If there is one thing you’d want to stay on top of in a business — that’s your budget. Managing a small-business budget can be tough because they operate with a very limited, small-scale budget. Every money-related decision they make is crucial for the business to stay afloat.
But whether you’re a cafe owner in a small town or you’re a huge vinyl fence contractor in the city, your business could use some cost-cutting tips at some point.
Here are 11 cost-cutting tips for your small business to stay on top of the game:
1. Hire Fresh Graduates
Experienced job applicants are great but the future of your business does not depend on that. And paying experienced employees will cost your business a lot. What you can do is hire fresh graduates for entry-level job positions. Just because these people just graduated doesn’t mean they are not capable of working decently. Find the ones that can be trained and willing to learn.
2. Outsource
The employee salary can be one of the biggest chunks of your small business’ budget. For tasks that are less important but still needs to be done, consider outsourcing. By outsourcing, you are reducing operating costs because it is cheaper than hiring a full-time employee.
3. Utilize Open Source Software
Software is not cheap. But because it is considered essential in today’s businesses. You got to have one or more depending on the type of business you have.
Fortunately, there are many options for those companies who just do not have the money to splurge on software with hefty price tags. Go for open-source software. From project management to invoicing, to photo editing, you can find one suited for your need for sure.
So before you make a certain software purchase, check for some free options first.
4. Switch to ‘Green’ Options
Regardless of the type of business, you are running there is a way to green your company. One common way is to replace your lights with LED lights. According to Energy Saver, LED lights use at least 75% less energy and last 25 times longer. That sounds like a lot of saved-money.
Another way to go green is to go paperless. This does not only saves money but also time and space.
5. Support Community Events
Throwing events is a huge help in expanding your customer base. But, we know it can be costly. What you can do is support a community event instead. Find a partner to divide expenses with. It’s not only practical, but it’s also a fantastic way to build a good reputation in your community.
6. Take Over Marketing and PR
Paying for a PR firm can be expensive. If you have the knowledge and you can represent the brand yourself why not take it over? After all, it is you, the business owner, who can talk accurately about your business.
7. Negotiate with Vendors
It would not hurt to ask your vendors if they have some sort of discount or promotional offer. And, do not hesitate to negotiate with them. Most often than not, they are willing to meet you halfway and lower their prices — which is better than losing a customer.
8. Consider a Shorter Lease
A large block of your operating costs is your office lease. Consider renegotiating with your lessor and ask for a better deal.
For those who are just about to lease, ask for a shorter lease contract. This will save you trouble if things have gone out of control in your operations.
9. Review your Accounts Payables and Financial Statement Regularly
Reviewing your operating expenses regularly is vital to manage your finances efficiently. Your day-to-day expenses must be monitored even the small ones like tissue paper and coffee. They will add up no matter how small of an expense they are. Pay more attention to those details because they can save you more in the long run.
10. Reduce the Frequency of Maintenance
There are many areas of your business where maintenance is needed. For instance, cleaning services. Instead of paying for a daily cleaning service, reduce it to weekly.
Have your employees be responsible for emptying their own trash. That should not cause a drop of sweat. Just make sure to properly introduce this change to your employees. Relay the message in a positive light.
There is nothing wrong with cost-cutting you just have to set the right intention — which is to keep your small business going, to save your employees’ jobs, and most importantly to be of service to the community.