Five Money-Saving Tips for a Successful Small Business
Small business owners pour their heart and soul into making their endeavor a success, as well as a lot of time and money. For entrepreneurs to be successful, they need to be able to find a balance between investing in the business and saving.
Strategic spending is critical when building a business. Here are five money-saving tips for small business success.
Buy Refurbished Equipment
Unless you require highly specialized equipment for your business, there’s no need to purchase everything brand new. Purchasing refurbished or used equipment can save hundreds to thousands of dollars in business expenses, which can free up resources for other essential aspects of the business or reduce the amount of debt taken on to get started.
Look for refurbished copy machines and computers rather than buying the latest model. Be strategic when deciding which equipment pieces have to be brand new. If your printer-copier combo will only be used for the occasional copy and printing invoices, you won’t need all the bells and whistles. However, if you’re investing in a laptop that you’ll be using for hours on end each day, it makes sense to have something that can support your usage requirements for as long as possible.
Outsource to Other Small Businesses
A lot of small business owners make the mistake of thinking that they should handle everything themselves. With so many aspects of running a business on their plate, it can be hard to get the finer details completed. Tasks get put on the backburner or lose quality, due to a lack of time or expertise. Entrepreneurs spend hours building a website or figuring out an ineffective SEO strategy without considering the opportunity cost of handling these tasks themselves.
One of the best ways small businesses can grow while saving money is to outsource. Hire a virtual assistant who can manage your schedule and take on part of the workload. Work with a digital marketer who can create an SEO strategy for you to follow. Leave the website building to a local design student who needs some extra cash. Give yourself time to focus on the things that matter.
The days of the traditional 9-5 office setting is behind us. Remote work is becoming more prevalent, and small business owners are able to drastically cut overhead expenses by forgoing the traditional office setting for a mobile approach.
Rather than renting commercial space for your team, embrace telecommuting, renting a coworking space when you need something a little more structured. Set up a small work area at home and meet clients at local cafes or food courts. Allowing employees to telecommute is also an effective method of empowerment, giving them the freedom to travel and balance familial responsibilities while working.
Track Every Expense
Sometimes it’s the smallest expenses that cause the most damage over time. As a small business owner, sometimes the best way to save money is to first understand where it’s going. Tracking every expense provides more insight into potential problem areas and opportunities for savings.
For example, expense tracking might show that client meetings are adding up. Rather than booking big, in-person meetings with the team and offering lunch, changing up the time and cutting back on the refreshments or opting for a remote meeting could save a lot of money over time.
Use Open-Source and Cloud-Based Programs
Businesses no longer need a software package that costs thousands of dollars to operate. Instead, using open-source software like G Suite not only reduces the costs but creates a live, cloud-based environment that makes file sharing and updates easy and cost-effective. Rather than having expensive accounting software that needs an expert to operate it, use a program like Quickbooks or Freshbooks to keep things simple.
Small businesses owners need to be frugal to be successful while also investing back in the business. By following these simple steps, you can save money and create a sustainable source of income.