As a small business owner you are often working with a tight budget, it only makes sense that you look for ways to cut overheads and increase profits. One of the most effective ways of doing this is by cutting down on expenses.
Here are five small ways you can shrink costs and save big:
1. Hire part-time staff:
If you require expert services such as a CFO or an accountant, some companies do offer those skills on a part-time basis. Another option for part-time help is interns. Call local universities or business schools and find out if there are students who would be interested in interning. Most students take on internships as part of their course requirements and will work for a small wage or a stipend to cover their transport costs.
2. Opt for rented equipment:
Instead of buying expensive office equipment like a printer or projector, some places rent out office equipment. Another option to avoid having to buy office equipment altogether is to make use of co-working spaces. Most spaces will have all the equipment you may need including meeting rooms, telephones and flat-screen TVs.
Tip: If your business does require a printer of its own, change the cartridges yourself instead of paying for labour.
3. Hustle on advertising:
Consider forming a marketing alliance with other businesses in your area and splitting advertising and promotional costs, for example sharing mailing lists.
Tip: Use all platforms to advertise your business, from social media to newsletters and even putting branded bumper stickers on your car.
4. Go digital/paperless where possible:
Research by Xerox shows that about 40% of office paper is discarded within 24 hours of printing. And it is not just paper, the cost of printing supplies, paper, labour and postage does add up. Using email and electronic file storage instead can save you a lot of money.
Tip: Instead of having products delivered through mail, pick them up from your supplier yourself.
- See also: 5 digital solutions for your small business
5. Lend your skills:
Bartering the skills you have in exchange for those that your business lacks can be a big help. This is especially useful for entrepreneurs bootstrapping their startups. For example, a media company can exchange editing and proofreading services with a company that specialises in bookkeeping or accounting.
