As a business owner, you need to keep your eye on those little expenses that add up and eat away at your bottom line every month. Luckily, there’s no shortage of creative methods you can use. Here are four ways to use to save money in your business:
- Work smart
If you run a startup in 2020, then you should seriously consider serviced office solutions. The benefits are numerous not least of which is having access to a complete office setup for a fraction of the cost.
That’s because the cost of furniture, equipment, electronics, utilities, stationery -and even administrative services- is split between various enterprises.
Another way to work smart in the 21st century is to hold fewer meetings. A report by the Harvard Business Review shows that meetings can have a detrimental effect on a company’s productivity and finances.
They can also disrupt individual and collaborative work time, especially if they’re not properly planned. One way to hold effective meetings is to reduce the number of required attendees and get the main decision-makers involved to move things along quickly.
- Get rid of unnecessary subscriptions
Over time, businesses tend to accumulate subscriptions to different services, whether it’s project management, data tracking or accounting software.
But, do you really need that teleconferencing software you signed up for a few years ago? Or maybe you’re paying dues for a networking club that you don’t even go to anymore. The reality is that you could be spending thousands of dollars every year on subscriptions that you don’t use.
Start by checking your monthly bank statement to get a bird’s eye view of all your expenses. Then, make a list of all the subscriptions that are no longer in use so you can remove or unsubscribe from them.
- Invest in the right tools
We all know that if you buy cheap you buy twice, and this principle applies to the tools that you use in your business. Instead of using a bunch of cobbled-together solutions, rather pay more for a single tool that actually saves you time and money.
Automated tools, for example, could save you from hiring extra staff by taking care of important tasks while you sleep. Instead of using expensive marketing channels like newspaper and TV ads, opt for digital marketing tools like social media and Search Engine Optimization instead.
Unless you’re running an aggressive online marketing campaign, six hours a week is all it takes to maintain and grow your online presence through two or more social media accounts, and it costs a fraction of what you’d pay for traditional marketing methods.
- Go green
Implementing energy-efficient practices is not only cost-effective but can help to offset your business’ carbon footprint. There are many different ways to achieve this. Install energy-efficient lightbulbs such as halogens, LED and CFL.
Don’t leave the printer or AC running at night if there’s no one in the office, and use recycled paper when it’s not possible to use soft-copy documents.
Bonus tip! Buy in bulk. If your business sells a physical product, take advantage of the savings you get from buying in bulk to improve long-term cash flow. Even if you offer a service, you can buy frequent use items like stationery and printing paper in bulk to save more money.
There are many ways to save money in a business, and this article highlights just four of the most effective methods. You can apply these whether you’re a service or product-centred business to improve your profit margins almost immediately.