Saving money in business can be done in numerous ways. Just about any business owner could look at their business and find ways to save when using the tips in this guide. You might think that you’re already saving as much as you possibly can, but don’t leave yet – take a quick look through the advice below and see if you can use any of the suggestions.
Don’t Hire – Outsource
Hiring comes with a whole host of responsibilities that you need to be aware of – one of them being that you have to pay your staff regardless of the money they earn for you each month. This is why it’s a good idea to look into outsourcing instead. If you’re unsure of whether you’ll need things doing consistently, outsourcing gives you fewer responsibilities while still getting the work done. If it turns out that you do need the work full time, you can then hire. Until then, outsource so you can be sure and save yourself any hassle.
Learn How To Negotiate With Vendors
Negotiating with vendors is key if you want to save money. You likely need to work with multiple vendors to run your business, so take advantage of this and practice your negotiating skills if you can. You also have the option of seeing if you can pool with other businesses to buy in bulk, which can further help you to save money.
Make sure you research vendors carefully too; the cheapest vendor isn’t always the best. You want a vendor that is going to give you top notch customer service on top of a great product. You can look at businesses like Construction Trailer Specialists, Inc. to give you an idea of what you should be looking for when working with vendors. In general, the better the relationship you have with a vendor, the more chance you have of negotiating a better deal with them. Focus on building strong relationships and you’ll be on your way to getting better deals.
Become A Greener Business
Becoming a greener business involves various techniques, but it’s a great way to go about saving money. You may also make more money, as people who are interested in working with green businesses might just come to you! So, how can you create a greener business? Start by cutting back on things like paper, and turn things off when you leave work for the night. Use recyclable packaging, and work with other green businesses to have an even bigger impact. There’s literally a long list of things you can do that will help you to become a greener business. Kinder to the environment and kinder on your bank balance!
Cut Back On Meetings
Meetings take up a lot of time and energy, so cut back on them where possible. Using collaboration software is much more effective, and it’s rare you actually need a meeting to talk about something important. In some cases a simple phone call or stopping by somebody’s desk can do it. Meetings simply aren’t productive, and this means they are costing you money.
Discourage Multi Tasking
Multi tasking in the workplace can trick you into thinking you’re getting more done, but you’re not. For example, checking your emails, updating social media, and working on a project will make you feel like you’re busy, but in reality, you’re getting less done than you would when focusing on one project at a time. Discourage multi tasking as much as possible, and discourage the use of things like social media and email during the day altogether. Have a set time for checking email, and then leave it alone for the rest of the day.
Shop Around For Your Business Utilities
In business you also need to pay the bills. Your utility bills can be a big drain on your finances if you don’t shop around for the best deals. Make sure you shop around for things like electricity so you can make savings – these will really add up over the course of a year.
Make The Most Of Telecommuting
Whether you can embrace telecommuting or not will depend on your type of business, as it isn’t possible for every single business type out there. However, where it is possible, it can be a huge money saver for your business. If you can keep things virtual as much as possible, you’ll be able to save money on overhead expenses and operating costs. Even if you can only find a way to convert at least some of your staff, it’ll make a huge difference.
Start Using Free Software
Using free software can be a game changer in business – it doesn’t all have to be paid to be effective. See what you can use that will help you to make things faster and cheaper. Even investing in some pieces of software could help you to save money in the long run, as you’re saving time and energy elsewhere.
Find Ways To Save On Your Marketing
Marketing is one of the most expensive things that a business will spend money on. Find ways to save on your marketing and you’ll have more money to your name. However, you should only save where you’re not going to hinder your efforts. Going to a cheaper marketing company may mean losing your results entirely. Word of mouth referrals are great forms of marketing, but you can’t buy them. You can create them by giving the best customer service experience that you can muster. You could take care of some of your own content marketing by creating awesome, shareable content, and then taking to social media to get your content out there.
Using social media regularly and taking control of other marketing aspects will help you to both make more money and save.
Find Ways To Get The Most From Your Employees
Make sure you look for ways to get the most from your employees. You can improve their productivity by giving them a great place to work, ensuring natural light and refreshments, and by being a great leader.
Improve Your Business Cash Flow
Improving cash flow within your business can reduce your need for loans and credit which come with interest, thus helping you to save money. Make sure you invoice promptly and send out reminders. Credit checking your customers can also help you to improve your cash flow and save money. If you work with a client with a bad credit score, you’d likely never get paid and end up losing out.
Hire A Professional Accountant
Hiring a professional accountant should be looked at as an investment, not an expense. They will look at your records and can help you to make better decisions, not to mention keep everything in order and ensure you avoid paying more tax than you need to.
Passive Energy Saving Measures
Earlier we talked about saving money on your energy, but there are also passive energy saving measures you can use. You can double pane your windows to keep the heat in, ensure tight seals, and use solar water heaters. Making energy efficient upgrades as your budget allows can save you thousands.
Turn Things Off After Hours
One seriously straightforward way to save money in business is to turn things off after hours. You can easily reduce your company’s electricity bill this way, and if you get the whole team on board, it’s very easy to do. Having personal computers left on overnight, or even over the weekend can suck energy out of your business like no tomorrow. Ensure everybody has turned theirs off before leaving work. If you own a restaurant or something similar then you’ll need to use your common sense; while you should turn off your ovens and similar appliances, you’ll need to keep your freezers running all the time. Looking for star rated energy appliances can further help you to save money.
Using Your Space Efficiently
As a business grows, it’s natural to dream of moving your business into an even larger space. However, you don’t have to do this if you’re smart; you simply have to make sure you’re using your space more efficiently. At the moment, many businesses tend to have 185 square feet of dedicated office space per worker. Many businesses even report their plans to shrink their footprints to less than 100 square feet of dedicated office space per worker by the end of this year. Things like mobile device usage, collaborative workstations, and multipurpose rooms (for example, conference rooms that can also be used as break rooms) are all great solutions for business owners who want to save money on the rent and make the most of their space.
If you take a close look at your business, you should find that these tips help you to save a fortune over the course of a year. Examine your business carefully and see what you find that can be improved upon. Do you have any tips to add to this guide? Leave your own thoughts and ideas below!