Managing finances with financial statements and a business budget should be a consistent priority for small business owners. As you assess your business’s financial status, you’ll want to consider how to increase your revenue and create more wiggle room in your budget. This is where finding strategies to save money is essential.
There are many ways for small businesses to save, so it’s important to find those that work for your business. Here are some common money-saving methods for getting started.
- Cut down on technology costs. High-quality technology is worth the investment to avoid technology problems within your small business, but purchasing good equipment doesn’t have to break the bank. Cloud-based solutions can help you ensure that all of your small business’s data is backed up while eliminating the need for expensive software and hardware.
- Explore affordable marketing techniques. Paid advertisements aren’t the only way to bring attention to your business. Try using your own content to connect with audiences, such as social media posts, monthly newsletters, blogs or vlogs, and more. You can also send press releases to local news outlets to cover your business’s news, team up with other local businesses to host events, or ask loyal customers to spread the word about your business. You’ll be surprised how many people you can reach through owned and earned media.
- Negotiate with the businesses that support your business. When working with suppliers and vendors, the rate you start out paying doesn’t have to be the same rate you pay later. Once you’ve established relationships with these other businesses, start a conversation about what you’re paying. Suppliers and vendors are often willing to adjust their rates for long-standing customers.
- Review all expenses and their ROI. When something causes money to go out of your business, it’s important to make sure it’s worth what’s coming in. By routinely reviewing your expenses, you may discover that some of them become unnecessary as your business’s needs change.
- Purchase supplies in bulk. Buying in bulk can help you find great deals for everyday items your small business needs. By stocking up through larger purchases, you pay less for supplies and save money on shipping by reducing its frequency.
- Consolidate your debt. Refinancing business debt, or taking out a new loan to pay off existing debt, can help you save money on debt payments. You may be able to get a lower interest rate or change your payment frequency to give you a lower monthly payment.
- Literally save money. A big part of saving money is – well, saving money. Put away a percentage of your monthly revenue into a fund that can’t be touched for regular operating expenses. Commit to saving this amount each month, regardless of how your business performs. It’s crucial to have funds on hand if an unexpected or urgent need arises.
If you implement one money-saving technique and find it doesn’t work, don’t be afraid to try a different approach. By being open to strategies that could eventually pay off, you’re already putting your small business on a path to increased savings and success.