While there is no right or wrong way to reduce costs as a small business owner, some expense reduction 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!
