The phrase “It takes money to make money” is something everyone can link up to running a business. This means that you will have to spend money within the business to reap the rewards to make a profit.
However, as a business owner, cutting costs and finding other means to get your business to still generate your products and services without having high expenses is entirely doable.
For starters, you can save on business utilities by using online comparison websites to find the best deals available when finding a much cheaper supplier for your utility needs.
Clever Ways Business Owners Can Save Money
Here are some clever ways that you can use within your business to help shave off on the expense account.
These ways are cost-effective and can be easily implemented and adhered to if all employees are properly briefed on the reasons why.
- Go digital
Backing all important documents and information of your business to the cloud is a much cheaper way to handle the business admin instead of having to pay for storage for boxes of paperwork.
- Lease equipment
Instead of buying the equipment the business needs, you can save more by leasing them at a fixed-term rate for as long as needed.
These contracts often come with maintenance as well, saving you money to fix or service them out of the business account.
- Negotiate with suppliers
Asking for a discount on bulk buys or negotiating with your suppliers for a percentage off the fees can help save money but still get your business the necessary resources that it needs to work effectively.
You can also negotiate with your insurer about your money premiums or find a cheaper one that has a more affordable rate with the same benefits.
- Use cheaper methods of marketing.
Social media platforms are cheaper in terms of marketing, and you can reach a wider audience and potential clients when using different platforms as your marketing method.
- Outsourcing tasks
Some tasks within your business might not require a full-time employee. To cut costs but still get the work done, you can outsource by hiring freelancers to do the work when needed at a fraction of the costs you would need to spend to give a full-time employee.
- Remote workers
Having your staff work from home is another way to cut costs. This means getting smaller business premises which would be much cheaper than renting a huge office space.
You wouldn’t have to pay for extra allowances such as petrol or travel expenses.
- Using energy efficient practices within the business.
This means encouraging practices such as recycling water and turning off unnecessary lights can help save on the energy bill and cut costs on gas and water.
- Keep track of expenses.
Keeping track of all expenses highlights where the business spends too much money and can also come in handy during tax season when you need to get your money back.
Some expenses are tax-deductible, meaning you can get money back if you paid for them for the necessity of your business.
Ask all your employees to hand in their receipts so that you can ensure the tracking of expenses.
- Invest in upskilling employees.
Although, in the beginning, this could seem like an expense the business does not need, you can find ways to provide your employees with extra skill training that would benefit the business by having someone in-house that can work two different departments if needed.
- Set strict limits for employees with spending power.
Those employees who are responsible for reordering stock or resources/materials for manufacturing processes should be placed on a strict limit to not overspend business money or purchase bulk materials that might go to waste.
You can set an incentive for those employees who adhere to company policy as a reward for saving.
Finding unique ways to save within a business is not necessary if you have a financial plan in place.
Following your financial plan will help you watch your income and expenditure more closely and help you decide which expenses can be done without.
Choosing from the above list of clever ways to save money as a business owner can help you expand your business practices while saving at the same time. Be sure to use as many ways as you possibly can to increase sales and decrease expenses.