5 Simple Ways A Small Business Can Save Money

small businesses save money cut company costs budget expenses

According to the Small Business Association, small businesses represent 98% of all U.S. businesses, and almost half of the U.S. working class works for small businesses. Being a successful small business owner will depend on how you treat your customers, manage your resources, and provide the best quality services and products. 

If small business owners want to operate their business optimally, then they can use the following 5 tips to improve their business’ performance and efficiency. 

1. Use Energy Efficiently 

Many businesses waste energy every day and reducing your business’ environmental impact is not only better for the planet but also better for your wallet. Small businesses can invest in the following strategies to save the planet and reduce their costs: 

● Opt for LED lightbulbs, they may be more expensive initially but they outlast and use less electricity compared to incandescent or CFL lightbulbs 

● Practice paper-less strategies whenever possible by signing documents electronically, and sharing information online via cloud services and project management software 

● Choose solar energy by installing solar PV panels. State and Federal tax rebates could help you recover the costs and solar energy will reduce your utility costs. 

● Turn off servers and computers at the end of the day to save on wasted electricity. 

● Only purchase appliances with good energy ratings, the amount you save on utilities could offset the costs or even save money 

● Use motion sensors on lights wherever possible to keep lights off when rooms are not in use 

2. Share Resources With Other Businesses 

With the introduction of co-working spaces, more businesses are being housed under the same roof. Small businesses can save by sharing the following resources: 

● Office space and costs associated including heating, cooling, printing, and reception duties 

● Advertising and promotion costs can be split with neighboring businesses by doing collaborative promotions, sharing email lists, distributors, and suppliers of businesses that sell similar products or services 

3. Hire Contractors And Freelancers 

Everyone that works for your business doesn’t need to be an employee of your business. There are many freelancers and independent contractors available online that can help your business produce promotional content, market your business, run your social media, perform your clerical duties, write your blogs, and perform many other tasks. 

Hiring freelancers allows you to find the perfect person at the right price point for your business, decreases your business’s long-term financial commitments, and having remote workers will reduce the amount of space needed for the business to function. 

4. Always Shop Around 

Bartering, bargaining, and seeking multiple bids for services is a crucial step in saving your business money. Price comparison websites can help you analyze how much things cost from home, and contacting suppliers about their rates could help your business reap rewards, save on costs, and get the best deal out there. 

Even if you want to maintain loyalty to a particular brand, supplier, or service they may price match if a competitor offers a lower price. Refinancing bank loans for lower interest rates also add up over time and could lead to big savings. 

5. Buy In Bulk 

The more you are able to purchase, the more money you will save and that is why buying products, that your business uses frequently, in bulk could save you time and money. Bulk purchases can be shared between multiple businesses as well in shared office space to save everyone money. 

Cut Company Costs 

Running a small business is difficult these days with higher prices on everything. Keep these top tips in mind to help save your small business big money.

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