With the economic downturn of last year, many small businesses are looking at ways to reduce their overheads and expenditures. It’s estimated that almost 100,000 businesses closed in 2020 due to financial issues brought on by COVID-19.
So what can you do to ensure that you don’t also follow suit? In this article, we will give you 5 ways that will aid with cutting costs with a small business, save money and give you peace of mind. Read on to find out more.
1. Go Paperless
How to reduce costs of small businesses is think about and to cut down on extraneous ways of communicating. For example, why not go paperless? This will save you hundreds of dollars in the year in terms of printing and paper costs.
It’s also better for the environment, easier to store all your information and it saves all of the admin time trying to catalog all your data in one physical place.
2. Outsource Your Marketing
Hiring a full-time staff member can be costly, especially when factoring in healthcare and other benefits. When it comes to your marketing department, why not outsource a professional marketing director who can schedule posts, increase your engagement and generate sales?
Using a freelance marketing company means that you get all the perks of their experience, creativity, and ideas but without the high price tag that comes along with it. This also a great way of how to cut corners with small businesses. Then you can work out a marketing schedule that is unique and catered to your business and reap the benefits.
3. Work Remotely
So many small businesses are now realizing the benefits of home and remote working. Renting or buying a workplace for your employees can be one of the main overheads when it comes to running a small business. This is also factoring in the cost of heat, electric, and water bills.
Having your employees work remotely means that you will free up a lot of capital each month to put back into other aspects of your business. If you need to meet clients or your employees in person, you can rent office and meeting space for the day or even by the hour.
4. Buy Secondhand Equipment
Not every small business needs state-of-the-art equipment or furniture. This can be an unnecessary amount of money when you are trying to cut back. Shop around and have a look at secondhand shops or companies that are selling off their old equipment.
This is a great way to obtain some quality furnishing at a fraction of the cost!
5. Cut Back on Software
Take a look at your technology budget and software to see if you are actually using all the apps you have purchased. Some of these might have a monthly subscription fee that could be costing you hundreds of dollars each year.
If it’s not essential to your small business, get rid of it!
Having a Small Business, Save Money and More
We hope you have taken plenty of tips from this article on 5 ways to have a small business, save money and reduce your outgoings. Take a careful look at your monthly and yearly expenditures and decide what is essential and what isn’t necessary.
If you enjoyed this article, check out our other blog posts!