What an exciting time to be running a small business. New technologies and services are helping to reduce small business expenses. These same technologies and services can open up access to potential customers around the world.
Running a small business or startup today can and should be much easier and more efficient than just 5 years ago.
The biggest challenge for small businesses and startups is increasing profits.
Increasing profits combine the challenge of growing revenue while maintaining control over expenses. Taking steps to reduce small business expenses is an essential part of maximizing cash flow and profits in your business.
With the 2017 year fast approaching, it is a great time to take action steps so you can increase your business profits for next year. This article will focused on ways to reduce small business expenses. For ways to increase your revenue for next year, please visit the article Steps to Take Now for Explosive Business Growth Next Year.
Key Reasons Why You Can Successfully Reduce Small Business Expenses
Small businesses now have the ability to
- build sophisticated business and technology infrastructures,
- utilizing the cloud, that previously were only available to large companies.
- Cloud-based tools in accounting, HR, CRM make it easy for small businesses to allocate resources to grow their business while keeping an eye on the bottom line.
Take advantage of the freelance workforce.
Freelance workers are a growing percent of the workforce. Utilizing freelance workers give small businesses access to the right people at the right time in a flexible way, without the responsibility of hiring traditional employees.
You won’t have to pay a full-time salary with benefits to employees who you may not need after a project or assignment is completed.
- Start an internship program.
- Hiring interns is a win-win situation.
- Interns get valuable experience, and you enjoy low-cost labor.
The Virtual Office:
Business meetings can be held at any venue, coworking space, or conference hall
The recurring cost of renting office space is usually the largest cost on an income statement. You have three options that can save you big money.
- First, convert your business to a virtual office. You can have your employees work from home and get rid of the office in its entirety. Leasing office space, paying for utilities and managing a physical office can be a drain on your financial resources. Employees will be able to cut down on their own commute times and expenses.
- Second, approach other spaces that already have tenants committed to long leases. More and more tenants have extra space, and you may be able to obtain a less expensive lease.
- Third, renegotiate with your landlord. With a soft demand for office space, landlords are becoming more flexible on the rent, to keep you in.
Make the most of your existing space.
Analyze your current use of physical space. Overflowing storage, too many supplies, piles of paper files and inefficient placement of furniture and equipment are common space wasters.
Ink cartridges, paper, file cabinets, and storage space are all expenses you can easily limit in the digital age.
Online outlets, such as Amazon and Etsy, are giving small businesses the ability to not only sell more niche products and services, but also to extend their reach to millions of customers that they previously never had access to.
Affordable Marketing and Media:
Modernize your marketing efforts.
Online advertising has made it cost-effective to connect with customers worldwide. For a fairly low cost, small businesses can deliver their targeted messages, whether it be a sponsored photo or in-stream video ad, to a whole new audience.
Easy website hosting platforms combined with free social media tools, such as Twitter, Facebook, Instagram and LinkedIn, make it easier for than ever for small businesses to reach, connect and market themselves to target audiences. Test using pay for click (PPC) advertising.
Additional Ways Small Businesses Can Reduce Expenses:
Purchase in Bulk
As your business grows, investigate to see whether there’s anything you can save on by purchasing in bulk.
- Switching to bulk software subscriptions can help.
- Many small businesses pay for services month-to-month when they could instead get a discount for paying annually.
Conduct a Technology Audit
Review your online presence.
- Compare your website and social media activity to your competitors.
- Analyze your website speed and mobile friendliness. If you need help in this technical area, I suggest reaching out to Dagmar Gatell for an SEO and website review.
Drop the Land Line
Telephone systems are expensive.
Voice-over-IP (VoIP) technology, like Ooma Office, allow small businesses to utilize their high-speed Internet to connect with customers, vendors and employees through affordable business phone services. with features like virtual receptionist, extension dialing, conference bridge and multi-ring that present a polished, professional first impression.
Buy used Equipment and Furniture
With technology constantly improving, you can get big discounts on software and hardware that was recently replaced by a new version. Used equipment can be just as useful as new equipment, but even at a few months old, these products will come at a significantly lower price.
Travel Less and More Efficiently
You can save a lot of time and money by avoiding unnecessary trips.
Use online resources like Cisco Webex, Zoom, and Skype to conduct meetings with people in multiple locations rather than traveling to visit them in person.
Another important cost-saving method is to join frequent flyer miles programs and rewards clubs through credit card companies. Also ask for corporate discounts and industry association discounts. When I book flights on short notice anywhere in the United States, I usually call the airline directly and book over the phone. This is often the only way to find out about corporate discounts.
I have booked less expensive flights from regional airports with in a short driving distants from major airline hubs. Riding the train, Amtrak, can be a huge savings if you can afford the extra time.
Conferences, Conventions, Summits, and Trade Shows
Attending conferences and conventions requires an investment of time, money, and energy making it important to prepare before you attend.
Pre-registering will save you the $$$. Most conferences and conventions also offer a “promo code” that you can enter to get a further discount. They are usually given out to the events presenters, speakers, and exhibitors. Ask around on social media if a “code” is available.
Credit Card Processing Fees
Small businesses may want to consider a service like Square that does not have the monthly fees associated with traditional processors.
One last tip to reduce small business expenses
Gadget Salvation – When you need to come up with extra cash for your business, one way to do it is by selling old gadgets that you no longer use, such as computers, cell phones, laptops, printers, TV’s etc. At Gadget Salvation, you will receive quotes for your used gadgets, and the process only takes a few minutes. Then, simply send in the gadget to GadgetSalvation
Running a small business or startup is now much easier and more efficient than just 5 years ago.
Cutting operating costs for your small business isn’t impossible. Don’t be afraid to spend money on the services and people you really need.
Reducing expenses only means one thing: more profit for you and your business. By looking at these areas, you’ll be able to increase your profits.
Here’s to you building a stronger company.
Good luck from the Sozial Monster Team.
We are experienced enough to solve your problem, small enough for you to know you will be a valued client.
If you want to learn more about how our team can help you grow your business, please schedule a FREE 30-minute Skype call with us.
Oh, if there’s anything I’m missing in this article, tell me! I’ll be happy to add it.
We welcome your thoughts and suggestions on this article in the comments section.
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