There’s a lot of work that goes into running a small business. When budgets are tight, much of that work is finding ways to help cut costs. Lowering expenses without cutting corners means you sometimes need to get creative.
To help, here are easy ways to help cut your small business costs in different areas.
Overhead & Utilities
Where you work and how you work could make a difference to your bottom line.
1. Encourage telecommuting
With more employees working from home, many businesses may have a greater opportunity to save on their commercial leases. Allowing some staff to make a permanent switch to telecommuting could mean downsizing your office space and rent. You could also set up a hotdesking plan for employees working from home part-time or even rent space from a co-working site on an as-needed basis.
2. Power down at night
Keeping the lights on and equipment running when no one is working inflates your electricity bill. Encourage staff to always power down non-essential equipment and machinery before heading home each day. This includes individual computers and switching off the lights if you’re the last to leave the building.
3. Fix water leaks ASAP
Think of a leaky faucet as money going down the drain. A constant drip may not seem like a big problem, but one drip per second can waste more than 3,000 gallons per year—and have a sizable impact on your water bill! Fixing leaks around your workplace as soon as possible could help lower your bill. Start by checking faucets, toilets, dishwashers, and sprinklers.
Equipment & Services
Smart purchasing and taking advantage of low-cost marketing may help you save.
4. Buy used when you can
Refurbished or gently used office equipment may be a better deal than buying new. Many office suppliers offer refurbed copiers and printers but may also sell used kitchen appliances for break and lunchrooms. You may also consider buying used vehicles for business use.
5. Look for discounts
Vendors sometimes offer discounts for paying invoices early. It doesn’t hurt to ask for a small percentage off (typically less than 10%), if you have the cashflow to pay upfront. Your vendors may be willing to negotiate, as it eliminates the risk of the invoice going unpaid.
6. Buy in bulk
When it makes sense to do so, buy supplies in bulk for greater savings. This can be applied to many areas of your business, including office stationery and kitchen supplies. However, you may also be able to negotiate better rates on business flights and hotel rooms when multiple employees are traveling together.
7. Leverage social media
When you’re starting a small business, you may not have a lot of money available for advertising. Social media could help grow your business in the meantime. Creating social media accounts is free and can help build brand awareness. Paid ads on these platforms is often a cost-effective way to reach customers and experiment with different messaging.
8. Ask for online reviews
Word of mouth is an underrated way of getting new business. Reviewing sites have moved this marketing tool online, letting customers share their experiences with a wider audience. Ask loyal customers to leave reviews for your business on Google and other review sites to help get the ball rolling!
Business Insurance
Comparing policies and bundling coverage might be a better deal for business insurance.
9. Shop around
Comparing business insurance policies helps you find the best premiums. Insurers often have different “appetites” for risk and may each charge a different price for similar policies. Getting multiple quotes for the same type of business insurance allows you to compare each offering and find the right policy—at the right price—for your small business.
10. Bundle your coverage
Many insurance companies offer business insurance packages, combining certain types of coverages into a single convenient policy. A Business Owner’s Policy (BOP) is a combination of policies, combining covers such as general liability insurance and business personal property coverage, to help protect small businesses from costly interruptions to service. BOPs are sometimes more affordable than seeking individual policies for each type of business insurance.
11. Compare again at renewal time
It may not pay to have a “set it and forget it” attitude when it comes to business insurance. Renewal time is a good opportunity to review your coverage to make sure it still fits your needs. If you decide to switch insurers, there may be new customer discounts and other money saving offers available to you.
Savings to be found
Every business is different, so there may be some areas discussed above where savings are not possible. However, it’s likely there are parts of your budget that can be trimmed. Looking for savings wherever possible could help you maximize profits and stay in the black.
Could you be saving on business insurance? Compare policies with BizInsure to find out.
