As a busy mom, you might also be a budding entrepreneur responsible for employees. Economic issues and rising costs all around mean you might need to cut small business costs at your independent, online, or home-based company. Here are some tips to get you started.
Revise Employee Hours
This might be an unpopular choice. But it’s much better than the alternative. Cutting hours can instantly reduce your monthly outgoings. It’s a good idea to explain to your employees that it is temporary. Otherwise, there is a terrible alternative that nobody wants. Additionally, you can assess overtime payments and see where you are leaking money due to increased hours. You can check costs using this guide to calculating overtime payments for your staff. But in a nutshell, overtime is working over 40 hours in a 7-day period, and it could be costing you.
Consider Moving Office
When you rent an office space, you usually sign a long-term contract. But if you don’t want to rent office space for a long time, think about making other plans if you can. This way, you won’t be stuck with the rent you can’t pay when business is slow. And if you need to, you can move somewhere with more flexible payment terms or somewhere smaller, cheaper, or less expensive. Also, working in a place with other people is becoming more popular. This is kind of like a shared office space where you only pay for the services you use when you need it.
Stick to a Budget to Cut Small Business Costs
Recent polls show that about 45% of small businesses don’t make a budget for the coming year. But budgeting goes hand in hand with cutting costs for a business. This is because it’s almost difficult to make business decisions when you don’t know how much money you make and spend each month. So, a financial plan that you use every day can be a very effective way to cut costs for your business. Having an accountant do this for you is, of course, another cost. But you can review transactions with easy-to-use online tools like Quickbooks that also show tax.
Hire Staff on an Ad-Hoc Business
When trying to cut costs, hiring more people is the last thing you want to do. And there’s no reason to. Freelancers and part-time professionals have a lot of great skills that aren’t being used, and there are a lot of them. You can find experienced, hard-working, and educated workers in almost any field for a reasonable price, from people who make websites and do digital marketing to people who work in IT and security. A good place to begin is with a staffing agency. But you can also find talented and skilled workers on freelancing sites like Fiverr.
Switch Office Supply Vendors
If you aren’t careful, the cost of office supplies can go up more than it should. So, you need to keep track of the costs by taking stock. But you can save money on anything by shopping around and comparing prices. It might be a good idea to look beyond the traditional suppliers in your industry. You don’t have to use a service just because everyone else does. Major discount vendors like Amazon Business, Uline, and even Walmart are good places to find cheap office supplies. They can often beat the prices of traditional office supply stores, especially in bulk.
Explore Cost-Effective Marketing
Advertising is an important part of business in the modern world if you want to stay in business. And it comes in many different forms. Advertising doesn’t have to cost a fortune because of this. But you don’t want to get rid of paid advertising that is helping your business. But if you want to save money on business costs, you might want to look for cheaper alternatives. Building a list of your customer’s email addresses so you can reach more people with email marketing campaigns is a good example. And, of course, word of mouth is free on social media outlets.
Consider the Paperless Office
At times, the cost of paper, toner, and postage may not seem like much. But it can be a high cost for a small business. In addition to saving money, you can also help reduce carbon emissions and make the world more sustainable. Some common ideas for reducing paper are:
- Don’t use printers unless it’s necessary to do so, saving ink and paper usage.
- Promote the use of email for memos and boosting your sales as a small business.
- Create electronic versions of traditional paper documents and store them electronically.
- Switch to digital apps and software wherever possible to reduce reliance on paper.
- Implement the use of digital signature software to reduce paper contracts.
Going paperless is relatively simple. But it relies on the incremental removal and reduction of paper products. And it can take some time because of this as staff and customers get used to it. However, it can help reduce costs, but crucially, your office will become more eco-friendly.
Reduce Credit Card Usage
By putting business expenses on your business credit card, you may be able to cut down on your immediate business costs. But with interest rates and potential fees, this is not a good way to cut long-term costs for your business. Getting rid of your credit card balance is not a fast and easy way to cut costs for your business. But it’s a wise way to enhance the long-term financial health of your business. You should also look at the interest rates that your business bank charges you. There’s a good chance that another bank will give you a more preferable deal.
Use Alternative Software
No matter what kind of business you run, you will need certain software. And software is a huge help when it comes to automating tasks, cutting costs, and saving time. But you probably have a few programs that you hardly or never use. So, you can lower your business costs by only buying the software you really need. This is especially true if you have to pay for upgrades and subscriptions on a regular basis. Using alternative, open-source software instead of industry-standard apps is another good way to cut costs for your business and are often free.
Implement Energy Efficiency
As a citizen, you know that energy costs are going up. But the higher prices are also hurting businesses. And in some countries, there is no limit on how much energy costs for businesses. So, if you want to save money on your bills, it’s a good idea to use less energy. You can use less electricity by making a few small changes that don’t take much time. Switching to light bulbs that use less energy and last longer will cut down on how much you use. But turning off devices when it’s not in use will enable you to save a little more money on your monthly electricity bills.
Cut Small Business Costs with Another Payment Processor
If your business takes credit card payments, you need payment processors. And if your business only takes a few credit card payments each month. Obviously, make sure you have enough card terminals to run your business. But you might be squandering cash on a costly service agreement with multiple EPOS or card readers. You could also use a better value-for-money card machine from a company like SumUp instead of a traditional, more expensive one to take payments. They are just as professional and offer wireless connectivity.
Outsource Essential Expensive Services
As a small business, you may decide to outsource some tasks because it may be cheaper to do so than to keep employees on staff. Using IT staff from a managed IT service on an as-needed basis is a good example. This is because it might be too expensive for your business to hire an IT expert full-time. Some companies also find that outsourcing helps in other parts of the business. Most of the time, these are usually the human resources, accounting, and office cleaning departments. Over 90% of businesses hire someone else to do at least one job.
Consider Switching Business Bank Accounts
Bank rates and fees are a part of business and life. If the fees you pay to your bank are too high, it might be time to switch. There are a lot of banks that only work online and have low or zero fees. Small businesses can also choose to work with regional banks. Most of the time, the fees are lower than at national banks, and the service is more personal. Also, you can use the rewards you get from a local or community bank to save money on common business or office supplies. And if you have a good credit rating, you may be able to get a lower-rate loan.
Preferable to reducing the number of employees, you can cut small business costs instead. You can reduce work hours, try going paperless, and switch business accounts for better deals.