Every business owner will face a situation when they need to invest in a large purchase. Unfortunately, these purchases aren’t cheap.
Take equipment, for example. The average business owner can expect to spend between $10,000 and $125,000 on equipment!
How do you afford these expenses? You can always take out a loan or settle for another financing option.
But what if your business isn’t generating as much revenue as you want? It’s best that your business takes a good look at your spending and find ways to cut back.
If you want to know how to save money each month, here are ways your business can cut back on hefty expenses.
Here’s How to Save Money Each Month on the Highest Business Expenses
From your staff to your office, there are many actions you can take to save on these costs and to put more money in your pocket each month. Here are the best examples.
Affording Events and Conventions
Attending events and conventions is a great way to increase your brand awareness and gain new customers and sales. But lots of expenses go into conventions.
Take the video game industry, for example. Renting a booth varies between $250 and $41,000 per day.
You’ll also have to increase your budget to include furniture, gear, building the booth, hiring staff, and marketing materials. These costs don’t even include travel, accommodation, and hospitality.
Fortunately, the different types of expenses open up opportunities to save. If you can get the event to sponsor your brand, you can save on some of the upfront costs.
You can also find ways to save on travel and accommodation costs by using mileage points or settling for the less-than-luxurious flights and hotel rooms.
Try and save money a few months before the convention. Put off buying expensive equipment and other charges until after the event. Only attend one event a year to prevent going broke at the end of the year.
Saving on Advertising and Marketing
Advertising and marketing is another area where businesses spend a lot. The upfront costs may not be terrible. But any good marketing strategy requires consistency, so the costs can easily add up.
Fortunately, many advertising and marketing methods are cheap or even free. Start by cutting your digital marketing team and either handling your own marketing or outsourcing a cheap freelancer.
Use as many cheap methods as you can. For example, certain SEO and are easy enough for an amateur to handle. If you decide to invest in a paid strategy, such as PPC, manage your budget carefully.
This will ensure your monthly advertising costs don’t exceed beyond your control.
Learn to Negotiate
You can use this advice toward any business expenses. Negotiating with your vendors will help you save money and still get the products or services you need.
There’s no guarantee all vendors will comply but negotiating is a good way to see if a vendor is willing to work with you and your budget.
Which expenses are up for negotiation? Every vendor is different. You can start with the services you need daily, such as your office lease, your equipment, and your internet. From here, try and negotiate all products and services.
Outsource Instead of Hiring
Did you know your business can save thousands by outsourcing instead of hiring? Outsourcing ensures your work is done by professionals without the added cost of paying a salary, buying benefits, training materials, and insurance.
Only hire the staff you need in the office each day. Outsource other services, such as marketing and IT. In addition, you can hire a freelancer and pay them a set wage rather than a salary with benefits.
Save on Data
More companies are switching to affordable cloud-based services instead of buying their own servers. That’s because the cloud gives you the necessary data storage and protection you need without the high upfront and maintenance costs.
Server hardware costs about $400. This doesn’t include regular maintenance, repair, and updates. When you buy into the cloud, you usually purchase a set monthly cost that includes all of these features.
The cloud is also easy to use and is optimized for your whole staff.
Go Remote
Who needs an office these days? Just about all business operations are accessible via the web. This is why remote work is a growing trend.
Switching to a remote business cuts out monthly office rentals, utilities, internet, and other expenses.
You can also save money because you don’t need to commute to your office, saving gas money, parking, and other transportation expenses.
You’ll also boost retainment from employees and even your freelancers. 90% of remote workers plan on working remotely for the rest of their careers.
What if there’s no way you can switch to remote work? There are ways to still save on employee expenses while they’re working in-house, such as…
Cut Entertainment Expenses
We all like to have fun at the office. It helps relieve stress and connects us to our staff. But fun and games can easily add up.
Do you take your employees out to dinner frequently? Do you buy breakfast and lunch for the staff? Do you have entertaining features in your office, such as Netflix and video games? All of this can leave a dent in your pockets.
Instead, leave your entertainment expenses to a minimum. You can also make staff entertainment a group effort. For example, you can host a weekly potluck where each staff members brings in food.
Compare Products
There are ways to find a product that’s cheaper on another website or retailer.
But you won’t discover this benefit unless you do a little research. Before buying anything for your business, compare options to ensure you get the best deal on your supplies.
Enjoy Your Savings!
Now that you know how to save money each month, do you need more startup help? Visit our section to ensure your startup is successful and profitable!
