When you’re running a small business, every dollar counts.
That’s why as we enter a new year, it’s good to think about methods of saving money for the year ahead. Costs can quickly spiral out of control without good financial planning, and we’re here to help you start the year off right.
Read on for 4 methods of saving money that work for small businesses.
1. Go and Stay Paperless
Paper and printing are not only expenses in themselves, but also require storage. It’s another business expense that will steadily rise over time.
Moving over to electronic invoicing, billing, receipts, records and document sharing services can help you to go paperless. This also makes use of technology you already have in place.
There was a time when the paperless office seemed like a dream. It’s now one of the top methods of saving money and will have you laughing all the way to the bank.
2. Track and Reduce Expenses
If you can’t track every cent that moves through your business, you can’t effectively reduce your expenses.
It’s a good exercise to ensure that all expenses are carefully tracked and then analyze the results. This will likely reveal areas where savings can be made.
Also, don’t assume your recurring costs are fixed. Are there cheaper business premises to move to? Can reductions be made on utilities? Can you go from a landline to VOIP telephone system?
These should all be explored as they may reduce expenses without cutting the quality of the services you offer.
3. Reduce Healthcare Costs
We know that small business owners pride themselves on providing healthcare for their valued employees. That being said, you don’t have to pay through the nose for it.
It’s a good idea to work with a health insurance agent to ensure that you’re getting the right cover for your workers, at the best price. Doing so will ensure a healthy, happy workforce and protect your bottom line.
4. Address Your Debts
When starting a business with little money, many owners turn to credit cards for quick and easy finance.
But what small businesses that make the most money do is use the most affordable forms of debt. That means targeting high-interest debt – especially credit cards.
If your small business has credit card debts, one of the best things you can do this year is to reduce or eliminate them. You’re potentially spending thousands of dollars a month on nothing.
Get some restructuring advice to move debts away from credit cards and into more affordable financing options.
The Bottom Line: Four Best Methods of Saving Money
It can be daunting to cut business expenses, but with good expense tracking, cost reduction, and debt management it may be easier than you think.
Following these methods of saving money will help your business to remain, streamlined, agile and able to remain solvent in the face of coming challenges.
Our team is here to help you by providing forms and templates to support your business so you don’t have to reinvent the wheel.