Every small business owner has to be extremely frugal when managing funds in order to help their business thrive. A whopping 79 percent of businesses fail due to starting out with too little money. This is why actively saving money must be a top priority as a small business owner.
While some of these ideas save more cash than others, it’s important to keep in mind that every little bit of money savings adds up. Maybe you pay for bookkeeping way too much instead of working with a cheap accountant that could do the same job? Take a look at these 5 innovative ways your small business can save cash starting today.
Consider Communal Advertising
Marketing your small business can be a major expense, and this expense can weigh you down. If your business has minimal exposure, marketing can cost your business thousands of dollars before you see some return on investment. This is why it’s good to get with other local businesses and try to advertise together. Consider sharing distribution channels, suppliers and mailing lists with other businesses that offer complementary products or services.
Avoid Renting Office Space Full-Time
Technology has transformed small businesses, offering new opportunities for owners and a more streamlined way to run businesses. Taking on a lease for office space can be very expensive and take away from your bottom line. Thanks to technology, you can run your business remotely from anywhere in the world if you have a smart phone or other device. Consider having an online business versus a brick and mortar store for as long as possible, just make sure you know how to stand out when selling online.
If you have the space in your home, you can convert it into your home office. When tax time comes, you can save precious dollars when you write off part of your space as a business expense.
If you’re already familiar with the best money making apps, there’s something else that is very simple that you can do to save your business money: barter. Nearly every small business is in a position just like you – they’re short on money. This is why you’re in the perfect position to barter for products and services. For example, a photographer and a boutique owner can engage with an amazon lifestyle photography session for headbands and other clothing and accessories. Think about who you can work with and reach out to gauge interest. While bartering may not always work, it’s always worth a try.
Hire Contractors and Freelancers
Hiring full time employees can really hurt the bank account today. While it’s ideal to build your team with loyal and motivated employees, you should also turn to independent contractors and freelancers to help you. They can provide high quality work and eliminate the hefty costs of onboarding and training a full-time employee. Freelancers and independent contractors are also experts in the field and will charge you only for the tasks you ask them to complete.
Offer to Speak at Events Within Your Industry
If you’re an expert in your field, then it’s a good idea to offer to impart your knowledge on others. Consider speaking at conferences or events within your industry and sharing what you know. This allows you to prove your credibility to others, offers you brand free exposure and gives you the chance to meet new people.
There are endless ideas you can utilize to try to save your small business money. While some will yield better results than others, most will save you at least a little bit of money. Try these strategies and watch your bottom line improve!