Running a small business can be both exciting and challenging at the same time. All the hours you spend working on your small business and trying to grow day after day can take a lot of effort. And on top of that, starting up a business from the ground up can also mean having to spend a lot of money before you start to see a return on your investment.
And while the money you invest into your business now can repay massively in the future, you should definitely learn how small businesses can save money and try to cut your costs where possible. So, to help you cut on costs without hurting the potential of your small business, in this article, we’re going over 5 different ways your business can save money.
Read on to learn more.
1. Eliminate Paper
Going paperless is not only good for the environment but will actually save you a ton of money over time. Imagine all those invoices, receipts, documentation, reports, and data that you would have normally printed in paper done over the internet.
And while going entirely paperless might not seem like a big deal, you could easily be saving hundreds if not thousands of dollars in paper, ink, and printer maintenance if you go paperless. Not to mention that your business will be a lot more organized and documentation and files will be easier to find.
If you choose to ignore this piece of advice, know that over time, the paper you print out will start to pile up. This might eventually mean that you’ll need to rent out a bigger space as your existing property where you conduct business might be too small or crowded.
2. Choose the Right Credit Balance Transfer Service
Another seemingly minor cost that can add up over time is credit card balance transfers. When you open up a bank account for your business and start accepting card payments, you have to pay a fee for every transaction your customers make with your business.
And while these fees can push small business owners away from accepting card payments to avoid these fees, modern businesses will have a hard time transacting with every customer if they do not accept multiple payment methods – including card payments.
What if we told you it doesn’t need to be that way and that your small business can still accept card payments without having to foot the hefty transaction fees that have become a standard practice in modern-day commerce?
There are multiple ways you can lower transaction costs. Some of the most common ways include ensuring you’re PCI compliant, simply switching your provider or negotiating a better rate with your current provider.
Granted, these methods of lowering your transaction fees might not work every time, and that’s why your small business should start using tapeeno. With tapeeno, you won’t need a card reader machine. Instead, all you need is your smartphone.
Once your business is set up with tapeeno, all you have to do is input the price that your customer needs to pay on your mobile phone, and the customer just needs to tap their card. It’s that easy.
3. Don’t Buy All the Equipment Right Away
When creating a plan for opening your business and figuring out how to budget everything, there’s a high chance one of your biggest investments will be around the equipment you’ll use to run the business.
This includes company phones, computers, and a range of different accessories. In many cases, partnering with an IT support company can help you to effectively manage your systems and minimise the services that you need to invest in upfront for your small business. So, what we would recommend is that you only buy the essentials before starting out and then as you go, you can buy all the secondary equipment later when the need for them arises.
That way, you won’t spend any of your scarce capital on equipment you might not even use or need as much as you initially thought you might.
4. Look for Discounts
Following from the point above, you should always look for discounts. This is relevant when it comes to purchasing new equipment and tech for the business as well as software and digital tools you will need for your business to function.
In some cases, the discounts that are available to you as a company might not be publicly displayed, so make sure that you always ask. Sometimes, distributors and wholesalers will be more than happy to give clients a discount if they buy in bulk or subscribe to a loyalty scheme.
A simple and what might seem like an insignificant discount can end up saving you thousands, so always stay cautious.
5. Take Charge of Employee Spending
A lot of small businesses give their employees company credit cards to cover certain costs when on the job. This is a great plus for most employees as it can build trust between both parties while increasing their morale and performance.
However, it’s important that employees know the limits of their cards, as employee spending can end up costing the company a lot of money, and when starting out, this isn’t a good thing.
So, make sure to take the necessary steps to reign in employee spending and ensure that employees aren’t using the company card too much. When you do this, you will notice an immediate dip in the costs of running your company, which will give you much more disposable income, which you can thene budget accordingly or invest into the growth of the business.
Running a business is hard, especially when starting out. And for a lot of business owners, the initial costs of running a small business can be overwhelming. That’s why it’s best for small businesses to practice different measures that include cutting unnecessary spending where possible without affecting the growth potential of the business.
The tips we shared in this article are all great ways to reduce the spending of your small business. And while not all of them will be applicable for your small business – some might be – so it’s best to see which ones are relevant to you and your small business and adopt them accordingly.