Whether you’re just starting a business or have been running yours for a while, I’m willing to bet lunch that you could use a few pointers about saving money. Who couldn’t, right? The more you save in your business, the more you can spend elsewhere to help your company grow, hire more employees or develop new products. Here are a few of my best tips for helping you save money in your small business.
1. See Where You’re Spending
Even if you had a handle on your expenses when you first started your company, it can be beneficial to take a look every few months, especially if you no longer are involved in the day-to-day finances. You might be surprised to see where you’re wasting money, such as on an organizational membership you never use, or even an elaborate phone system that your on-the-go-cell-phone-toting staff never touches.
If that’s the case, make a list of expenses you can do without. Some areas to consider cutting?
- That phone system; it’s out of date and even if you pay for your employees’ cell phone plans it might end up cheaper.
- An office; especially if you’re a solopreneur. Look into working from home or renting out flex space for the occasional need.
- On retainer lawyer; I’m not saying you don’t need a lawyer; that’s up to you. But many things you can use online services for at a fraction of the cost, like file a DBA.
2. Find Alternatives
If the idea of cutting out the daily office trip to Starbucks makes you feel ill, find effective compromises. In this example, investing in a quality espresso maker will save you money in the long run, and keep your coffee fanatics at bay. Or if cutting landline service scares you, look into Skype. Added bonus? You can make video calls to clients for free. Looking at cutting back on your staff? Hire freelancers or part timers.
3. Decide What Your Priorities Are
If you’re looking to cut costs, it’s probably for a reason. Maybe sales aren’t as great as they were last year. Or you are saving to move into a bigger office. Keeping this goal in mind can help you and your employees swallow the financial cuts that you have to face. You could probably live without that daily fancy coffee if it means you’ll finally have the office space you all need.
4. Assess Your Efforts
A few months after making the cuts, see if you miss what you cut out, as well as whether the cuts did indeed help you toward your goal. You can retweak your strategy at that point if necessary, or celebrate with a cup of barista-made coffee!
Looking for other ways to save money with your small business? CorpNet’s free tools, advice and guidance can help you choose a business structure, form an LLC, set up an S-Corporation or other corporate entity to protect your assets and attain the corporate tax benefits and financial advantages of doing business as a corporation.