6 Ways to Save Money in Your Small Business
When you’re running a small business, every dollar you spend matters. By saving money wherever possible, you’ll be more prepared for any surprise expenses or unexpected slumps in sales.
How can you save money?
1. Team up with other small businesses
Look for opportunities to partner with other small businesses in your area to split costs.
For example, consider hosting a sale with another business so you can split advertising costs.
2. Go paperless
Look for ways you can go paperless so that you’re saving money on paper and ink.
For example, instead of printing your employees’ paychecks, pay them using direct deposit. Then, consider sending your employees’ paystub online, so you don’t have to print them out.
If your business does not need a physical location, then save on overhead expenses by allowing your employees to telecommute.
According to a Stanford University study, allowing your team to work from home could decrease your employee turnover by almost 50%. So, by offering telecommuting, you’re not just saving money on rent and utilities, you could also be saving money by not having to hire as often.
4. Buy used equipment
You probably don’t need brand new equipment. Talk to other businesses in your area who are about to replace their equipment, then ask them if they’d be willing to sell their older equipment to you at a lower price. They’ll be happy because they’re getting some of their money back, and you’ll be happy because you’ll save money.
5. Hire contractors
If you need some extra help on a project, consider hiring a contractor instead of an employee. You’ll save money because you don’t have to pay payroll taxes, and you won’t have to find something for the employee to do after the project is finished.
Be careful, however, to make sure you’re not incorrectly calling someone a contractor. Mislabeling an employee can lead to steep fines and fees.
6. Shop around
Anytime you’re buying something new, shop around. Don’t just go with the first company you talk to because their price seems great. Talk to other companies to make sure you’re getting the best deal possible.
Looking for more ways to save money in your small business? Click here to learn 5 tips for staying frugal.