6 Tips To Decrease Business Expenses
As a start-up or small business keeping expenses down while you grow is a sure way to increase the revenue and success of your business. Many business owners underestimate the true cost of doing business until its too late.
Here are six tips we have laid out to help you decrease your business expenses:
1. Work with freelances where you can.
Hiring full-time employees to manage tasks that can otherwise be outsourced to a freelancer can save business owners on average of 20% to 30% over the year. Do you have employees that sit around for a majority of the time until you have assigned them a task to complete? Consider hiring freelancers for tasks and jobs as they come up in your day to day operations. By hiring freelancers you can save costs on employee benefits, office space, furniture, paid vacations, etc...
Consider these sites when you are looking to outsource talent for your business:
-Upwork -Fivver -Guru -Freelancer
These sites will have reviews and costs associated with the freelancer listed so you can pick and choose based on your budget and project.
2. Invest in the right software.
Whether it's a CRM or an accounting software keeping track of your daily leads, operations, and finances will make a huge difference in your business expenses. When you are looking to bring on a new software system feel free to shop around and ask account managers for a free trial of their service. This way you will be able to gauge cost-effective and efficient software solutions for your business before you commit.
You can have your employees track expenses using software like QuickBooks and Freshbooks to avoid paying an accountant their outrageous hourly rates.
3. Consider relocating your business to an inexpensive part of town.
Many business owners value location for their business for accessibility to a large customer base. If your business does not require an expensive location to impress clients and customers consider a location right outside of a busy city or town. This will allow you to be close enough to your customers but also save you tons on taxes and rents.
4. Market your business online.
If you are currently using traditional ways of marketing your business such as the local paper, television, radio, flyers, etc... you are missing out on a big piece of the internet pie. With the growing usage of the internet in today's world, many of your potential customers are already online. You can take advantage of low ad costs on social media platforms and use trick likes SEO (search engine optimization) to boost your overall business presence for a fraction of the cost compared to traditional marketing methods.
This perhaps is one of the best ways to save you in business and grow your customer base since there are many different platforms both paid and free for you to use as a business owner.
5. Buy used and refurbished equipment.
Are you looking to buy a concrete mixer for your construction company or furniture for your office space? When you consider the cost of purchasing equipment new vs used and the difference in quality it is almost always best to buy used equipment for your business.
6. Go Paperless
The cost of paper, ink, mailing, and postage can seem minimal in daily operations but over time can add up to hundreds if not thousands depending on the size of your business. Any business owner could agree that the cost savings of going paperless far outweigh the perceived convenience of paper documents. You are also saving the environment one tree at a time.
Each one of these 6 ways to decrease business expenses can save you money that can be invested in the overall growth of your business. Remember as a small business owner you want to use your capital in the most effective way possible.