7 tips for improving your small business budget by avoiding unnecessary expenses
Running any business is difficult, but having hardly any budget to work with can make it a lot harder. For small businesses and new start-ups, this is likely to be a particular problem. Your budget is small, but there are still a lot of things you need to do with it – from marketing to employing staff, to paying your overheads such as office rent. Here are seven tips that will give you more money to work with.
- Consider your office hours
The days of the 9 to 5 are starting to become a thing of the past, with more people than ever before switching to flexible working schedules. Could you possibly save money by rethinking the times when your office is open? Having an office, or a retail space, means spending money on electricity, heating, and so forth. There’s no point doing that if your customers aren’t around during most of the times you’re open.
- Review your subscriptions
You’ve probably been tempted into paying for a lot of subscriptions – whether to software or services. They all promise to make your life easier, but do they really? Consider whether you can pay someone a basic hourly wage to do the same job, for cheaper. You might be surprised to see how many of your subscriptions aren’t really being used. If you don’t want to cancel outright, you might be able to downgrade your package.
- Get rid of paper
How many pieces of paper do your team get through in the average week? If you’re all printing off presentations, contracts, advert proofs, and all of the rest of it day in and day out, then you’re wasting paper. Not only do paper, ink, and electricity to power your printers all cost money, but not using them will also help the environment. Go digital!
- Know your market
Talking of advertising, make sure you’re spending your marketing budget on the right things. You need to be targeting your customers directly where they’re going to see you, buy from you, and follow you from then on. Don’t waste your money on adverts that don’t work for you.
- Get business accounts
Did you realize that you can save money in a lot of places just by signing up as a business, rather than an individual? Postal services are a good example of this – you might be able to get cheaper postage rates with a business account. Save on this and you’ll see small gains which build up rapidly.
- Fire your staff
Do you really need all your employees? You might be paying a lot more than you need to, even if you do need someone to do the work. Especially if there are tasks that only need to be done at certain times, consider taking on freelancers instead. This means you don’t have to pay as much in terms of employee benefits, and you might even be taxed less. You can also try to outsource some of your work to third-party companies.
- Talk to your suppliers
Are you really getting the best deal on any products or services you purchase? Talk to your suppliers. If you can find an example of someone who would be able to supply you for less, then great – tell them you’re thinking about switching, and they may be willing to offer you a better deal in order to keep your business.
Keeping your budget in control is absolutely necessary if your business is going to survive. Saving as much money as possible, making as much profit as possible, and investing wisely is key to success.
About the author:
Alex Lawson is a Financial Team Leader and a blogger, working together with other experts at Brighter Finance. Whenever not working on another project or helping customers with their financial issues, Alex may usually be found online, reading money-related blogs and sharing his tips with other experts.