try telecommuting to reduce transportation costs and place a firm limit on company-financed travels. If you absolutely have to go on a business trip, consider flying coach and avoid spending money on in-flight foods and drinks. Additionally, more and more companies are using telepresence to host virtual meetings not only to cut down on spending but also due to the sheer convenience offered by this kind of systems.
These are just some of the methods you can incorporate into your business in order to cut down the associated costs. This list is by no means comprehensive and most methods are company specific. What works well for one business does not necessarily meant it will work for all businesses. Take your time and consider what are your company’s biggest expenses and plan your savings accordingly.