4 Money Saving Strategies For Your Small Business
The majority of businesses fail due to the lack of or misuse of capital. That said cash is most definitely king regardless the size of your operation.
Small business owners are at an even greater risk since they don’t have large supplies of cash to prop them up if things go south. While these odds aren’t the most encouraging there are still plenty of small businesses that are able to thrive.
If you’re a small business owner you need to do whatever it takes to save money. You need to rank your priorities and only spend money when it has a clear ROI for your business. You should try to weigh the value of each expense when considering them across your overall budget. In addition, here are four money saving strategies that you can use for your small business:
1. Outsource Workers and Hire Interns
The average cost to hire and train a new employee is about $4,000. That number is much higher than it costs for a small business but point is it can get very expensive. Try to hire remote workers or even interns to get certain jobs done.
Websites like Fiverr and Upwork make it super easy to hire consultants for small projects. For example, if you need a website built you can find super cheap solutions on these freelancing websites. You can charge per hour or using a fixed price giving you full control of your budget.
If you’re able to offer an awesome experience then you may even be able to recruit interns from a local University. For example, if you own a startup building some interesting technology you may be able to find some low-cost or even free labor from college students studying computer science.
2. Barter When Possible
If you’re like most small business owners you’re probably connected with plenty of others in your industry. If that’s the case you may want to consider bartering or exchanging services with other entrepreneurs in your area.
If you can offer valuable goods and or services in exchange for others you can get by for quite a while using this tactic. In addition your offering doesn’t even have to be specific to your business. Maybe you personally have valuable skills or know someone who could provide value.
3. Use Digital Solutions
The EPA estimates that businesses spend about $80 per employee on paper per year. If you’re constantly printing reports and using paper documents you’re simply wasting money.
From your invoicing to your contracts you should use digital solutions for each. There are plenty of online payments solutions like Flint that can seamlessly handle online invoicing and other accounting services. In addition, products like DocuSign allow you to sign and store digital contracts on their platform.
4. Reduce Your Energy Costs
The Small Business Administration estimates that reducing energy costs by just 10 percent can boost profits by as much as four percent. If possible you should look for offices or workspace with energy efficient appliances. For example fluorescent light bulbs and Energy Star appliances use significantly less energy than their competitors.
The more you can take into account and the more conscious you are about energy costs your monthly bill will decrease dramatically.
Small businesses need to constantly find ways to save a buck. If you’re a small business use one or all of the strategies listed above so you can stay afloat.