5 Ways Your Small Business Can Save Money

ways-that-small-businesses-can-save-money

As a small business, you know that pinching pennies is a necessity in order to stay afloat. Small businesses need to find creative ways to use their cash so that they can compete with other businesses. Check out the following five ways your small business can save money.


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1. Insurance

Shop around on insurance. Not all insurance policies are created the same, so what may work for a large corporation is not necessarily the right choice for your small business. This is why it’s very important that you look into small business insurance options for your company. These can provide you with the coverage you need, while being more cost-effective for your business as a whole.

Recommended reading: 4 Simple Ways to Save Money in Your Business

2. Software

There are certain programs and software that your small business will need. While some of these programs will be specific to your actual business, there are some that usually every small business will need, for example, accounting software that can help you better manage your money.

Depending on the type of software you buy or if you go for a cloud based accounting solution, you may be able to get away with using that instead of hiring a full-time accounts payable/accounts receivable employee.

Do your research on different software you can use in your business and see if they can help to streamline production or cut costs in any way.

Recommended reading: 5 Top Tips for Managing Your Business Finances Better

3. Virtual Space

One of the biggest costs that small businesses face is due to rent and utility payments. Decide if you actually need a brick and mortar establishment. If you don’t, then that’s a huge cost savings for your business. Instead, look into virtual workspaces that allow your employees to collaborate without having to be in the same room.

There are also many spaces now that rent office space on an hourly basis, so if you want to meet prospective clients you have a professional location to do so.

4. Outsourcing

Although you may dream of one day having a large full-time staff to accommodate your needs, it may not be a necessity now. Instead of hiring employees to handle all aspects of your company, you should consider outsourcing. You can outsource almost all of your business needs, including IT, HR, payroll, marketing, and more. Most of these companies will cost less than a full-time salary plus benefits for an in-person employee.

Do some research and see if you can find a company that offers the services you need. Then, compare their cost with what you would pay an employee and use that to determine if it’s a decent cost-saver for your business.

5. Look for free/cheap labour options

Another great way to save money as a small business is to be creative with your needs. One way to do this is to hire free or cheap help. For example, reach out to local high schools or colleges and use the expertise of their students. If you need graphic design help, hire a graphic design student as an intern or pay them to make your logo, website design, etc.

This will cost much less than having a full-time professional on staff, and you’ll still be able to enjoy quality work. You can do this for a variety of aspects of your business, so think of what your company needs, and then find a free/cheap way to get it.

Your business may be small, but it’s still great. In order to remain competitive in the marketplace, you need to keep funds readily available. Cutting costs is the best way to do this and help your company stay afloat. By using these tips, you can find creative ways to save money while still generating the best business you possibly can.

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Tuesday, 19 November 2019
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