In business, the more money you save, the better businessman you are! It’s a simple formula. Often times, small businesses and new start-ups are already on a shoestring budget, so they don’t really have as choice. But ideally, it is the aim of every business to keep their spending within certain limits, and save as much money as possible without compromising on the quality of their products or services or indeed without making too many large changes to how the organization functions or the business works (or the need to layoff employees!).
Here are some rock-solid and effective ways that businesses – start-ups and established ones – can do just that!
1. Watch your bills/track expenses
One of the first things that you can do is try cutting down on your expenses. And the easiest way to do that is by watching – and trying to slash – your bills and business expenses. Check what you’re paying for services such as the phone, internet or web hosting. Ask the experts in your office dealing with finances what they think are expenses that you can cut down on, and expenses you could perhaps totally do away with. And if you manage your own finances – which is quite easy to do so, as we’ve shown you before – you can enlist the help of these apps in order to check which expenses you can cut down on.
2. Use cheaper (or free) software alternatives
Cheap or free doesn’t always necessarily mean bad, or that you have to compromise on quality. In fact, cheaper alternatives can at times be better-suited for certain businesses. And the fact that they can save you a pretty penny isn’t half bad either! For instance look for open-source versions of different office software, such as Linux (or Ubuntu) instead of Windows, Libre Office instead of Microsoft Office and one of the many free alternatives to Photoshop, all of which cost quite a bit.
3. Use cheaper hardware alternatives
Linux-based as well as other open source alternatives – like their software – can help you save a penny or two, or much more! Linux solutions are cheap, and hence often cost-effective for small businesses, who may not have a lot of cash to play around with. Curious? Here are two links to get you started: The ultimate Linux starter kit for small business and The 5 Best Linux Servers for Small Business.
4. Harness the power of cloud!
We’ve already spoken about the power of cloud on this blog. Cloud computing can be quite cost-effective for all sorts of business modesl, but for small and medium businesses in particular. Since all resources that you pay to use aren’t being used by your business at all times – think during off-hours, weekends, holidays, and even during working hours – cloud can help you save quite a bit of money. With cloud computing, the idea is to pay for what you use. Mashable recently put up this article on how businesses can use the cloud to save money, worth the read!
5. Use Apps
Not only do apps help you and your business become more efficient and allow you to conduct business easily, they are super-handy, can be accessed anywhere and everywhere (since just about everyone and their mother owns a smartphone now!), and above all, are cheap. Which also means that they can be cheap alternatives to much more expensive software or services. Check out our list of 16 of the best apps for business owners to get you started.
6. Market and promote your business more efficiently
Take, for starters, advertisement expenses. For instance, do you send out a bill to your customers, or perhaps a mailing letter? It might be a good idea to put your latest promotion on the back-side of the bill or the letter. Not only are you saving expenses, you’re putting white space to good use. Similarly, scan your promotional fliers and posters and send them with any emails that go out of your office. If you send our printed newsletters, would it be better and more cost-efficient to do so via email?
7. Hire cheap and train them
Hiring inexperienced (and hence cheap) labor can be quite fruitful in terms of cutting costs. Many small businesses actually look for fresh blood when it comes to hiring, and prefer hiring fresh graduates since experienced candidates cost a lot more money. The trick is to hire smart inexperienced people, and train them instead. Not only can training save you money, it can also help you build a better workforce – a workforce that is much more suited to your organization, and knows it inside-out.
8. Keep your employees motivated and happy
As they say, a happy workforce is a productive workforce! Corporate wellness is essential, as is the fact that your employees should be motivated. Motivated employees will give it all for you and your organization, and as mentioned above, will be productive. In business, time is money, and if your employees are quick and efficient, it costs your organization less amount of money to do it, hence saving money. Check out this great article on corporate wellness here.
Entrepreneur.com ran this amazing article on no less than 50 ways of reducing business costs, a must-read!
As business owner or an entrepreneur, what are some of your tips for saving money? Do share with us in the comments section below!