The Top 5 Ways for Small Businesses to Save Money
When starting a small business, it is tempting to go straight for the biggest, best, and newest of everything.
But if you’re like most entrepreneurs, you’re doing this on your own, without the wallet of a big investor or a silent partner to see you through the tough times. That said, you need to save money wherever you can.
And chances are, unless you are offering some sort of specialized technological services, you don’t really need the most expensive new toys on the market.
So, to get started, here are the top five ways you can save when starting a small business.
Computer Equipment
This is an absolute necessity for small businesses nowadays. At the very least, you’ll need to conduct some amount of business online, so you’ll have to have internet access. In addition, you can do all of your bookkeeping via software like QuickBooks or Bookkeeper. However, buying hardware and software for your small business can get very pricey, so to save money, think about searching for something refurbished.
Most computer companies offer older (but still viable) computers at discounted prices. Or if you have to have it new, look into offers from Dell. They have all kinds of cost-effective solutions for small businesses and they will be able to offer more discounts if your business grows.
Ditto on software. It’s natural to gravitate towards known brand names, but less expensive software may do the same job or even fit your business needs better than the high-priced option.
Office Equipment
This could be anything from furniture to the paper in your printer. For starters, skip the stuff at office stores. The furniture is too expensive for the quality you get.
Instead, look at other options like Costco (a business account has other benefits, as well) or estate sales, especially if you’re outfitting a small space. As for office supplies, look online. You’ll pay for shipping, but you’ll probably save a lot on everything else. And buy bulk when you’re able.
Staff
Don’t be too quick to hire on a large staff. You may want to go big right out of the gate, but try to remember that this is a marathon, not a sprint.
Cutting head count initially is huge money-saver, and depending on how fast your business grows, you don’t want to have to fire and re-hire. Plus, if you start small, you will not only save on salaries, you’ll also spend less in extras like insurance and bonuses.
Office Space
The same as with head count, you want to start small. Leasing a huge office space is a great way to waste money.
Instead, opt for a smaller space with better visibility and accessibility (if you’re counting on foot traffic, this could be a much wiser use of your funds). And try to start with a short lease in case you do see outrageous growth and need to expand.
Finally, Shop Around
This applies to absolutely every aspect of your business. A little legwork can get you better rates on everything, from phone and internet service to the bagels you bring in on Fridays. As a small-business owner, you can’t afford to throw money around, so take the extra time to make every penny count. In the long run, it could make the difference between whether your business sinks or swims.
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I definitely agree with many of these strategies, but having a small staff when you start out is particularly key. However, I’d expand on that point by suggesting you want a small staff with the capabilities of a larger team. Find candidates with diverse skill sets and interests; a marketing applicant who also has a good eye for SEO, for example, could be a great addition to a startup web company.
Small businesses present a unique benefit to multitalented applicants that is often under-appreciated. By letting them in on the ground floor for a project that is likely to take off, you can offer your small team the chance to leave big impressions on the work they do with your business.
Another tip for saving on office supplies is to register on the office supply store’s site for great deals.
Also, if you do a keyword search for the name of a particular store followed by the word “discount” or “codes” (ex., godaddy codes), you’ll be able to find coupons or discount codes you can use.
There are also many credible websites that provide free software and tools that are comparable to the name brand products. A quick way to save some money.
Excellent suggestions. However the one area that no one should skimp on is the best software to protect your computers from virus and trojans. Trying to save $20-30 will not be worth losing your computer to viruses and down time while your computer is out of commission.
Kim @ Money and Risk´s last blog ..What Defines a Small Business?
Great article and discussion going on here.
I think outsourcing back office tasks and centralizing them can help small businesses reduce up to 40% of their costs, here’s how: http://mybusinessassistantblogs.com/?p=69
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Great tips for any business, even if you are doing good you should follow some , if not all, of the advice. My CEO has made it his mission to look at everything from phone systems to our internet provider. The way that we do this is simple, we list everything that we spend money on and go through it line by line to find alternative ways to save money. Nice article.
Rob
Rob SBA Financing´s last blog ..Navigating Your Way Around Surety Bonds
Check out the book “Rework” — It provides interesting viewpoints on all of the things here. For example, there’s a section that describes when it’s appropriate to hire staff. Don’t hire anyone until you can’t do all the work yourself. Staffing costs can eat at your operating budget quickly.
Small business owners need help learning how to truly capitolize there business infrastructure.
Good tips. I run a small business and look to cut costs wherever i can. I recently started outsourcing my company’s phones to a telephone answering service and have loved how helpful its been.
Eric Myers´s last blog ..Quality Is Our Specialty
Another thing to consider is hiring a cost recovery company to help look for areas where they can get you a large refund on money already paid, or a sunstantial tax benifit that even you CFO or CPA can’t get for you. We used a company to do a review for us and they recovered over $27,000 for my company. A friend of mine used the same company to do some type of a tax study for his building and he was able to get over a $100,000 tax benifit. There is money out there. Our decision was easy as there was no risk. If they didn’t find us a refund, we paid nothing! Our contacts name is John. I believe his number is 727/267/4618.
Good Luck!!!
Here’s another tip.
Be Slow to Hire and Quick to Fire.
Ben´s last blog ..10 Ways Everyone Wastes Money
This is a great article! You can never have enough resources as a small business owner to help save money!
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I agree Kate, only just came across this blog today and I thoroughly enjoyed the read. Cheers for your added one to this already extremely useful blog!!!
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