How To Reduce Costs As A New Small Business Owner

As a small business owner, you’re always looking for ways to reduce costs. By doing so, you’re able to keep more money in the business. But as you know, reducing costs is easier said than done. On the plus side, the more creative you get the more you will realize that you can trim costs here and there. 

While there is no right or wrong way to reduce costs as a small business owner, some options are better than others. If you need a push in the right direction, here are five things that you can do today to consistently cut company costs. 

5 Ways To Save Money As A Small Business Owner

1. Hire Contractors, Not Employees 

It is no surprise to most business owners that it is more affordable to hire contractors than employees. This is due to the fact that your overhead costs are much lower. For example, you don’t have to pay for office space or office supplies. 

While it is not always possible to hire a contractor instead of an employee, you should at least keep it in mind. It could be the one step that you take that really reduces your costs. 

2. Stop Using So Much Paper 

This sounds like an easy one for a lean startup or SME, but it’s absolutely true. Think about all the paper you use throughout your workday. This includes everything from printing out documents to writing checks to sketching when you’re bored. 

Stop using so much paper by considering the digital alternatives that are available to you. 

Here is a simple tip on reducing paper usage. Start to track your paper use over the course of a month or two. At that point, make note as to where you can make progress. You may be surprised to learn that your employees are more than willing to take steps in reducing paper use. Sometimes, all you have to do is educate and ask. 

3. Buy Secondhand Items 

Some things you need to buy new, but that doesn’t hold true across the board. There are times when it makes sense to buy second hand items, such as when you’re in the market for office furniture. 

Why not get a discount on desk chairs or decorations if you can? Why purchase new items when a gently used pre-owned item is just as good. 

You won’t but everything secondhand, but you should consider buying some stuff in that manner. It is one of the easiest ways to get what you want at a price you’re willing to pay. 

4. Search For Free Software Alternatives 

Do you spend hundreds or even thousands of dollars every year on software applications? Are you wondering why you continue to do so as you look at the results? 

It is easy to get excited about a new software product, but much  more difficult to implement it and make it work for you. On the plus side, this is generally an easy process. Find an alternative, test it out, and mark down the pros and cons. 

There are plenty of free alternatives out there to the free software suites that exist. Don't be afraid to move out of your comfort zone. 

5. Negotiate Your Rent 

No matter how much you’re paying for rent, there is always room to negotiate. There’s always something else you can say in an attempt to get a lower price. 

Negotiate your rent before you move into a building and during your relationship. It takes time and money to find a new tenant, so as long as you’re reasonable with your request everything should fall into place. 

There is a fine line between wanting to save money and taking action to do so. Be sure that you are confident that the decisions you’re making will work in the favor of your company over the long run. You will never look back and consider this a mistake. If you need to ask questions such as ”what's the difference between payday loan and installment loan” don’t hesitate to do so. You deserve answers for your future finances. 

Final Thoughts On Saving Money As A Business Owner

What do you think about these ways to reduce costs as a small business owner? Even if you only experiment with one of these, you’re likely to find that you can save a bit of money. At that point, you can take your savings and put it toward something more valuable. 

Do you have any other tips to add on small biz budgeting? What steps have you taken in the past to reduce costs within your small business? Share your company cost cutting creativity along with the link to this article to help other SMB owners!

3 Tips To Be A Successful Leader In Business

Every entrepreneur dreams of having a successful business. To be a successful entrepreneur there are many traits you need to have, such as confidence, business savvy, and most importantly leadership. Leadership is one of the defining traits of any successful business owner. 

Being a strong leader can help you build teams, attract top talent, and have a more productive and effective business. Becoming a successful leader in business is a must for any entrepreneur. 

Here are 3 tips to be a successful leader as an entrepreneur. 

1. Set Up A Routine 

Routines are often praised as the hallmark of productivity and are strictly followed by famous entrepreneurs. Along with claims of increased efficiency, productivity, and more time freedom, routines can also help you be a better leader. 

Effective routines are a great way to provide structure, and expectations and create easy workflows for your employees. Additionally, by implementing routines for your team, they will be easier to lead, as routines will lead to less supervision. 

There are many ways you can implement routines in your workplace, on either a personal, department or even daily level. You can create routines in your business to help have more productive meetings, easier workflows, and promote teamwork. These easy routines help set expectations and can be implemented in nearly any business. 

Routines To Set For Employees 

● Create Daily Routines For Roles: A great way to help lead your team is through clear expectations. Help your business set up daily tasks and expectations for any roles and responsibilities your company has. Make sure all tasks have a deadline and are completed on time. 

● Only Schedule Meetings During Set Times: Make it easier for your employees to be prepared for meetings, and have set meeting lengths, structure, and formats. This can help your employees have more productive meetings and be properly prepared. 

● Schedule Weekly Reporting For Your Business: Create a routine and expectations for daily and even weekly recaps and reports. This will help your team share daily performance and task progress and keep you and your team in the loop. 

Decisive daily routines offer many benefits to entrepreneurs as well as your business. Routines can help you be more focused and productive with your time, and also ensure that the most important tasks are completed. Lead your business by implementing some strategic routines into your daily life. 

Daily Routine Tips For Leaders 

● Affirmations / Positive Focus: Start each day on the right foot with a positive focus, or affirmation. Take time out of each day to build a positive mindset and be in a better mood! 

● Prepare The Day Before: Don’t let your day catch you off guard by preparing for your next day ahead. Review any notes, and refresh your memory on what needs to be accomplished tomorrow 

● Optimize Your Schedule: Use time blocking to ensure that you spend your time where it is needed most. Plan your day to complete small tasks in the least amount of time, and make sure to schedule your day for optimized productivity. 

● Connect and Follow Up With Your Team: Make sure to catch up and connect with your team. A well-connected team will be easier to motivate and lead if they are aligned with your goals and mission! 

Implementing routines into your business is a great way to not only keep your team on track but help you be a better leader in your business. 

2. Motivate Your Team 

One of the most effective ways to be a better leader is through motivating. As a leader, it is your goal to ensure your team aligns and connects with the vision and mission of your business. You can easily motivate your team with a positive work environment and communication. 

While it may not be feasible to know everyone on a personal level, you should strive to have a great connection with your immediate team. Additionally, there are ways to cultivate a great work environment for your company that can motivate any employee. 

Tips To Motivate Your Team 

● Pay Your Team Well: Pay employees fair wages and offer incentives for jobs well done. Make sure your company offers competitive wages for task roles. Underpaid employees are extremely hard to motivate. 

● Communicate With Your Team Often: Many workers feel disconnected from their bosses and leaders. An easy way to motivate your employees is through constant communication. From clear expectations, exciting updates, and personal connections, talk with your team and stay in touch. 

● Create A Positive Work Environment: From positive focuses for meetings, positive feedback, or even small gestures to show your team you care about them. Create a workplace your team wants to be a part of and create a company culture. 

● Provide Opportunities and Development: Show your employees you care about them and offer development opportunities. Classes, seminars, book clubs, or even mentorship go a long way to motivate employees to perform better at their jobs and gain new skills. 

Motivating a team can seem like hard work. With members of a team having varying interests and goals, it can be hard to identify the best motivators for your team. Thankfully you can help motivate your team by creating a positive workplace environment, strong personal connections, and growth opportunities. 

3. Avoid Burnout 

Burnout can be a team killer that business leaders don't always consider. Remote and in-office teams can suffer devastating consequences from burnout. If you want to be a successful leader you need to help your team avoid burnout at all costs. 

Burnout is a state of emotional, physical, and mental exhaustion caused by excessive and prolonged stress. It occurs when you feel overwhelmed, emotionally drained, and unable to meet constant demands. Burnout can leave your team unmotivated, and stall productivity. That is why it is essential you help your team avoid burnout. 

Ways To Help Your Team Avoid Burnout 

● Check-In Often: Constant communication (not micro-management) can help you identify when your team members are beginning to feel overwhelmed. You can then help your team by assisting with tasks, deadlines, or other important work. 

● Create Flexible Work Schedules: Remote work can help your team avoid burnout with flexible work options. It may be beneficial to offer hybrid and remote work opportunities for those employees that could benefit from this flexibility. 

● Ensure Work / Life Balance: One of the best ways to ensure your team avoids burnout is by maintaining a good work-life balance. Minimize meetings or work being done on weekends or outside of normal working hours. Encourage your team to pursue or share interests outside of work, and take vacations whenever possible. 

Build a positive company culture where the stress of work does not drain your team. By helping your team avoid burnout you can easily lead them to the finish line! 

Successful Leadership Summary 

Great leaders can guide any team to success. Whether your team is remote or in-person, leadership is an essential skill for any business owner. Use these leadership tips to help motivate your team. 

● Set Up A Routine: Lead your team and manage daily expectations with a routine and time frames to help boost productivity and accountability. 

● Motivate Your Team: Lead your business team by tapping their motivation. Pay well, constant communication and learning opportunities are all great ways to motivate your team. 

● Avoid Burnout: A burnt-out team is near impossible to lead. Use flexible work environments, and ensure ways to make sure to maintain a healthy work-life balance. 

Catherine Way is the Marketing Manager at Prime Plus Mortgages: Mortgage Note Investing a hard money lender and note provider for real estate investors.