Small businesses can be fragile until they have their feet under them. Waiting until your business establishes enough of a client base to survive on its own might cost you more money than you intended. In this type of situation, looking for small ways, such as those listed below, can help you reduce costs without cutting to the bone.
Think About Space Needs
Your business will have fluctuating space needs based on its current size, and keeping a grasp on how much room you need is an important way to control your monthly lease costs. Ideally, you’ll first move into a building with a bit more room than your first operations require, which can allow you space for expansion. When your lease is up, however, be sure to re-evaluate the cost of the current lease and your company’s existing size.
Barter for What You Need
Cash is always nice, but you can find other ways to get necessary goods. Your business provides a product or service to the community, and you can leverage those offerings into getting what you need without spending much money.
For example, if your firm provides financial services, you can ask a web design firm to set you up with a website in exchange for money management hours. This exchange not only gets you a short-term benefit, but it also helps you network with the business community.
Study Communications Plans
Business owners sometimes find themselves burdened with legacy phone plans and other communications services that raise the monthly costs. Evaluating your outlay on your utilities is one way to cut expenses, and this evaluation may let you find new ways to make your business operate more efficiently. An affordable business phone plan from T-Mobile can help you keep your entire team in touch with each other 24/7, with multiple lines on one bill that can make sure everyone is on the same page. As a bonus, your employees will appreciate having business phones of their own like the LG V20 or the Samsung Galaxy S8 Plus.
Monitor Your Monthly Bills
Of course, communications technology is not the only monthly bill a business faces. You’ll also have to pay for electricity, gas, water, and other monthly expenses, such as transportation fees, based on your business model. By taking a close look at the bills, you can find some simple, common-sense ways to trim back on your expenses. For example, a programmable thermostat can let you set your heating and air conditioning system to temperatures that keep your building comfortable during the day while cutting back on power usage during off-hours.
Use Contractors Wisely
A business’s employee needs vary widely from project to project. Although some tasks require you to hire professionals with experience for your firm, you can carry out other tasks by bringing in contractors. The difference between contractors and employees is often the difference between short- and long-term expenses.
While a contractor can result in a large expense immediately, employees can cost more over time due to the expense of paying them and providing employee benefits every month. Figure out whether each project needs long-term professionals with experience or whether you can justify paying a freelance contractor.
Keep Advertising Costs Down
While advertising is an effective way to bring new business into your firm, too much investment in advertising could make your profit margins evaporate in a hurry. The key to saving money on advertising expenses is to identify what methods work best within your particular field.
If you operate a specialized B2B firm, placing advertisements in local newspapers and mass-mailing neighborhoods isn’t likely to be effective for your business needs. Today, the emphasis often turns to social media as an advertising medium. While you might be tempted to hire a consultant to handle your social media needs for you, you can save money by learning how to manage your social media accounts yourself.
If you keep a firm hand on your cash flow, your business can be more survivable than you might think. Plan your operations carefully so that you can control your business expenses.
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