As a small business
owner, you'll only be too aware that running a business is expensive. This
includes day-to-day costs, the odd unexpected cost that crops up; it all mounts
up. And that's before you look at the costs involved when trying to grow your
business.
Business owners
sometimes go out of their comfort zone and spend more than they can afford.
These things can greatly affect the business, which can lead to bankruptcy if
not eliminated on time. You would be surprised how even the smallest changes
can actually reduce the business costs and improve the profitability at the
same time.
With this note, one
way to decrease costs is by looking at your day-to-day functions and asking if
you could make some small changes that would give you incremental savings. Here
are some money-saving tips that every small business owner should know:
Environmental
Savings
Becoming more
environment-friendly doesn't necessarily mean you have to make drastic changes.
Even small adjustments that you implement on your business can create a
significant contribution to saving the environment, as help you save some money
for your business at the same time.
- Shut down your computer and other equipment when you leave. It could cost you around $71 per year if you leave your computer on for a day - even leaving the computer monitor on idle can also add up to your yearly expenses. You can decrease your business costs if you implement a "complete shut down" rule at the end of your business office hours. You can also introduce a "Switch Off" campaign at work, with posters or stickers placed in key areas, such as the printer, photocopier, or even by the stock room light switch.
- Go Paperless. Even though the
cost of printing and mailing might seem insignificant, they still cost you
a lot of money. Going paperless is one of the options you may want to
consider in order to cut some business expenses. Instead of printing, you
can save some important paperwork on your computer and pay the bills
online. Not only you will eliminate some costs, you will also make your
office less cluttered.
Contract
Savings
Similar with our
personal lives, it is a smart way to shop around to get the best deal on
insurance and utilities for your business. Here are some things you can try:
- Make a note on your calendar to determine when existing contracts are due to end. Set a reminder at least a month before the said due date so that you'll have ample time to search the market.
- Make a note of how long your
notice period is (usually between 28 and 120 days). If you missed it, your
contract will automatically roll-over.
Office
Savings
- Evaluate your staffing costs. The first thing business owners should do is to identify your business costs and to eliminate some cost categories that may cause some negative effects. Identify what is a fixed cost and what is an optional cost. Your employees, for instance, are your fixed cost, so make sure that they actually contribute positively to your business. If you want to reduce the employment costs, it's considered better to offer three-quarter-time job that includes benefits instead of a full-time job.
- Cut travel expenses. Small businesses don't really need to allocate to much budget on travel. But if your business is a big one, then make sure you plan every trip you make wisely. There are times when people get carried away and spend more than they allowed to do. Even if you plan to outsource some services, make sure you stay local in order to cut some expenses.
- Reduce the number of phone
calls. Most business owners use the phone for advertising purpose. If you
want to actually advertise your business and attract new clients, it's recommended
to spend more on mailing services instead of doing it over the phone. It
is a must to cut the number of phone calls, or to hire a person that will
manage the incoming calls instead of you.
It won't hurt practicing some of these money-saving tips and see how your business will benefit from it in the long run. After all, every penny counts.
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